Proper brokerages will pay you to lend your securities, transparently disclose their programs, and require consent. For example: - https://www.interactivebroke

Proper brokerages will pay you to lend your securities, transparently disclose their programs, and require consent. For example: - https://www.interactivebrokers.com/en/pricing/stock-yield-enhancement-program.php https://www.interactivebrokers.com/en/pricing/stock-yield-en... - https://www.fidelity.com/trading/fully-paid-lending https://www.fidelity.com/trading/fully-paid-lending Some brokerages lend out spare cash (and pay a transparent interest rate, and are subject to strict reserve requirements) but the majority of assets controlled by a typical brokerage are securities. FTX assets were all subject to their leverage strategies, with no specific reserve.