Posted on Monday, 27th April 2009 by admin
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etrade seems to always have some delay on getting your cash in/back based on 3-5-7 business days. what firms get your money back the fastest so you can adjust as the market adjusts? FAST, that is.
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etrade seems to always have some delay on getting your cash in/back based on 3-5-7 business days. what firms get your money back the fastest so you can adjust as the market adjusts? FAST, that is.
Small Business Web Hosting
Tags: Brokerage Firm, Business Transaction, Online Business
Posted in Investing | Comments (5)
April 29th, 2009 at 10:19 pm
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T + 3 is the norm for stocks
Trading day PLUS 3 more business days.
For options, its T + !
Trading day PLUS the account settles the very next business day.
These are standard throughout the trading business and profession.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
May 1st, 2009 at 3:58 am
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I find this a strange question from a UK point of view. You MUST get your money on settlement day, if, of course the stock has been delivered. So if your stock is held electronically and you havent re-invested, if you deal T+1 you should/must have free monsy the day after the trade. If the trade is certificated then we always deal T+10 as a minimum. You may experience a dleay in delivery by the market on a purchase (and subsequent delay in payment if you are selling that stock), I suppose due possibly to short selling or the chain breaking down somewhere, but this is the exception. If you buy T+10 and sell on the day before settlement T+1 then we try to use the same market maker which helps. Sometimes this is not possible, say for example if there is a better price with another MM or the original MM is not in size. We have, possibly like you, rules of Best Execution. As well as best price this does include best settlememt etc. but it is a difficult area for brokers. It is exacerbated by the fact that the big clearers, for example, Pershing are a law unto themeselves and also it is in their financial interest if the settlement is slow, as they will just charge the broker/client interest.
So if you dont get your money on settlement date (free money) ask why and if there is no good/valid reason seek compensation.
This is an interesting question I would like to look at it closer; if you care to, why not contact me at
May 2nd, 2009 at 9:42 am
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All broker/dealers are subject to the same rules and regulations so there can be no differences in their requirements.
The payment of monies and the lending of monies is covered by the rules of the Federal Reserve, which all banks and brokers must follow, No broker can change or alter these rules
Your trying to learn to trade, you should take the time to learn the rules & regulations. You’ll never be decent trader/investor without know the rules.
May 5th, 2009 at 1:20 am
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What nobody said is correct, but if you are trading in a margin account the funds will be available to trade with, you just couldn’t draw out that trades cash for 3 days (stock… I don’t even know what security has a 7 day close)
May 5th, 2009 at 5:59 pm
In the U.S. brokerage firms are restricted by SEC rules and regulations. T+3 is the standard for settlement of stocks. Other investments can take longer. I don’t entirely understand what you are trying to accomplish though.