Settlement time cycle

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1

What is the settlement time cycle for the stocks bought in Invest account ?

Is it T+2 business days or depends on which market they are bought i.e UK /Europe has a different clearing time frame compared to US ?

2

Makes no difference in reality as settlement is a back office operational issue. So long as T212 allow you to trade on ā€˜unsettledā€™ funds/trades then you are not impacted.

But, yes, for the record standard European settlement is T+2. That does not mean every trade will actually settle (due to the nature of DvP and counterparties individual positions) but that (in T212s model) does not affect you. Standard US settlement is also T2. But, again, largely irrelevant unless you canā€™t trade on unsettled funds (like Stakeā€¦ but not FreeTrade or T212)

It may however affect withdrawals of cash

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3

Affects withdrawal :sob:

4

Yes. Very true. This is kinda logical given the stringent ā€˜client moneyā€™ rules the FCA has that effectively mean you canā€™t cross-subsidise one clients cash with anothersā€¦ therefore you HAVE to settle a stock sale to cash before withdrawalā€¦ thatā€™s the FCA not T212 to be fair. You ā€œcouldā€ top up youā€™re client monies pot with corporate cash but that just exposes T212. Itā€™s a business and safety and regulatory decision. Annoying. But fair.
Anyone old enough to remember Transact fine will know it was a similar storyā€¦ itā€™s not that they ā€œdidnā€™t perform client cash reconciliationsā€ (as the Citywire article incorrectly states) it that they effectively allowed cash withdrawals before actual settlement of the linked tradeā€¦therefore the client cash balances were incorrect according to the letter of the rules.

Now I feel old :poop:

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I wasnā€™t suggesting it was T212 haha I also know how it works. I was more pointing it towards the statement that settlement T+2 doesnā€™t really affect anything.

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Thank you for responses

My main query is when does the delivery/settlement of stock actually appears in your account after all the regulatory background work, which proves unequivocally for you to be the right full owner of the stock and you can withdraw it wherever and whenever you want. I understand you can sell it immediately on the same platform as a day trader scalping as Trading 212 allows it but I would prefer to be the rightful owner of the stock before selling it, hence this query.

As a general rule of thumb T+2 rule appears to the norm

Thanks

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