Why cannot withdraw unsettled cash?

It would be very helpful.
If I sell stocks on Thursday I need to wait until next Monday to withdraw the profit and I get real cash on Wednesday. That is 6 days.
Does it cost something to Freetrade?
(And why can we re-invest unsettled cash?)

Weekends aren’t working days so probably shouldn’t be counted as such

I know, but if we could withdraw unsettled cash then we just needed to wait for the bank.

What is Settlement?

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Understood what it is.
In my understanding when we buy some stocks using unsettled cash Freetrade borrows us some money and gets it back after the settlement. So, why cannot do the same also for withdrawing unsettled cash?

What is exactly the difference between re-investing money and withdrawing money?

There is no borrowing because no payment is required until settlement.

You cannot withdraw this money as it is not yours just yet. There’s is a chance that the transaction could not be completed

But if the transaction will not be completed and in the meantime we invested on some other companies (we can always invest unsettled cash) how can Freetrade get money back?

The transaction will be completed. When you buy a share with ‘unsettled cash’ Freetrade will receive the payment from the sale of shares before being obliged to make the payment on the new shares. That is why they can allow you to trade on unsettled cash but prohibit you from withdrawing it.


Understood. Thank you.

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