Through the Bitso app, you can enroll in Alpaca's Fully Paid Securities Lending (FPSL) program, a way to earn additional income from the stocks you already own. Once enrolled, Alpaca may lend your eligible shares to borrowers on your behalf, and you'll receive monthly payments when your securities are borrowed.
How does it work?
When you enroll via Bitso, Alpaca facilitates the lending of your eligible fully paid shares to borrowers, typically institutions that need them for short selling or trade settlements. Borrowers pay an interest rate based on market conditions, and you receive a monthly payment calculated based on the value of the shares on loan.
What are the benefits?
- Earn passive income from stocks you're already holding.
- Reinvestment potential: use the monthly income to grow your portfolio.
- Support market liquidity by enabling short sellers and more efficient price discovery.
- Retain ownership: you keep economic exposure to your shares, including potential price appreciation, even while they're on loan.
Am I eligible?
You must meet at least one of the following:
| Requirement | Threshold |
|---|---|
| Account balance | 2,500 USD |
| Reported annual income | 20,000 USD |
| Liquid assets | 20,000 USD |
| Trading experience | At least 1 year |
What account types and securities are eligible?
All account types holding US equities that have been fully paid for (or that exceed any margin debit) are eligible. This includes stocks, ADRs, and ETFs. You can't choose specific securities to lend; by enrolling, all eligible holdings in your account will be considered.
Not all your eligible shares will necessarily be lent. Lending depends on market demand: if there isn't a favorable rate for a given security, it may not be lent.
Before you enroll
Read Alpaca's Important Risk Disclosures for FPSL before enrolling. All investments involve risk. Past performance doesn't guarantee future results.