Saxo Bank announced that it will make Stock Lending available to its clients in the MENA region, giving clients the opportunity to earn extra revenue from lending out their securities portfolio.
“With macroeconomic uncertainty and an inflationary environment, most investors want to make their money work harder for them. At Saxo Bank, we are committed to helping our clients make more of their money. The introduction of Stock Lending supports that, as it opens up an alternate stream of revenue on the stocks that clients have in their portfolios while retaining control of their stocks” Damian Hitchen, CEO of Saxo Bank MENA comments.
How it works
When clients activate Stock Lending, the client makes available their stocks andETFs and to be lent from their account. For the securities lent out, clients will receive a payment depending on the market demand for the securities on loan.
Clients will still be exposed to the price movement of their stocks, will still earn dividends on their portfolio, and can sell their stocks at any point irrespective of the loan.
As a well-regulated financial institution, Saxo Bank acts as the intermediary and will ensure that the process is handled in a secure and safe way, and will provide the client with collateral in the duration of the loan. In the MENA region, Saxo Bank is one of the few brokers to make Stock Lending available as an option to clients, thereby giving clients a new and secure opportunity to make their money work harder for them.
