How to disable stock lending on your Charles Schwab account
You can turn off stock lending on Charles Schwab by logging into your account online, navigating to Account Settings, and opting out of the Stock Loan Program. The process takes a few minutes and stops Schwab from lending your shares to other investors. Once you disable it, your shares remain in your account and you keep full control — Schwab will no longer earn lending fees on your holdings.
Stock lending is optional at Schwab. If you have never explicitly enrolled, you may already be opted out. But if you want to confirm your status or make sure lending is turned off, the steps below show exactly where to go.
Key Takeaways
- Log into your Schwab account online, go to Account Settings, and look for the Stock Loan Program or Lending Preferences option.
- You can opt out entirely, or choose to lend only certain positions while keeping others off-limits.
- Changes take effect immediately, though it may take one to two business days for any currently lent shares to be recalled to your account.
- Opting out means you will not receive any lending income Schwab would have paid you, but your shares stay under your control.
Step-by-step: Finding and disabling stock lending
Start by logging into your Charles Schwab account at schwab.com. Once you are logged in, look for Account Settings or Preferences — this is usually found in the top right corner of the page or in a menu labeled with your name or a gear icon.
Inside Account Settings, search for "Stock Loan Program," "Lending Program," or "Lending Preferences." The exact name varies slightly depending on your account type and when Schwab last updated the interface. If you cannot find it in the main settings menu, try searching within Account Settings using the search box if one is available.
Once you locate the Stock Loan Program section, you will see your current enrollment status. Select the option to opt out or disable lending. Some accounts allow you to choose which positions to lend and which to keep off-limits — if that option appears, you can select individual stocks or funds you want to exclude from lending.
Confirm your choice and save the changes. Schwab will send you a confirmation email. Any shares currently lent out will be recalled within one to two business days.
What happens when you turn off stock lending
When you disable stock lending, Schwab stops lending your shares to short sellers and other investors who need to borrow stock. Your shares are returned to your account if they are currently lent out, and you regain the ability to sell them at any time without restriction.
You will no longer receive any lending income. Schwab typically pays account holders a small percentage of the lending fees it collects, but opting out means you forgo that income. For most retail investors, the amount is minimal — often a few dollars per year on modest holdings — but it is worth knowing the trade-off.
Your account remains fully functional. You can still buy, sell, and trade normally. The only change is that Schwab will not use your shares for lending purposes.
Partial opt-out: Lending some positions but not others
If you want to keep lending turned on for some stocks but disable it for others, Schwab allows you to manage this at the individual position level. In the Stock Loan Program settings, look for an option to customize which holdings participate in lending.
This approach lets you earn lending income on positions you are comfortable with while protecting shares you plan to hold long-term or sell soon. You can change these settings at any time, so you can adjust your preferences as your portfolio strategy changes.
Why you might want to turn off stock lending
Some investors disable stock lending because they want full control over their shares at all times. If you plan to sell a position soon, lending it out means waiting for it to be recalled, which can take a day or two. Others turn it off for philosophical reasons — they do not want their shares used to short the stock or fund short selling strategies.
If you hold a stock that is heavily shorted or volatile, lending it out can occasionally create complications. For example, if a stock is called away for lending and you need to sell urgently, you may face a brief delay. Most investors never encounter this problem, but it is a real consideration for active traders or those holding highly liquid, frequently borrowed stocks.
The lending income Schwab pays is also typically very small for retail accounts. Unless you hold a large portfolio of highly sought-after stocks, the amount you earn from lending is unlikely to be significant enough to outweigh the inconvenience or philosophical objection.
How to check your current stock lending status
You can see whether stock lending is currently active on your account by going to Account Settings and viewing the Stock Loan Program section. Schwab will show you whether you are enrolled, opted out, or using selective lending on specific positions.
If you have never changed this setting, your status depends on your account type and when you opened it. Newer accounts are often opted out by default, but older accounts may have been enrolled automatically. Checking your status takes less than a minute and requires no action unless you want to make a change.
Frequently Asked Questions
How long does it take for lent shares to come back to my account?
Shares are typically recalled within one to two business days after you opt out of stock lending. During that time, you can still sell the shares — Schwab will handle the mechanics of recalling them if needed. You do not need to wait for the recall to complete before trading.
Can I turn stock lending back on after I turn it off?
Yes. You can re-enable stock lending at any time by going back to Account Settings and changing your Stock Loan Program status. The process is the same as opting out — it takes a few minutes and takes effect immediately.
Will turning off stock lending affect my account fees or commissions?
No. Disabling stock lending does not change your account fees, commissions, or any other charges. It only stops Schwab from lending your shares and stops you from receiving lending income.
What if I cannot find the Stock Loan Program option in my account?
If you cannot locate it after checking Account Settings thoroughly, contact Schwab customer service by phone or through your account messaging. They can confirm your lending status and help you change it if needed. Some account types or older interfaces may label this option differently.
Do I lose money if I turn off stock lending?
You stop earning lending income, which is typically a small amount. You do not lose money in your account or face any penalties for opting out. You simply forgo the small percentage Schwab would have paid you from lending fees.