Stock lending lets you earn money on shares you already own by allowing Fidelity to lend them to other investors
Stock lending is a feature that lets Fidelity borrow your shares temporarily and pay you a portion of what they earn by lending them out. You keep ownership of the shares, receive dividends, and can sell them whenever you want — the borrowed shares are returned automatically. The income you earn depends on demand for the specific stock and how long Fidelity lends it.
To enable stock lending, you log into your Fidelity account, navigate to Account Settings, find the Stock Lending section, and toggle the feature on. The process takes a few minutes and requires no paperwork. Once enabled, Fidelity begins lending may be able to access shares from your account immediately.
Key Takeaways
- Stock lending is turned on through Account Settings in your Fidelity account and can be disabled at any time.
- You continue to own the shares, receive all dividends, and can sell them without restriction while they are lent out.
- Not all stocks are may be able to access for lending — Fidelity determines which shares can be lent based on market demand and liquidity.
- The income you earn varies by stock and changes based on how many shares Fidelity can lend and for how long.
- Fidelity automatically recalls borrowed shares when you place a sell order, so there is no delay in executing your trades.
Where to find the stock lending setting
Log into your Fidelity account on the website or mobile app. On the website, click your name or profile icon in the top right corner and select "Account Settings." On the mobile app, tap the menu icon (three horizontal lines) and go to "Settings."
Once in Account Settings, look for a section labeled "Stock Lending" or "Lending Program." The exact name and location can vary slightly depending on whether you use the classic or newer Fidelity interface. If you cannot find it immediately, use the search function within Settings and type "stock lending."
How to enable the feature
When you locate the Stock Lending section, you will see a toggle switch or checkbox next to an option to participate in the program. Click or tap the toggle to turn it on. Fidelity may ask you to confirm your choice or review a brief disclosure about how the program works.
After you enable it, the change takes effect immediately. Fidelity will begin lending out your may be able to access shares right away. You do not need to select individual stocks — the system automatically lends shares that meet Fidelity's lending criteria based on market conditions.
Which stocks Fidelity will lend from your account
Not every share in your portfolio becomes available for lending. Fidelity lends only stocks that have sufficient market demand and liquidity. Highly liquid, widely traded stocks are more likely to be lent than smaller or less frequently traded companies.
Fidelity does not publish a complete list of may be able to access stocks because the list changes constantly based on market conditions. You can see which of your shares are currently being lent by checking your account activity or holdings page — lent shares are usually marked or noted separately. If a stock you own is not being lent, it is because Fidelity has no current demand for it, not because you are ineligible.
How much money you can earn
Your earnings depend on two factors: which stocks are lent and for how long. Stocks with high short-selling demand earn more because more investors want to borrow them. Stocks with low demand may earn very little or nothing in a given month.
Fidelity pays you a percentage of the lending revenue, but the exact split varies. You can see your stock lending income in your account statements under a section labeled "Interest and Dividends" or "Other Income." The amount typically ranges from a few cents to a few dollars per month for most retail investors, though accounts with large holdings of in-demand stocks can earn more.
What happens to your shares while they are lent
You retain full ownership and all rights to your shares. You receive all dividends paid on lent shares, and those dividends are deposited into your account as usual. You can sell lent shares at any time — Fidelity automatically recalls them from the borrower to complete your sale order.
There is no delay in selling because Fidelity maintains a system to retrieve shares on demand. Your trade executes at the market price at the time you place the order, just as it would for shares that are not lent. The lending arrangement does not restrict your ability to trade or access your shares.
Turning stock lending off
If you decide you no longer want to participate, return to Account Settings, find the Stock Lending section, and toggle the feature off. The change takes effect immediately, and Fidelity stops lending new shares right away. Shares that are already lent out are recalled and returned to your account within one to three business days.
You can turn stock lending on and off as many times as you want. There is no penalty for disabling it, and re-enabling it later is just as simple as the first time.
Frequently Asked Questions
Do I pay taxes on stock lending income?
Yes. Stock lending income is taxable and reported on your tax return. Fidelity includes this income on your year-end tax documents. Treat it as ordinary income, not as investment income or capital gains.
What if I want to short sell a stock I own?
You can short sell a stock even if you have lent shares from your account. Fidelity manages the mechanics separately. However, check with Fidelity about any specific rules for your account type, as some account structures have restrictions on short selling.
Can I enable stock lending on a retirement account like an IRA?
Stock lending rules vary by account type. Traditional and Roth IRAs may have different policies. Contact Fidelity directly to confirm whether stock lending is available for your specific account, as some retirement accounts restrict or prohibit the feature.
Will stock lending affect my margin or buying power?
Stock lending does not reduce your buying power or margin availability. Lent shares still count toward your account value and collateral calculations. Your ability to borrow on margin remains unchanged.
How often does Fidelity pay stock lending income?
Fidelity typically pays stock lending income monthly, though the exact timing can vary. The payment appears in your account as a credit and is included in your monthly statement. Check your statement to see when payments arrive.