Swiss bank and broker Swissquote is offering its clients a new opportunity to generate additional income.

"Swissquote clients can now lend their investments to reputable financial institutions to generate monthly income while continuing to receive dividends and retaining the right to sell their securities at any time," the company said in a statement.

Initially, the company will limit lending to stocks and exchange-traded funds, but plans to expand the range in the future.

A client's net return on borrowed securities can range from 1% to more than 5% per year with monthly payments, but is directly dependent on demand.

Swissquote stresses that participation in the program requires a clear registration and the acceptance of a contract that includes an explanation of the risks.

The Securities Lending option can be activated for the entire portfolio (available online), or certain securities can be excluded via customer service.

"Swissquote remains the client's partner throughout the entire process," the company says.

As part of the initiative, Swissquote has partnered with Sharegain, a company specializing in securities lending.