Trading 212 Share Lending: Is It Worth It?

Updated 30 October 2026

Trading 212 lends out shares you own to other market participants and passes some of the income to you. On the Invest account, it is possible to switch it on; however, it is not possible on the ISA account.

The amounts are usually small, and there are a couple of trade-offs worth knowing, so it is worth a quick look at whether to enable it or turn it off.

This guide explains what share lending is, how you earn from it, what happens to your dividends and your votes, the risks involved, and who it actually suits.

 

 

Key Takeaways

• You earn by lending shares: Trading 212 lends your shares to other investors and pays you part of the interest.
• A 50% split: you receive half of the interest Trading 212 earns from lending your shares.
• Invest account only: share lending is not available in an ISA, only in the Invest account.
• Off by default: the feature isn’t switched on automatically, so you opt in rather than out.
• You keep your dividends: you still receive your dividends, paid as a manufactured payment.

What Is Share Lending?

Share lending is where you let other market participants borrow shares you own, usually so they can carry out their own trading strategies, in exchange for a fee.

On Trading 212, the platform manages the whole process for you: your shares are lent out, the income is collected, and your share of it is paid to you, without you having to arrange anything.

It is available in the Invest account, and it works on the shares you already hold, including fractional shares, so you do not need to do anything differently to take part, which is also why it is worth knowing that it is on by default.

If you want the wider context of how the platform’s features fit together, our guide on how to use Trading 212 covers them.

It is also worth knowing that share lending is a long-established practice in financial markets rather than something unique to Trading 212; what the platform does is simply handle the mechanics for you and pass a share of the proceeds to ordinary investors who would not otherwise be in a position to take part by themselves.

How Do You Earn From It?

Each day that your shares are lent, Trading 212 receives interest from the borrower and passes 50% of it on to you.

The rate completely depends on demand. Shares that are hard to borrow can earn more, while widely available shares earn very little. In practice, the amounts are often small, especially for the widely held shares and ETFs most people own. For a typical portfolio, the income is a minor extra rather than a meaningful return.

To put the scale in perspective, a portfolio of mainstream shares and ETFs might generate only a few pounds a year. That is because those shares are easy for borrowers to source and therefore command little interest.

It is mainly the harder-to-borrow shares, which most long-term investors hold few of, that earn more.

The consequence is that share lending is best viewed as a small bonus on shares you already own. It is not really a strategy in itself. Our guide to Trading 212 fees explains how it fits among the platform’s other revenue sources.

Do You Still Get Your Dividends?

Yes. When your shares are on loan, you still receive the full value of any dividends, but they come to you as a manufactured payment from the borrower rather than as a normal dividend direct from the company.

The amount is the same, but the form is different.

That difference can matter for tax: a manufactured payment can be taxed differently from an ordinary dividend in some cases.

So if you have a specific tax position you are managing, it is worth being aware that lending can change how a dividend is treated, even though it does not change how much you actually receive as a dividend.

(Tax treatment depends on your individual circumstances and regulations which may change)

What Are the Risks?

The main worry with share lending is what happens if the borrower fails to return your shares.

Trading 212 manages this by holding collateral worth at least 102% of your lent shares. The collateral is adjusted daily, so there is more than enough security if a borrower defaults.

That collateral arrangement is the core protection. Daily adjustments keep it aligned with the value of your shares as prices move. That is why the risk is generally considered low rather than zero. In a default scenario, the collateral is intended to be sold to buy back your shares. The 102% buffer exists to cover the gap if prices move against you before that repurchase takes place.

No arrangement is entirely without risk, of course.

However, daily adjustments keep the buffer meaningful rather than letting it drift out of date as prices change.

There is one other point to note that is not about money. While your shares are on loan, you give up your voting rights because the borrower holds the vote during that period.

For most investors who never vote, that makes no difference, but if it matters to you, we explain it fully in our guide to voting on Trading 212.

Is It Worth It?

For most everyday investors, the income from share lending is small, so the decision is rarely about the money.

If you are comfortable with the collateral-backed arrangement and do not actively vote your shares, leaving it on earns a little extra for no effort.

It is also worth knowing that share lending only operates in the Invest account. Shares held inside a Stocks and Shares ISA are never lent out, so ISA investors automatically keep their voting rights and ordinary dividend treatment.

Therefore, the choice only arises in the Invest account, where the feature is enabled by default.

Some investors prefer to switch it off. The amounts earned may be too small to justify the different dividend tax treatment or the low risk of non-repayment. Others want to keep their voting rights at all times or simply prefer not to lend out their shares.

Either way, it is a setting you can change whenever you like.

Conclusion

Trading 212 share lending is a low-effort way to earn a little extra from shares you already own. It is backed by collateral of at least 102%, adjusted daily.

The income is usually small, and the feature is only available in the Invest account. The main thing is to decide deliberately.

If you value always holding your voting rights, or if the manufactured-dividend tax treatment matters to you, leaving it off is a perfectly reasonable choice. If not, turning it on costs you basically nothing in effort.

 

FAQ

Is Trading 212 Share Lending Safe?

Trading 212 holds collateral worth at least 102% of your lent shares, adjusted daily, to manage the risk if a borrower fails to return them. That being said no share lending is ever completely risk-free.

How Much Can You Earn From Share Lending?

Usually very little. The rate is variable and based on demand. For popular shares, the amounts are small.

Can I Lend Shares Inside My ISA?

No. Share lending is only available in the Invest account, not in an ISA.

Do I Still Get Dividends on Lent Shares?

Yes, as a manufactured payment from the borrower, which may be taxed differently from a normal dividend.