You can trade it immediately but can't transfer it out until it settles.It varies by brokerage, but a poster above points out that Schwab appears to not allow the money to be withdrawn until after it has settled.I guess I sell stocks/ETFs so rarely that I didn't really pay attention to this. So, if I place a sell order and the etf is sold, I cannot access the money until tomorrow? I thought I would have access to that money immediately - or does that place me in danger of good faith something (which another poster recently was judged to have done with Fidelity)?USFR and SGOV and BIL are all good MM-like ETfs, but I can't see how they will get money out faster for paying bills, they have T+1 settlement too.
Which is early the next morning after you sell an ETF, a conventional mutual fund t-bills, or a money market mutual fund. All are T+1.
If you need same day access, just enable margin on your brokerage account.
My new truck came in unexpectedly early last month and I wanted to get it that same day they called because I was busy the next couple of days and then it was the weekend. So mid-day I instant transferred the shortfall of $45K from taxable to checking and entered enough sell orders on t-bills and money market mutual funds I had put away for the truck purchase to cover that. The $45K margin loan was repaid the next morning when those trades settled. Yes it cost me $16 in margin interest but I got my truck same day versus 4-5 days later. Big whoop-dee-do, although I'm sure that $16 ($12 on an after-tax basis) would be a crushing experience for some here.
Statistics: Posted by MnD — Tue Aug 06, 2024 4:53 pm — Replies 7 — Views 392