Stock lending is turned off in your Robinhood account settings under the Investing tab

Robinhood lends out shares you own to other traders who want to short-sell stocks. When you turn off stock lending, Robinhood stops borrowing your shares for this purpose. The setting is not on by default — you have to turn it on first for it to be running. If you have turned it on and want to stop, you go to Account, then Investing, then find the Stock Lending toggle and switch it off.

The process takes less than a minute. Your shares stop being lent out when ready, though any shares already lent out may take a few business days to return to your account. You can turn stock lending back on at any time using the same toggle.

Key Takeaways

  • Stock lending is off by default on Robinhood, so you only need to turn it off if you previously turned it on.
  • The toggle is located in Account settings under the Investing tab, not in a separate menu.
  • Turning off stock lending takes effect when ready, though shares already lent out may take a few business days to return.
  • You earn a small amount of interest when stock lending is on, so turning it off means you stop receiving that payment.

Where to find the stock lending toggle

Open the Robinhood app and tap the Account icon at the bottom right. From there, tap Investing. Scroll down until you see Stock Lending. The toggle will show whether it is currently on or off.

On the web version, log into your account, click the Account menu in the top right, select Settings, then go to Investing. Stock Lending appears in that same section.

What happens when you turn stock lending off

When you switch the toggle off, Robinhood stops accepting new requests to borrow your shares. Shares that are currently lent out will be recalled, meaning Robinhood asks the borrower to return them. This recall usually takes one to three business days, though it can occasionally take longer if the borrower is slow to comply.

While shares are being recalled, you still own them — they are just temporarily in someone else's account. You cannot sell them until they return to your account. If you need to sell shares urgently and some are lent out, contact Robinhood support to ask about expediting the recall.

Why you might turn stock lending off

Stock lending pays you a small amount of interest — typically a fraction of a percent per year — so the main reason to turn it off is that you do not want Robinhood to lend your shares. Some investors turn it off because they want full control over when their shares are available to sell, or because they do not want to participate in short-selling activity.

Others turn it off temporarily when they plan to sell shares soon and do not want to wait for a recall. If you are holding shares long-term and do not plan to sell, the interest payment may outweigh the inconvenience, so you might leave it on.

How much money you make from stock lending

Robinhood does not publish a fixed rate for stock lending interest. The amount you earn depends on how much demand there is to borrow the specific stocks you own — popular stocks that are frequently shorted pay more, while stocks with less demand pay very little. You can see your current earnings in the Stock Lending section of your account, where Robinhood shows your year-to-date interest.

For most investors, the interest is small enough that it does not factor heavily into the decision to turn lending on or off. If you own a highly shorted stock, you may earn a few dollars per month. If you own less popular stocks, you may earn cents per month or nothing at all.

Turning stock lending back on

If you turn off stock lending and later change your mind, you can turn it back on using the same toggle. Go to Account, then Investing, then find Stock Lending and switch it on. Robinhood will begin lending your shares again as soon as the toggle is switched, and you will start earning interest on shares that are borrowed.

There is no waiting period or re-approval process — the toggle works when ready in both directions.

Frequently Asked Questions

Do I have to turn off stock lending before I sell my shares?

No. You can sell shares even if they are lent out — Robinhood will recall them automatically when you place a sell order. The sale may take a day or two longer than usual while the recall happens, but you do not have to manually turn off stock lending first.

Will turning off stock lending affect my buying power or margin?

No. Stock lending and margin are separate features. Turning off stock lending does not change your buying power or how margin works on your account.

Can I turn off stock lending for only some of my stocks?

No. The stock lending toggle is all-or-nothing — it applies to your entire account. If you turn it on, all your shares are available to be lent. If you turn it off, no shares are lent.

What if I have a margin account instead of a cash account?

Stock lending works the same way on both account types. The toggle is in the same place, and turning it off stops lending when ready.

How do I know if my shares are currently lent out?

Robinhood does not show you which specific shares are lent out, but you can see your total stock lending interest in the Stock Lending section of your account. If you are earning interest, some of your shares are being borrowed.