Withdraw options

Continuing the discussion from Withdrawals taking 3-5 days:

I really think Freetrade need to speed up this withdrawal funds part on the app. I was in need of cash so had to sell lot of my shares. Funds shows in account, so I can use this funds to buy more shares but I cant withdraw?

Is its liquidity issue within the business? Or Freetrade doesn’t want us to withdraw money out. If I can buy new shares I shud also be able to withdraw it.

1 Like

Is it in unsettled cash? not sure if any brokers let you withdraw unsettled cash.

2 Likes

This is because it takes time for the clearing house to settle the funds, this happens with every broker and it takes three days to clear.

I don’t think they can speed this up as they won’t allow you to take out unsettled cash.

3 Likes

Thankyou @DavidM and @Dave

Yes, I believe this is still unsettled cash from sales, but my question remains same, if I’m allowed to purchase new shares from this “unsettled cash” then I sould be allowed to withdraw to my account.

As far as other brokers are concern, it’s all about liquidity issue in brokerage system, it they sufficient cash they will authorize a quick withdrawal. Unsettled cash is guaranteed it’s just the process is slow.

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

@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

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

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.

1 Like

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 £12.95 per trade + 1% FX fee.
FT charge £0 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

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

Minus their £12 cut ( or whatever their ridiculous dealing charges are nowadays )

2 Likes

£12.95 I think. Which is coincidently exactly why I opened a Freetrade account :joy:

1 Like

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

1 Like

maybe, but paying £11 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.

:+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