Swissquote has introduced its innovative Securities Lending Program, empowering clients to generate passive income from their existing securities. The program, initially focused on loans to selected stocks and ETFs, is going to expand to include a broader range of assets in the future.

Clients participating in the Securities Lending Program stand to benefit from the increasing demand for specific stocks, with an annual payout rate that could potentially reach an impressive 5% or more, resulting in a net return rate of approximately 1%.

Jan De Schepper, the Chief Sales and Marketing Officer at Swissquote, emphasized the program’s commitment to democratizing securities lending, making it accessible to all private clients, regardless of their portfolio size. Following a successful launch in Luxembourg, the program will be seamlessly available through clients’ bank accounts and an accompanying app, eliminating any minimum deposit requirements.

Swissquote New Innovative Securities Lending Program

To ensure transparency and informed decision-making, clients have to explicitly register and accept the program’s terms, which include acknowledgment of associated risks. Swissquote reassures clients that the lent securities will be restricted to reputable banks and financial institutions, ensuring the effective functioning of capital markets. This move aligns with the broker’s commitment to compliance with regulations, as evidenced by its status as a FINMA-regulated entity.

Swissquote, a publicly-listed broker, reported a robust financial performance in 2023, boasting impressive figures such as a consolidated net revenue of approximately CHF 530 million. The broker projects a pre-tax profit of at least CHF 255 million, further solidifying its position in the market.

The Securities Lending Program not only diversifies Swissquote’s offerings but also provides clients with an opportunity to generate passive income. By leveraging their existing securities, clients can earn interest while still enjoying regular dividends. This move underscores Swissquote’s dedication to providing innovative financial solutions that cater to the evolving needs of its clientele.

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