Stock Lending
If you own a significant stock position, you can monetize it with minimal risk through the Cache Stock Lending Program. We make it effortless, and we pass on most of the revenue to you.
Did you know that most brokerage firms lend out your stocks and earn revenue? This generates significant revenue amounting to billions in additional revenue for the brokerage industry.
At Cache, we pass on most of the revenue to you.
We’re proud to offer one of the highest revenue splits in the industry.
How much could I make?
Stock symbol
Any Stock
Keep all ownership rights
You’re lending, not selling. All the stocks you lend will still belong to you.
Get paid every month
You’ll see a monthly payment in your account at the end of the month.
Earn dividends
Qualified dividends are payments from issuers, both domestic and certain qualified foreign corporations, when investors purchase and hold their shares for a specified minimum period of time. To be eligible for qualified dividends, investors cannot maintain puts, calls, or short sales positions associated with the shares during the holding period. Manufactured dividends are earned when investors lend out shares. The payments are made by borrowers of securities over the duration of the borrow.
Qualified dividends are payments from issuers, both domestic and certain qualified foreign corporations, when investors purchase and hold their shares for a specified minimum period of time. To be eligible for qualified dividends, investors cannot maintain puts, calls, or short sales positions associated with the shares during the holding period. Manufactured dividends are earned when investors lend out shares. The payments are made by borrowers of securities over the duration of the borrow.
Dividends are paid out if you pledged stocks that pay them. Note that these are manufactured dividends, not qualified dividends.
Qualified dividends are payments from issuers, both domestic and certain qualified foreign corporations, when investors purchase and hold their shares for a specified minimum period of time. To be eligible for qualified dividends, investors cannot maintain puts, calls, or short sales positions associated with the shares during the holding period. Manufactured dividends are earned when investors lend out shares. The payments are made by borrowers of securities over the duration of the borrow.
Ample Protection
All loans are backed by cash collateral from the borrower equal to 102% of the stocks borrowed, valued and adjusted daily.
Sell your stocks at any time
You can sell stocks that are lent out. We automatically recall the stock and cancel the stock loan.
Who’s eligible for stock lending?
Our stock lending program is available for anyone holding at least $100,000 in stock at Cache. It’s a financial product designed for advanced investors who understand the risks and might not be appropriate for everyone.
Is Stock Lending a good idea?
If you hold a significant position in particular stocks, stock lending could be a straightforward way to earn passive income or generate alpha from these holdings. Comparing across various ways to monetize one’s holdings, stock lending has sufficient risk controls within the regulatory frameworks, and it is a well-oiled machine that has been running for decades. It also doesn’t involve extra work for you. Just opt-in and we’ll take care of the rest.
Cache offers this program in partnership with our clearing broker, Apex Clearing Corporation. Apex manages the lending activities of many other retail brokerages.
How do I know when my stocks have been lent out?
You’ll be able to view an outstanding stock loan on your dashboard. Note that stock lending is driven by demand in the markets, and we can’t ensure that we’ll be able to lend out all your particular stocks.
What if I change my mind? Can I recall an outstanding stock loan?
Yes. If you want to to sell your stock, we’ll automatically recall your stock and terminate the outstanding loan. You can also go to your Settings tab at any time and toggle off stock lending for particular stocks.
How can I enable or disable stock lending?
Open the Settings tab and toggle on or off stock lending for particular stocks.
What are the risks?
Waived voting rights: You’ll assign the voting rights of your stocks to the borrower.
Loss of SIPC Protection: SIPC doesn’t cover stocks on loan. These loans are instead secured by a 102% collateral that can be used by the lending agent to replace stocks if the borrower is unable to return the stocks.
No guarantee of loan: If there isn’t a market demand for the stock, then your stocks might not be lent out.
Borrower Default Risk: The borrower may default, including by failing to return the securities in a timely manner, or at all. In order to minimize the risk of the borrower default, each borrower is assessed by Apex and monitored over time. Apex will conduct regular borrower reviews. New transactions are systematically prevented if a borrower reaches internal limits. As an additional safeguard, Apex provides an indemnity for a shortfall in collateral in the event of a borrower default. If a shortfall were to exist between the collateral amount received and the cost to repurchase a loaned security, and that shortfall is not due to reinvestment risk, Apex will refund promptly the amount would reimburse the fund in full.
Collateral Re-Investment Risk: When cash is received as collateral, it may be reinvested in a money market fund with the objective of preserving principal and liquidity while generating income.This re-investment of cash collateral exposes a lender to various investment risks and potential loss of principal. These risks include market, liquidity and credit risks, and are not covered by Apex borrower default indemnity. Market risk is the potential for losses due to changing prices. Liquidity risk is the possibility that securities or instruments in which the cash is invested become difficult to sell or can only be sold at discounted prices. Credit risk is the potential that securities or instruments in which the cash is invested default or sell at discounted prices due to changes in credit quality.
Cache Advisors LLC (“Cache Advisors”) is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training. Cache Advisors is a wholly-owned subsidiary of Cache. Cache Advisors’ investment advisory services are available only to residents of the United States in jurisdictions where Cache is registered. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Cache Advisors’ investment advisory services. Please refer to Cache Advisors’ Form ADV for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Cache Advisors.
Cache Securities LLC (“Cache Securities”) is a broker-dealer registered with the SEC, and is a member of the Financial Industry Regulatory Authority Inc. (“FINRA”) and of the Securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). For additional information and an explanatory brochure, please see www.sipc.org. Cache Securities provides security trading to self-directed customers. Cache Securities is a wholly-owned subsidiary of Cache. Additional information about Cache Securities can be found on FINRA’s BrokerCheck. Clearing, execution and settlement of securities transactions is provided by Apex Clearing Corporation (“Apex”). For additional information on Cache Securities, please visit BrokerCheck at https://brokercheck.finra.org/
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