Robinhood Stock Lending

Salam All,

Robinhood recently launched something called Stock Lending (About Stock Lending | Robinhood) so I was just curious to see if this is something I could do or if that falls outside of compliance/guidelines. I’ve tried to keep my portfolio to compliant stocks and ETFs, just mainly curious about using this particular feature.


This doesn’t appear to be a permissible transaction based on what’s mentioned on their site:

When we borrow shares of a particular stock from your account on a given day, you will earn whichever of the following earns you more money: (i) a rebate rate that is 15% of the weighted average rebate rate we earned by lending that stock to borrowers on that day, or (ii) $.01 for your total position in that stock that was borrowed on that day. This would be your share of the rebates Robinhood earned for that stock on that day (across Robinhood’s introducing broker and clearing broker).

Robinhood charges the borrower an interest rate for borrowing your stock and in return pays you a percentage of that interest income, i.e. “rebate rate”.

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I understand. Thank you for breaking it down for me!