T+1 is coming 👀

From 28 May 2024, the new standard for settlement for any US-traded stocks will become T+1.

This means that when you sell a US-traded stock, your cash will be available to withdraw from Freetrade the next working day.

The changes will happen behind the scenes, so you can keep using your app as usual.

Orders for other stocks will continue to settle two working days after they’re made.

A reminder of how it all works :bulb:

Typically, orders settle two working days after they’re made. This is known as T+2.

So T = the day your order is executed.

When you execute a sell order, the proceeds go into your available cash as “unsettled cash”. At this point, the cash can be reinvested in the Freetrade app as soon as you like.

However, you can’t withdraw the cash into your bank until it settles 2 business days later. When this happens, the money leaves ‘unsettled cash’ and goes into your ‘withdrawable cash’.

The new T+1 settlement period will automatically apply to any trades executed on NYSE, NASDAQ, and OTC from 28 May 2024.

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Isn’t T212 instant?