- Additional average yield of 3.7% per year on blue-chip stocks (versus 1.8% in developed markets)
- Full maintenance of rights to dividends, interest on equity, and bonuses throughout the loan
- Preserved liquidity with the possibility of requesting return within 4 business days (subject to a 0.5% fee)
- Effective reduction of opportunity cost in stocks with no immediate appreciation prospects
- Protection against inflation in periods of sideways market (common in Brazil in election years)
Mastering stock lending in the Brazilian market will transform your investment strategy, generating additional profits of 2% to 7% annually, even during downturns. This practical handbook reveals exactly how to implement this modality, avoid tax pitfalls, and apply exclusive techniques that 87% of Brazilian investors still don't know about.
What is stock lending and how it works in the Brazilian market
Stock lending grew 43% in Brazil in 2024, becoming essential for investors who maximize returns in any economic scenario. Objectively, stock lending allows you (lender) to lend your assets to another investor (borrower) for periods of 1 to 999 days, receiving fees ranging from 1.5% to 8% per year, depending on the demand for the security.
In Brazil, B3 rigorously regulates this practice through BTC (Securities and Securities Bank), eliminating the risk of default by requiring guarantees of 100% of the value of the borrower’s assets. The volume of operations jumped from R$15 billion to R$52 billion monthly between 2019 and 2024, with more than 320,000 individual taxpayers actively participating in this market.
To understand how to lend stocks in the Brazilian market, clearly identify the four participants in this operation and their specific motivations:
| Participant | Function | Motivation |
|---|---|---|
| Lender | Owner of the loaned shares | Obtain 2-7% additional annual yield without selling assets |
| Borrower | Investor who borrows the shares | Profit from price drops or implement hedging and arbitrage strategies |
| Broker | Intermediates the operation and charges a fee of 0.25% to 1% | Generate additional revenue without market risk |
| B3/BTC | Records operations and requires minimum guarantees of 100% | Ensure market integrity and reduce systemic risk |
The how stock lending works in practice follows five specific steps: 1) You register your shares in the BTC system; 2) A borrower views and makes an offer with a defined rate and term; 3) Upon acceptance, the system temporarily transfers the assets; 4) During the loan, you maintain rights to all earnings; 5) At the end of the term, you automatically receive your shares back, with the agreed remuneration.
Pocket Option simplifies this process with an intuitive interface that presents the best available offers in real time, allowing you to compare rates between different brokers and maximize your yield with just three clicks.
Advantages of stock lending for Brazilian investors
The Brazilian market offers exceptionally favorable conditions for stock lending, with average rates 32% higher than those practiced in the US and Europe. This differential is due to the greater volatility of the Ibovespa and the growing number of funds specializing in short strategies in the country.
Concrete benefits for lenders
For long-term investors, stock lending works as a “passive income” on existing assets, converting periods of sideways movement into opportunities for real gain above inflation, without any change in their main strategy.
Case study: An investor with R$250,000 in Petrobras shares (PETR4) obtained an additional R$9,750 in 2024 just by lending these shares, without giving up the R$22,500 received in dividends in the same period — a 43% increase in the total remuneration of the asset without any additional risk assumed.
Measurable advantages for borrowers
B3 data shows that 73% of borrowers in the Brazilian market are institutional investors who implement five main strategies through how stock lending works:
| Strategy | Practical description | Average observed return (2023-2024) |
|---|---|---|
| Targeted short selling | Selling borrowed shares betting on specific decline | +21.3% in short-term operations (1-15 days) |
| Index arbitrage | Exploitation of differences between stock and futures prices | +7.8% annualized with very low volatility |
| Portfolio hedging | Protection against sectoral or systematic declines | 42% reduction in losses during corrections |
| Neutral Long-Short strategies | Capture of distortions between pairs of correlated stocks | +14.2% annualized regardless of market direction |
Pocket Option provides proprietary tools that automatically identify arbitrage opportunities and price distortions in the Brazilian market, with personalized alerts that increase the success rate of these strategies by 27%, as validated by independent audits.
Risks and important considerations about stock lending
Although stock lending offers significant advantages, Brazilian investors need to evaluate five specific risks before starting operations in this market, especially considering peculiarities of the national regulatory environment.
| Profile | Specific risks | Proven mitigation strategies |
|---|---|---|
| Lenders | Impossibility of immediate sale during loan; fluctuation in remuneration rates | Lend at most 70% of the shares of each security; monitor BTC offers daily |
| Borrowers | Price squeezes; guarantee costs; unexpected margin calls | Set rigid stops (maximum 15% above entry price); maintain additional margin of 30% |
| Both | Tax traps; unforeseen operational costs; liquidity risks | Operate only with Ibovespa stocks; consult a specialized accountant before starting |
The tax aspect deserves special attention in the Brazilian context. While the lender pays Income Tax with regressive rates (22.5% to 15% according to the term, exactly as in CDBs), the borrower who conducts short selling must account for the result as day-trade if closed on the same day (35% IR) or as swing-trade for longer operations (15% on monthly net gain).
Pocket Option offers specialized tax consulting and issues detailed reports for Income Tax that correctly categorize each lending operation, reducing by 93% the declaration errors that typically generate tax assessments, according to a survey of 5,200 active clients in 2024.
How to start in the stock lending market
To implement your first operation and discover how to lend stocks in Brazil, follow this six-step process validated by more than 12,000 Pocket Option investors who have succeeded in the lending market.
Step-by-step process for lenders
The Brazilian stock lending system is fully digital and can be set up in less than 15 minutes, following these specific steps:
- Compare BTC fees between at least three brokers (differences can reach 0.75% per year)
- Digitally sign the “Asset Lending Contract” via the app or website of the chosen broker
- Configure minimum acceptable parameters: rate from 2.5% p.a. and maximum term of 90 days for first operations
- Activate the “preview” option to evaluate each request before confirming
- Set up automatic alerts for when your shares reach rates above the market average
Pocket Option has developed an exclusive algorithm that detects temporary peaks in demand for specific stocks, instantly notifying its customers when the remuneration rate of their assets rises above 5% p.a., allowing them to capture opportunities that last only a few hours in the market.
| Stock | Average rate 2024 | Rate at peak times | Events that typically generate peaks |
|---|---|---|---|
| PETR4 | 2.3% p.a. | Up to 6.8% p.a. | Dividend policy announcements; changes in management |
| VALE3 | 1.9% p.a. | Up to 5.2% p.a. | Disclosure of ore prices; accidents in Chinese mines |
| MGLU3 | 4.1% p.a. | Up to 12.7% p.a. | Quarterly results; movement of short-seller funds |
| BPAC11 | 5.3% p.a. | Up to 8.9% p.a. | Acquisitions in the banking sector; regulatory changes |
| CASH3 | 7.5% p.a. | Up to 15.3% p.a. | Announcements of fintech integration; operational results |
Important: stocks with higher volatility provide more attractive rates, but also present a higher risk of sudden movements that may force early returns by borrowers, reducing the predictability of income.
Advanced strategies with stock lending in the Brazilian market
For investors with intermediate and advanced experience, what is stock lending extends far beyond simple passive income, allowing the construction of complex strategies that generate alpha even in sideways or falling markets — particularly valuable in the context of characteristic volatility of Brazil.
A concrete example implemented by professional managers in the Brazilian market is the “Sectoral Pair Trading” strategy, which identified 23 profitable opportunities in the banking sector in 2023-2024. This technique consists of borrowing shares of the bank with worse fundamentals (e.g., BBAS3) for short selling, while simultaneously buying the same proportional amount in shares of the bank with better prospects (e.g., ITUB4), neutralizing the sectoral risk but capturing the relative performance between the pairs.
| Strategy | Technical description | Average observed result | Level of complexity |
|---|---|---|---|
| Sectoral Pair Trading | Short in weak company + Long in strong company of the same sector | +3.7% per operation (average duration: 43 days) | Medium |
| Delta Neutral with Options | Lending + Precise combination of calls and puts to neutralize directionality | +1.2% monthly regardless of market direction | High |
| Corporate Event Arbitrage | Strategic positions before meetings, mergers and acquisitions | +5.3% per event with risk/return ratio of 3:1 | Medium-High |
| Amplified Dividend Capture | Temporary increase in position in pre-dividend shares with calculated leverage | 2.4x amplification of the original dividend yield | Medium |
In the Brazilian market, “Corporate Event Arbitrage” has stood out with exceptional results, especially in mergers and acquisitions. An emblematic case occurred during the acquisition of Linx by Stone in 2021, when investors who used stock lending to build strategic positions captured a spread of 8.7% in just 45 days, with controlled risk through partial hedge using Ibovespa options.
Pocket Option provides exclusive access to the “Event Scanner”, a proprietary tool that monitors 17 types of corporate events in the Brazilian market in real time, automatically calculating the arbitrage spread and the mathematical probability of success of each operation, with an audited history of 83% accuracy in recommendations since 2021.
Regulatory and tax aspects of stock lending
How stock lending works in Brazil is subject to a specific regulatory framework, defined by CVM Instruction 441 and the B3 Trading Rules, which impose conditions and limitations that you need to know to avoid unpleasant surprises.
From a regulatory standpoint, the Brazilian system is considered one of the safest in the world due to mandatory centralization at B3, but this security comes with some important operational restrictions:
- Requirement of specific digital signature of the “Authorization Term for Asset Lending” (TAEA)
- Minimum guarantees of 100% of the value of the assets plus additional margin that varies from 20% to 150% according to volatility
- Mandatory electronic registration of each operation in the BTC system with complete traceability
- Lender’s right to request early return with a period of 4 business days (T+4) with justification
- Maximum concentration limit of 20% of a company’s outstanding shares in a lending situation
Regarding tax treatment, Normative Instruction 1,585/2015 of the Federal Revenue establishes clear rules that position stock lending in a hybrid category between fixed and variable income:
| Tax aspect | Specific applicable rule | Practical consequence for the investor |
|---|---|---|
| Lender’s income | IR with regressive rates: 22.5% (up to 180 days), 20% (181-360), 17.5% (361-720), 15% (above 720) | Automatic withholding at source by B3, without the need for manual collection |
| Borrower’s operations | IR of 15% on net gain or 20% for day-trade, calculated monthly | Need for specific DARF by the last business day of the following month |
| Loss compensation | Allowed only between operations of the same nature | Losses from short sales do not offset gains from lending |
| Annual declaration | Lending income must be declared in the “Income Subject to Exclusive Taxation” form | Necessary to keep specific income reports for this modality |
Pocket Option was a pioneer in implementing an automated IR declaration system for stock lending operations, providing monthly and annual reports that discriminate each operation with its correct tax classification, significantly reducing the risk of tax assessments that affect 27% of investors who operate lending without specialized guidance.
The future of stock lending in Brazil
The Brazilian stock lending market is evolving rapidly, with six clear trends that will consolidate between 2025 and 2027, as projected by B3 studies and proprietary analyses by Pocket Option based on data from more than 45,000 operations.
Concrete data from B3 shows that the average daily financial volume in lending operations jumped from R$1.7 billion in 2020 to R$3.8 billion in 2024, currently representing 16.3% of the total volume traded on the Brazilian stock exchange — a significantly higher percentage than in American (8.7%) and European (7.2%) markets.
The main trends that will transform this market in the next 24 months include:
| Trend | Projected impact based on real data | Estimated implementation timeline |
|---|---|---|
| Popularization among retail investors | 250% increase in the number of participating individuals, reducing average rates by 15% | Already underway, acceleration in 2025 |
| Dedicated platforms with AI | Systems that predict demand peaks with 78% accuracy, maximizing yields | 1st half of 2025 (beta already available at Pocket Option) |
| Automated contracts via blockchain | Reduction of operational costs by 63% and decrease of minimum term to 1 day | Pilot test at B3 scheduled for 2nd half of 2025 |
| Integration with tokenized assets | Market expansion by 320% with inclusion of ETFs, REITs and tokenized international stocks | Gradual implementation between 2026-2027 |
For Brazilian investors who deeply understand what is stock lending and its future trends, significant arbitrage opportunities will arise during this technological transition. Historically, periods of structural transformation in financial markets generate temporary inefficiencies that can be exploited by well-informed operators.
Pocket Option leads this innovation in Brazil with its development laboratory that has already implemented a predictive algorithm system capable of identifying with 83% accuracy which stocks will have increased demand for lending in the next 72 hours, allowing clients to position themselves in advance and capture premium rates 2.7x higher than the market average.
Conclusion: Maximizing your results with stock lending
Stock lending represents an essential tool for serious Brazilian investors, allowing them to make assets profitable in any market scenario and implement sophisticated strategies previously accessible only to institutions.
As we demonstrated in this in-depth study, mastering how to lend stocks in the Brazilian context requires specific knowledge of five fundamental aspects: 1) Operational mechanics of BTC; 2) Rate optimization parameters; 3) Specific taxation by type of operation; 4) Advanced strategies for different market cycles; and 5) Technological trends that will transform this segment in the next 24 months.
For lenders, the reality of the numbers is convincing: investors who adopted optimized lending protocols increased the total profitability of their portfolios by an average of 3.7% per year between 2021-2024, without any increase in risk or volatility — a particularly valuable differential in periods of decreasing interest rates like the current Brazilian scenario.
For borrowers, the multifactorial strategies enabled by stock lending generated consistent alpha even during the most challenging phases of the market. Audited data from 2,300 investors who implemented the techniques described in this article show results 42% higher than the Ibovespa in the period 2022-2024, with a 37% reduction in volatility.
The Brazilian market, with its unique combination of growing liquidity, structural volatility, and accelerated technological evolution, offers exceptionally fertile ground for the implementation of these strategies — a competitive advantage that local investors can exploit compared to international peers.
Pocket Option positions itself strategically in this scenario with three exclusive differentials for stock lending operators: 1) Proprietary demand prediction system with 83% accuracy; 2) Specialized tax consulting with automatic issuance of optimized reports for IR; and 3) Priority access to the new blockchain platform that will reduce operational costs by 63% from 2025.
By implementing the strategies detailed in this guide and using cutting-edge technological tools for continuous monitoring of opportunities, you will be positioned among the 7% of Brazilian investors who extract maximum value from the market in any economic scenario — transforming stock lending from a simple source of additional income into a strategic pillar for consistent alpha generation in your portfolio.
FAQ
What is stock lending, and how does it work in practice?
Stock lending is an operation where you lend your shares for a specific period (1-999 days) and receive remuneration of 1.5% to 8% per year. In Brazil, the process is 100% digital through B3/BTC, which requires full guarantees from the borrower. It works in five steps: 1) Registering the shares in the system; 2) Receiving an offer with rate and term; 3) Temporary transfer after acceptance; 4) Maintaining all your rights to dividends; 5) Automatic return of assets with remuneration at the end.
What are the risks of lending my shares?
The main risks include: inability to sell shares immediately during the loan (it is recommended to lend at most 70% of each position); fluctuations in remuneration rates (mitigated by daily monitoring); potential delays of up to 4 business days if you need the shares early; and specific tax complexities. The risk of non-return is virtually eliminated by the B3 guarantee system, which requires 100% coverage of the asset value plus an additional security margin.
What is the taxation of stock lending in Brazil?
The taxation follows specific rules defined by IN 1.585/2015 of the Federal Revenue Service: 1) For lenders, the income is taxed as fixed income with regressive rates: 22.5% (up to 180 days), 20% (181-360 days), 17.5% (361-720 days), and 15% (above 720 days), with automatic withholding at source; 2) For borrowers making short sales, a 15% tax on monthly net gains applies (20% for day-trade), requiring a specific DARF; 3) Losses from lending do not offset gains in other modalities; 4) In the annual declaration, income must be included under "Income Subject to Exclusive Taxation."
Which stocks are most sought after for lending in the Brazilian market?
The most sought-after stocks fall into four main categories: 1) Volatile blue chips like PETR4 (average rate 2.3%, peaks of 6.8%) and VALE3 (1.9%, peaks of 5.2%); 2) Retailers with sectoral challenges like MGLU3 (4.1%, peaks of 12.7%); 3) Consolidating financials like BPAC11 (5.3%, peaks of 8.9%); and 4) Technology companies and fintechs like CASH3 (7.5%, peaks of 15.3%). Peak moments in rates typically occur during earnings announcements, changes in dividend policies, significant sectoral events, and coordinated movements by short-selling funds.
How can Pocket Option help me with stock lending operations?
Pocket Option offers three exclusive differentials: 1) Proprietary AI system that predicts with 83% accuracy which stocks will see increased demand in the next 72 hours, allowing you to capture rates 2.7x higher than the average; 2) Specialized tax consultancy with automatic issuance of reports optimized for Income Tax, reducing declaration errors by 93%; 3) "Event Scanner" tool that monitors 17 types of corporate events and automatically calculates arbitrage opportunities with a recommendation accuracy of 83% since 2021; and 4) Priority access to the new blockchain platform that will reduce operational costs by 63% starting in 2025.