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 havenāt 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 hasnāt been mentioned on any of their notices. I was also told that Aura Energy hasnāt settled, thatās why I canāt withdraw and been told that Aura Energy āis a very illiquid stockā. Gosh what does that mean and where does this come from. Itās now more than 11 working days I still canāt withdraw my money. Anyone experienced this dilemma before?
I havenāt 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 theyāre less popular and less frequently traded.
As thereās a lot of plumbing/things happening in the background when we trade and various parties that need to settle trades, this issue doesnāt surprise me. Thankfully, it is rare. It surprises me that itās taken this long, however. As unfortunate as it is, I think you just need to be patient. Iāve always found to be open and honest. They want you to get your money/have a good experience and trade with them again. Theyāve 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.