stock lending fee being charged by broker - how to negotiate

chibiks

Member
52 0
Hi,

I shorted a stock and it was initially free of costs, however the broker called me and notified me they will be charging a lending fee... they charged me 5% for the position for a day. Now they are charging 2% per year for the position. I really want to get it back down to 0% - what is the best way to negotiate?
 

Rhody Trader

Senior member
2,620 266
The lending fee has a lot to do with how much of the stock is available to short. If there's a lot of short selling, the available shares will be limited and the lending fees will go up. That would be the first thing I'd look at with your stock. You may not be able to do much about it otherwise, unless you're a sizable account.
 

MORRIS2001

Member
74 7
The broker may be adding a premium but generally it is the global custodian who determines stick lending fees.
 
 
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