Delays in withdrawals and settlements

Help 👋
61

Sorry that’s not how it works. This would cause serious issues to the financial system if allowed. Unsettled cash is not “guaranteed”

Investing money that you may need urgently is not advisable

5 Likes
62

@J4ipod94 Thank for your advice. :+1:

Correction I never mentioned in my original post that I invested money that I urgently needed.
I needed cash urgently is not the same, the investment are back from early 2019.

That said, I understand and accept the fact I have to wait for the clearance of my funds


Once again, I would like to thank everyone who replied to my post. I am slightly upset as it will take further few days to request funds and authorization from Freetrade with withdrawal
 I guess it’s a week+ timeframes mindset for withdrawal in future.

1 Like
63

I am new to this app - my investments are with Hargreaves Lansdown. I guess you get what you pay for. HL will return cash the next working day. Proceeds of sale will be returned to your bank account by HL immediately on settlement.
Shortly after I opened my Freetrade account I withdrew a small amount of cash just to test the system. Instruction on 3 Sep; received 7 Sep (includes a weekend)
Yet depositing money is instantaneous.

1 Like
64

The broker doesn’t have the money while it’s unsettled. Every stock market works the same, after a share is “sold”, the money will settle after 2/3 days depending on jurisdiction. Until the transaction is settled, there is a chance they could default on the purchase (or you fail to deliver the share).

If you are allowed to purchase new shares from the unsettled cash (I’ve never tried, but I suspect you can’t in reality), then your broker will effectively be giving you a line of credit in that case.

2 Likes
65

Both the sell, which takes 2 days to clear, and the purchase of nee stock will be handled by the same broker & clearing house. The broker post margin to cover the risk, if FT let you have your cash before it was settled FT would have to post this amount as collateral, this would cost a fortune and like @ralf said is basically a line of credit.

HL charge ÂŁ12.95 per trade + 1% FX fee.
FT charge ÂŁ0 per trade + .45% FX fee.

A market exists to offer different solutions to different customers. Generally most good advice is not having money tied up in investments so close needing the funds.

1 Like
66

Not how my HL account works.

Shares sold on 03 Sep, cash ‘cleared’ for withdrawal on 08 Sep = 3 days. Cash received in my bank account same day, provided you ask before lunchtime, next day if after 12.

Same as Freetrade.

1 Like
67

Minus their ÂŁ12 cut ( or whatever their ridiculous dealing charges are nowadays )

2 Likes
68

ÂŁ12.95 I think. Which is coincidently exactly why I opened a Freetrade account :joy:

1 Like
69

True. I was just talking about the cash availability; perhaps should have been clearer. :+1:

1 Like
70

maybe, but paying ÂŁ11 per trade just to get money out in 1 working day instead of 2 working days does not seem worth it :grinning_face_with_smiling_eyes:
I have used HL for years and with them you definitely don’t get what you pay for.

71

:+1:. To be fair I did sell some funds from HL recently and the whole process from sale to receiving the funds was very slick.

1 Like
72

What about cash that was in the account for a long time and requested for withdrawal? shouldn’t this be immediate?

73

Hi all - Apologies upfront if this thread has been asked many times, I haven’t found anything on the forum that answers my queestions.

Issue
I cannot seem to withdraw money from Freetrade, it has nothing to do with selling stocks and waiting for them the fund to clear. I have funds in ‘Total Cash’, but ‘Withdrawable Cash’ isn’t highlighted and has £0.00 in it. I have funds in Total Cash (for investing) but I cannot withdraw this.

  1. How do I go about activating ‘Withdrawable Cash’?
  2. Do I have to sell stocks to do this (I have sold stocks before but I don’t believe the money displayed in withdrawable funds, might have that wrong though)?

I have emailed Freetrade (wait 3 days) and the Bots they use are pretty pointless.

Is there something I am missing here?

Hope you guys and gals can shed some light :pray:

74

Do you have scheduled/queued orders that block the cash from being withdrawable?

1 Like
75

If you have sold any shares lately then it takes a few days to settle, your money might be at the unsettled cash stage at the moment. Only when your money is showing as withdraw-able cash stage can you withdraw the money back to your bank account.

76

Hi,
No nothing blocked.
I can’t understand how you can have money in total cash, but then when you go to withdraw option, £0.00 balance shows, do no option to withdraw?

77

Total cash is added up from 3 separate categories.

  • Withdrawable cash
  • Unsettled cash
  • Reserved cash.

If it’s not in withdrawable then which category is it in?

1 Like
78

Is there a reason the withdrawable cash figure would decrease or disappear if no trades are conducted?
I.e. withdrawable cash displays ÂŁ100 Monday and ÂŁ0 Wednesday.
Total cash remains the same but the withdrawable has gone back to unsettled.

79

Nothing on reserved section? if you put inplace a limit buy then withdrawable amount will get reduced. If you haven’t done so then contact FT support.

80

Yeah, nothing reserved. Weird eh? Never had settled go back to unsettled
 I contacted them today, just awaiting a reply.