SpreadWise turns a complex options strategy into a simple, tax-aware borrowing solution. By constructing a synthetic loan using listed index options, clients can access low-cost capital with a fixed repayment due at maturity — all without triggering capital gains or transferring assets.
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SpreadWise loans are created using a box spread — a structured combination of index options that functions like a fixed-rate, zero-coupon loan. It’s a synthetic borrowing tool backed by institutional liquidity and cleared by the OCC.
Who is the ideal client for Spreadwise?
High-net-worth individuals, business owners, family offices, and clients with concentrated stock positions who need liquidity without triggering capital gains.
Why are Spreadwise's borrowing rates so low?
Box spreads are executed in one of the most liquid markets in the world — S&P 500 index options — where institutional lenders compete, driving borrowing costs close to risk-free rates.
Are my clients’ assets safe and do they need to transfer them?
Asset transfers are not required. Clients’ assets stay at their current custodian (e.g., Schwab, Fidelity), and SpreadWise integrates directly to facilitate the strategy.
Will this affect my client’s credit?
No. There’s no credit check, no reporting to credit bureaus, and the borrowing is fully collateralized by the investment portfolio.
How fast can clients receive funds?
Once approved and the strategy is executed, funds are typically delivered to the client’s account the next business day.
How much can a client borrow?
Depending on portfolio composition, clients may borrow up to: – at least 50% of equities – at least 70% of bonds (with portfolio margin) – at least 90% of Treasuries (with portfolio margin)
What are the risks?
While early exercise and forced liquidation aren’t a concern (due to European-style options), risks include market illiquidity during rare events and interest rate sensitivity on longer-term loans.
Can clients still trade while using SpreadWise?
Yes. Clients maintain full trading access to their accounts, including those used for collateral.
What fees does SpreadWise charge?
A flat 0.60% annual fee (billed monthly) on the borrowed amount.
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