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As alluded to in his final point, with IB, you can loan your stocks for people to short. This can yield you a substantial revenue stream for stocks with high short interest like TSLA. IB splits it 50/50 (fact check me on this) whereas I assume RH doesn’t even give you the option and uses it for their revenue stream.

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Tesla stock costs under 2% a year to borrow from IB to short it. (source: short TSLA, IB customer)

TFA says a gain of 7bp. I wouldn’t call that “substantial” in any sense of the word.

> This can yield you a substantial revenue stream for stocks with high short interest

(emphasis mine)

7bp is an average. The article also points out that the yield occasionally goes as high as 100% per year.

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