Can anyone help? The shares are sold and the proceeds were in my T212 account to withdraw, but now it’s telling me they need settle. How can the shares be sold, the money in my account to withdraw, but then it’s telling me they need to settle..
Markets don’t settle T0. Most of Europe I think is T+2.
What 212 allow is if you have a pending sell, then you can purchase a security without having to wait for the cash to settle.
To withdraw cash, you do have to wait for the trade to fully settle.
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This is in my ISA, I didn’t buy any security or even have an option to. Unless it’s automatic.
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You’re misunderstanding what a security is.
You sold something. It takes T+2 to settle. Then you can withdraw. That’s the rules everywhere.
What Dougal was explaining is that:
On many brokers, when you sell something, the money from that sale is not immediately available for you to buy anything else with, and you would have wait for it to settle, which usually takes 1-2 days. This is quite inconvenient, so T212 is special in that it allows you to use that money to buy something else immediately after a sale, i.e. “you can purchase a security without having to wait for the cash to settle”. (a “security” here simply means any asset you can buy through the broker, like stocks for example). Some other brokers also allow this, but not all.
Withdrawal, however, does require the cash to settle. So as everyone else is saying, just give it a couple of days, you’ll be able to withdraw.
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Thank you all for the replies, there was a gap in my knowledge and I’ve just done some research.
I’d not heard of the T2 system, but looking into it, in the USA it is the T1 as their system has been updated, the EU and LSE will be upgraded next year.
It’s amazing in the world of instant data, systems still have to balance themselves to cope and do all the checks.
But yes, it is good that T212 allow trading with the proposed cash, but you can’t withdraw it.
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Ok, so something I can’t find the answer on.
So, when I sell the shares, are they instantly put to securities for the 2 days to start, or does that only happen once I go to withdraw the money.
For EG, I sell today, leave it for 2 full business days, then withdraw, should the money clear straight away in that case?
Or once I click withdraw the process starts then?
Thanks .
You just sell, and it automatically settle in 1-2 days and you’d be able to withdraw at any point after that (or re-use the funds to buy something and the process repeats).
You don’t need to click withdraw to trigger the process.
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