Fidelity's Fully Paid Lending Program: Pros, Cons, and Trade-offs
As seen on the 24/7 Wall St. homepage on July 14, 2026.
Financial adviser Wes breaks down whether lending your portfolio to Fidelity for passive income is worth the risks to your holdings.
A listener asked Wes on this week's Ask an Advisor episode: 👉 "What are the pros and cons of Fidelity's Fully Paid Lending Program?" Wes says it's an interesting program—but it's not a decision to make without understanding the trade-offs. Here's the basic idea: 💰 You allow https://t.co/LsbwmLPAf1
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Fidelity's Fully Paid Lending Program lets account holders allow Fidelity to lend out securities they already own in exchange for passive income. Financial adviser Wes, featured on Clark Howard's Ask an Advisor episode, describes the program as interesting but cautions that it is not a decision to make without understanding the trade-offs involved.
The core appeal is straightforward: your idle holdings generate income without you having to sell anything. But as Wes frames it, there are meaningful pros and cons that investors need to weigh before opting in, and the details of those trade-offs matter depending on an individual's situation and goals.
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Anyone considering the program should go in with a clear picture of what they are agreeing to, rather than treating the income as purely free money. Wes's breakdown on the episode is aimed at helping listeners make that call with full information rather than on the surface appeal alone.