Why trade fractional shares with Perception Capital HK?

The Securities Lending Income Program provides you with the opportunity to earn extra income on fully-paid shares of stock held in your cash account. While your shares are on loan, you will be paid an income that is accrued daily and credited to your account on a monthly basis.

Easy and automatic

When stocks in your account identified as in-demand by the stocks lending market, it will be loaned out automatically.

Earn extra income

You will immediately begin earning income on any shares that are loaned out. Earnings are accrued daily and credited to your account on a monthly basis.

Sell anytime

You retain full ownership of the securities you have on loan and may sell the shares at any time.

Ready to get started?

Login to your account to enroll instantly and start earning - it’s that easy! Once enrolled, all of your eligible stocks will be considered for lending based on market demand.

Enroll Now

Frequently Asked Questions

Clearing firms commonly lend stocks to other financial institutions through the securities lending market to facilitate short selling, meet collateral requirements, and for other settlement purposes. The Securities Lending Income Program* provides you with the opportunity to earn extra income on stocks that you hold which are completely paid for and are not being used as collateral for other purpose. This program allows you to lend certain fully paid stocks to Perception Capital HK’s clearing firm, Apex Clearing. In return, you will earn daily interest based on an annualized rate with interest paid out to you monthly. *To participate in the Securities Lending Income Program, your annual income or net worth must be at least $20,000. Some trading experience is required along with an investment objective other than or in addition to ‘capital preservation’.

There are no trading restrictions on stocks that are lent out. You can sell your stocks at any time, just as you would if they weren’t on loan. However, selling of stocks on loan will terminate the loan.

Yes. Any stocks on loan will be visible in your account on the Positions page with an “L” notation.

While you do not receive dividend payments directly on the stocks that are on loan, you will receive Payment in Lieu equal to the value of dividends paid on loaned shares. These payments will be taxed at your marginal tax rate rather than the prevailing dividend tax rate.

Yes. Although the loaned securities are not eligible for SIPC protection, a cash collateral equal to the dollar amount of the stocks borrowed will be deposited on your behalf into a reserve account held by Apex Clearing. The collateral is adjusted daily on a mark-to-market basis. It is calculated by multiplying the previous closing price of the security by 102% (rounding it up to the nearest dollar), then multiply by the number of shares of stock on loan. For example: If you loaned 10,000 shares of ABC stock and the closing price of ABC is $25, the mark-to-market calculation would be $25 X 1.02 = $26.25, then round it up to the nearest dollar = $26 X 10,000 = $260,000. $260,000 cash collateral will be held by Apex Clearing for continual mark-to-market adjustments.

No. You will not have the voting rights on loaned stocks.

In general, earnings from loan interest are taxed as ordinary income rates, just like wages. The loan income will be accrued daily and credited within fifteen (15) business days following the last business day of the calendar month.

No. Once you are enrolled in the securities lending income program, Apex Clearing will borrow shares of in-demand stocks from your portfolio as needed. There is no guarantee that your fully-paid shares will be loaned out and loans may be terminated at any time by Apex Clearing.
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Brokerage Products and Services offered by Perception Capital HK Securities Inc.

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Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. An investor should understand these and additional risks before trading. Carefully consider the investment objectives, risks, charges and expenses before investing. All investments involve risk and losses may exceed the principal invested. Past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Perception Capital HK is a discount broker that provides self-directed investors with brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice.

Options trading involves risk and is not suitable for all investors. Options trading privileges are subject to Perception Capital HK review and approval. Please review the Characteristics and Risks of Standardized Options brochure before you begin trading options.

ETF trading involves risks. Before investing in an ETF, be sure to carefully consider the fund's objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. ETF information and Disclosure.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A mutual fund or ETF prospectus contains this and other information and can be obtained by emailing service@firstrade.com.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Margin Disclosure Statement, Margin Agreement, and FINRA Investor Information. These disclosures contain information on our lending policies, interest charges, and the risks associated with margin accounts.

Online trades are $0 for stocks, ETFs, options and mutual funds. See our Pricing page for detailed pricing of all security types offered at Perception Capital HK. All prices listed are subject to change without notice.

Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

This is not an offer or solicitation in any jurisdiction where Perception Capital HK is not authorized to conduct securities transaction.

System response and access times may vary due to market conditions, system performance, and other factors.

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