At IB you can sign up for the stock yield enhancement program, where you earn 50% of the income from borrow fees. Do other brokers offer to share borrow fees? Do brokers need customers to accept/certify that their long positions are lent out? In that case I assume customers do that when they sign up for the account.
Yes, it’s a security lending, all large brokers have that. Once you sign up, it is up to the broker to lend your shares or not. If you sell your shares, the broker just uses another customer’s.
I think the stock yield enhancement program is unique to IB. And I don't think other brokers offer this and nor can they lend out the stocks that are owned by their clients without the clients' express consent. The stocks that you have bought are assets legally owned by you just like other assets like your house and belong to you only. Edit: Correction. Like @mervyn has said, other brokers have the same security lending program but they still cannot lend out the stocks or any securities without the clients' consent I think.
Can My Broker Lend Out My Stocks? To be clear, your brokerage firm cannot lend out your stocks without your permission. However, you may have signed a customer agreement that explicitly allows your broker to lend out your securities. This clause is often tucked deep within the customer agreement, and few investors pay much attention to it. In many cases, investors who have a margin account with their brokerage firm will be asked to sign a hypothecation agreement. This agreement generally gives the brokerage firm the right to lend shares of securities that you own. Understanding if Your Broker Can Lend Your Stock Securities – Review Your Customer Agreement All investors should have a comprehensive understanding of their relationship with their financial advisor and their brokerage firm. For example, you need to know whether you are working with a stockbroker or a registered investment advisor (RIA). While an RIA has a duty to act in your best financial interests (a fiduciary duty), a stockbroker only has a duty to offer you suitable investment advice. Many people do not realize the crucial difference. In addition, you should know exactly what stocks you are holding and if your broker has the right to lend those securities to short sellers. Do not be afraid to ask questions. If you are not comfortable with the arrangement, you should be ready to ask for changes. Finally, if you believe that your broker or brokerage firm is committing fraud or acting in a negligent manner, you should speak to an experienced investment fraud lawyer immediately. https://sonnlaw.com/faq/can-my-brok...lear, your brokerage,pay much attention to it.