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If I sell stocks, will I be able to withdraw cash from the proceeds that same day or will I have to wait until the T+3 settlement date? Does it depend on the brokerage?

  • It took me awhile to fully understand how settled funds really work in a cash account. I tend to trade stocks with high volatility, so from now on I will only buy with settled funds. I am skittish about opening a margin account, as it would complicates things for me and I am not a full fledged day trader. – user45085 Jul 12 '16 at 14:10
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No, you cannot withdraw the money until settlement day. Some brokers will allow you to trade with unsettled funds, but you cannot withdraw it until it is settled.

Think about it, when you buy stock you have to pay for them by T+3, so if you sell you actually don't receive the funds until T+3.

  • After a trade, my balance screen will show "cash to withdraw" "funds available to trade" "funds to trade using margin". That first category doesn't go up till third day. +1 – JoeTaxpayer Apr 20 '14 at 13:06
  • This looks to be exactly the case at my brokerage (Fidelity). – Craig W Apr 21 '14 at 15:00
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Depends on your account. If you have a margin account, then you can "withdraw" the margin, and it will get paid off/settled on T+3. However if it's a cash account then you will most likely need to wait. Call your broker and ask, each broker has different rules.

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    Withdrawing margin is different from withdrawing an unsettled amount. If the trade hasn't settled you cannot withdraw any unsettled amount. That would be like selling a house and asking for the money before settlement day. – Victor Apr 21 '14 at 21:19

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