What You NEED to Know Before Trying Robinhood Stock Lending (2023-2024 Update)

[@KieC.]

.12% upside for the risk of not being insured and losing the tax benefits of dividends. It’s a no for me

[@TechWeLove]

Not only is stock lending dangerous, most brokers aren't transparent about the rate at which you are paid for your loaned shares. If they don't tell you the rate that you get paid, it's probably pathetically low, and probably not worth the risk as a result.

[@mre168]

Thanks! Helpful and made me decide the risk isn't worth the tiny rewards.

[@TheRDGuarantee]

Happy to help!

[@shawnshawn3107]

Gonna lose more money on the taxed dividends than profits from lending out. Won’t even, even out. You’d be doing Robinhood and the lendee a favor

[@Mr.Fields.]

yep..

[@B_Dubs_OHigh-O]

Can you explain? Aren't taxes done in percentage? Like hypothetically the government takes half and if you make $0.50 off of it and they take 25 cents you still make a profit of 25 cents . If not, will you please explain so I too can have the knowledge😂

[@adorabledev]

just sell calls lol…

[@FactStorm]

Spot on

[@IL_Bgentyl]

@@B_Dubs_OHigh-OI’m not 100% on what the tax will be but I’d assume ordinary income. So how much you make that year determines your tax obligation. Let’s say you make $1 and you’re at the 50% tax rate. You will retain .50cz

[@jinxesvixen9978]

Thanks, this helped alot. I already lose on my taxes i cant think of getting taxed more. For the little amount they will get me. 😮‍💨

[@conrad_t]

Short sellers borrow and sell it and then buy it back when the price is low. Not the other way like you said in the video

[@liahfox5840]

That was a great example of what I wanted to learn. I subbed, ty!

[@WhiteDecay]

Im still learning from time to time. My portfolio has more dividend stocks, small amounts are from big companies and majority is from not so popular companies. After hearing about the tax risk from stock lending I am still unsure about doing stock lending.

[@TheRDGuarantee]

Let me know if you decide to try it out!

[@EchadLevShtim]

Qualified dividends after holding 1 year is 10% tax. It doesnt get any lower than a long term position. Stock Lending at this stage would be losing comparatively.

[@Jordancraigmiller]

Do you lose SPID protection on your whole portfolio permanently or just the stocks being lent out at that point in time?

[@suspiciouscarrot8403]

Very informative, sections were nicely labeled which made it easy to follow. It's a yes for me for your channel but unfortunately a no for me for stock lending. If dividends from stock lending weren't treated as ordinary income that would be taxed normally, I might've considered otherwise. Unfortunately, seeing how Robinhood is a newer "broker" and not one that has been well established that doesn't screw you over on your "rebate," (Schwab/Fidelity I've seen give me 50/50) stock lending isn't something I see myself doing, even if it is completely automated.

[@valentinlorien9015]

Very informative. Thank you!

[@DaCake2]

Thanks for the video. 🙏

[@TheRDGuarantee]

You're welcome! Good luck!

[@benjapolcycling]

I doubting after having more knowledge about tax and review yearly 1099 DIV, a huge portion of my dividend is not qualified but checking ETF tax document from ETF fund they should be almost 100% qualified. Just few cents gain with $$$ of tax bill is definitely not worth it. DISABLE right away.

[@Ankhrea]

Feel like it would be a better deal if you could pick individual stocks so you can turn off the dividend stocks at least to make sure you're not lending them on the div dates

[@2011Savere]

Doesn’t sound worth the headaches to do it.

[@aronKlay]

Great Video RD!! Quick Question: If 2 traders open identical 1 standard lot and 1 person has 1:2 leverage whilst another has 1:1000 leverage. Trade goes out-of-the money by 100 pips and both close their positions, who loses more? or do they both lose $1000 since both positions sizes were identical.

[@vikasbrungi5309]

Thanks bro. I enabled it just to see how it works and disabled after watching your video. Now am I covered under SIPC?

[@ShaneFit]

Lmao

[@ptown24]

Very good informative video. Not worth it imo to do this but i glad to have learned about it

[@larryivey8118]

You can park your money in a high yield money market account and earn more than that

[@TheRDGuarantee]

Absolutely

[@Godfather9814]

Good video! Definitely a good insight but as someone that is invested in large companies like Exxon, Lockheed, waste management and so on this probably wouldn’t be a method I’d use either

[@TheRDGuarantee]

Thanks, sounds like we have similar investing styles!

[@Godfather9814]

@@TheRDGuarantee yeah I believe in DCA with the bigger and stronger companies with like $14 a day in my robinhood account till I get a full share and move on and repeat the cycle and building my own etf of sorts lol!

[@TheRDGuarantee]

@@Godfather9814 That's awesome! It's rewarding to see the progress grow over time. Good luck 👍

[@Godfather9814]

@@TheRDGuarantee I just wish I started sooner since I started at 30

[@VincentS988]

Like you, I focus my attention to ETF’s like VOO and VYM so this is not worth it for me.

[@tl3234]

Wait so now instead of them just shorting the stock they can gain the ability to short and the rights to vote on company decisions ( Definitely won't vote to make bad decisions to drop the value)? Idk sounds OP to the rich

[@Anomalous-One]

Stock lending IS NOT WORTH IT! You give people the ability to short the stocks *YOU OWN* _(potentially driving down the value of your positions)_ AND you lose a percentage of the 'gains' you would accrue from the stock lending interest due to *tax implications.* You get *_less than_* pennies on the *_thousands of dollars_* of your holdings and give the market manipulators the ability to _use your own stock holdings against you_ Turn it off & keep it off!!

[@aftech7268]

Why would u want to lend to short your stock ? Sounds sinister not knowing who is behind it… I’m filing a complaint with Robinhood one of my stocks receive an interest payment from lending it! I never enabled this feature

[@gedeo]

You lose SIPC ??? Im out.

[@xi.amaru.aboriginal.TAMERiKAAN]

Ur making a big mistake signing up with robinhood (OFAC) regulated with freeze your account without a court order or explanation.. you’ve been warned

[@zachhagarman9053]

Thanks for the info! Robinhood recommends it but after watching this I’d say no way 😂

[@billymarion7433]

Not worth the risk to me

[@bruhman8674]

In Robinhood, is stock lending all or nothing or can you select which stocks you want to make available to lending?

[@TheRDGuarantee]

All or nothing. You can not select only parts of your portfolio to lend out.

[@bruhman8674]

@@TheRDGuarantee Gotcha, thnx

[@dw5107]

Great question, bruh! I was def imagining same thing, never would have thought to ask. Thank you and thx RD. sorry I don’t know @s

[@riverxuanyu]

Not worth it, lending ammunitions to your enemy with all the risks and very little reward. Much better off to sell some covered calls or just sit tide and hold.

[@J_Brian]

Can I still sell covered calls on my shares?

[@simply_diecast_3349]

I've seen many KZbin videos on Robinhood stock lending and read articles and reviews...that's a Negative for me 👎

[@andrewlittlefield3425]

Thanks

[@jodilee330]

Is it possible to lose your shares if the borrower wants to buy those 100 shares? This is supplying contracts, yes? For options. So end of contract technically you have option to buy those shares or sell your contract. Obvi most ppl sell contract but if they wany to buy the shares, will we lose those those shares???

[@epiphanisation]

Good vid mate I sell stocks on trading 212 Currently getting 24.4 apy across the stocks that are been lent My highest is 59.9 apy I have started specialising in risky high lend stock 😬🤣 Time will tell whether it is worth the risk Anyway Do you know which other trading apps allow share lending in the UK Robin Hood is not available for UK residents

[@TheRDGuarantee]

That's awesome! Let me know how things go for you haha. I'm unfortunately not an expert in trading apps in UK. I know you've got to use almost totally different financial platforms than we have over here though. Not much crossover. Good luck!

[@DKDRFTA]

Not gonna trust a guy with a coat vest. Ya gotta non fiduciary ring on that hand?

[@TheRDGuarantee]

😂

[@sonny5982]

When my stocks are lend can I still sell options on my stock like covered calls ?

[@ListenAnObserve]

That return is not worth it, I rather keep my voting rights, keep my dividends.

[@HectorMSalcedo]

I didn’t know about this, and today, I received a stock lending payment. If I'm already lending (whitout knowing), can I just disable the option, and that's it? Or how can I change it on Robinhood? Thanks in advance.

[@TheRDGuarantee]

Yes you can disable. Check in your account settings in the same place that you would enable it. Congrats on the unexpected payment haha!

[@HectorMSalcedo]

@@TheRDGuarantee lol well, it was only $0.02, I lend only 3 SCHD shares and 1 DAX without knowing it 🤣

[@jessicaembers924]

I found Robinhood to be impossible to even sign up with. And highly question authenticity?

[@TheRDGuarantee]

I've never had problems signing up. Is your issue with linking a bank account to transfer in money?

[@serafinnieves8137]

@@TheRDGuarantee That is my issue, the linking is scary because it is controlled by Robinhood, is my sense. Does Robinhood need to log in to my account for money transfers?

[@eviehankins8223]

I have only been able to dip my toe in so far with small stocks. So i only have like 4 stocks- maybe 170.00 total atm. So with so few/so little, is it worth it? How will taxes come i to play?

[@TheRDGuarantee]

You probably won't make enough from stock lending turned on at that total investment to even notice. Maybe a few cents here and there.

[@eviehankins8223]

@@TheRDGuarantee thank you for the reply!! I have somestocks (like Disney stocks) but not really much at all. So I might wait until i can put some more into it. But the info pops up when i go on Robinhood and I just wanted to understand it better. Thank you for the great video!

[@TheRDGuarantee]

@@eviehankins8223 keep grinding on it! Good luck 👍🏼

[@geneloggie168]

Can I get into robinhood with out setting up a bank Institute

[@ImpolzeArt]

Can we turn off stock lending ? Or once its ON, it stays on.

[@TheRDGuarantee]

You can turn it off at any time. Follow the same walkthrough steps in the video to turn it on, and you'll find the place to turn it OFF

[@aviknayak9703]

Do I get that stock back ?

[@TheRDGuarantee]

You keep the stock the entire time you're lending it out. You can buy more or sell at any time.

[@ivareimers-roberto9194]

Thank you so much for this video

[@TheRDGuarantee]

You are so welcome!