I bought a UK stock - Aura Energy on 6th April 2021 and sold it on 9th April 2021, and went on to buy 2 more stocks and sold them. I assumed I would be able to withdraw my money in 2 to 3 days as per Freetrade regulation, but alas up to now I still haven’t been able to withdraw 29/04/21. I have been on the case with Freetrade the last 2 weeks and have been told that it might take longer than 2 to 3 days to settle. And when I queried this further I was finally told a few days ago that Liquid stocks take longer to settle; which hasn’t been mentioned on any of their notices. I was also told that Aura Energy hasn’t settled, that’s why I can’t withdraw and been told that Aura Energy “is a very illiquid stock”. Gosh what does that mean and where does this come from. It’s now more than 11 working days I still can’t withdraw my money. Anyone experienced this dilemma before?
I haven’t personally encountered this specific issue. However, illiquid stocks obviously exist; some are simply traded far less frequently than others. What I have experienced is limit orders failing to execute for extended periods when a price has been reached. Precisely because they’re less popular and less frequently traded.
As there’s a lot of plumbing/things happening in the background when we trade and various parties that need to settle trades, this issue doesn’t surprise me. Thankfully, it is rare. It surprises me that it’s taken this long, however. As unfortunate as it is, I think you just need to be patient. I’ve always found to be open and honest. They want you to get your money/have a good experience and trade with them again. They’ve no real incentive to slow it down - even if it was in the millions - as the trust users have in the company is paramount to their business continuing to do well.