How many days do you have to wait to get the proceeds from selling US stocks? Key points investors need to know in 2023

Short Answer for Beginners

When it comes to selling stocks in the U.S. market, investors need to understand the settlement process because the time to receive funds varies depending on the asset type you hold. The fact is, not all investments clear funds in the same timeframe.

1. Common Stocks of Registered Companies: T+3 Business Days

If you invest in regular stocks on Nasdaq or New York Stock Exchange (NYSE), the system uses what’s called “T+3 Settlement” for transaction clearing.

How the timing is counted

• T = the day you sell the stock
• +3 = three business days after
• Example: If you sell stocks on Monday, the funds will be transferred to your account on Thursday

Reasons for the 3-day wait

The U.S. stock market must go through securities processing, account verification, and converting paper documents into digital systems. This process is called “Dematerialization” and takes time to process.

Factors that may change

• (Holiday Calendar)
• Your broker’s policies
• Transfer method (Online banking or other channels)

2. Bonds and Debentures: 2 Business Days

Investing in corporate bonds (Corporate Bonds) or U.S. government bonds offers faster settlement times.

Payment process

When bonds reach maturity or you decide to sell, the issuer transfers the principal and accrued interest to your broker. The broker then transfers it to your personal account within 2 business days.

Reason for speed

Bonds are lower risk than common stocks, and the approval process is simpler. Therefore, the system can clear funds faster.

3. Equity Funds: 3-5 Business Days

Holding equity mutual funds typically involves a settlement period of about 3 to 5 days because fund managers need time to evaluate the net asset value (NAV) and process the transfer.

Factors affecting the timeframe

• Type of fund (Focus-only vs. mixed funds)
• Management’s trading policies
• Bank holidays

4. Derivatives (Derivatives): 2 Business Days

Options (Options) and futures (Futures) are classified as “derivative instruments,” which have different settlement mechanisms from regular stocks.

Process

When you sell derivatives, your broker matches your order with a buyer. Funds will enter your account within 2 business days.

How to Invest for Short-Term Profits

If you want a platform with less downtime and can close positions quickly, there are several options:

Day Trading (Day Trading)

• Speculate on short-term price volatility
• Suitable for experienced traders who understand risks
• Requires close market monitoring

Short Selling (Short Selling)

• Sell stocks you do not own, expecting prices to fall
• Requires additional knowledge of borrowing and repayment mechanisms
• Higher risk than regular buying

Option Trading (Options Trading)

• Buy the right to buy or sell stocks in the future
• Valuable when you can predict market direction
• Requires further study

CFD Trading (CFD)

• Trade based on price changes without owning the actual asset
• Leverage (Leverage) amplifies returns
• Can profit within the day or hours
• Higher risk than traditional investments

Benefits of Selling Stocks and Receiving Funds Within a Day

✅ Improved liquidity: You can quickly convert assets into cash, especially in emergencies.

✅ Opportunities for speculation: Take advantage of short-term volatility—buy low, sell high—to profit in a short period.

✅ Diversification: Sell some stocks to hedge against risks from a single investment.

✅ Portfolio adjustment: Sell underperforming stocks and buy promising ones.

✅ Loss prevention: Sell when prices drop to minimize further losses.

Time Comparison Table for Receiving Funds by Investment Type

Frequently Asked Question: Can I buy stocks on the same day I deposit funds?

Yes, if you use a broker that allows real-time deposits. Some systems let you use the funds immediately after deposit, while others may require a waiting period.

Check with your broker:

• Deposit channels (Bank, Debit/Credit cards, others)
• Clearing time
• Deposit fees
• Immediate fund usage policy

Key Points About the U.S. Market Settlement System

🔹 Trading hours: The market is open Monday to Friday, 09:30 - 16:00 (EST). Orders placed outside these hours are processed the next day.

🔹 Settlement period for stock payment: When you buy stocks, you must transfer funds within T+2 days.

🔹 Digital system: Most stocks are recorded digitally, not in paper certificates, making transfers easier and faster.

🔹 Additional fees: Some brokers may charge transfer fees; check clearly.

Summary: How many days to get money after selling U.S. stocks

Response depends on the asset type:

• Common stocks: 3 business days (T+3)
• Bonds: 2 business days (T+2)
• Equity funds: 3-5 business days
• Derivatives: 2 business days (T+2)
• CFD and short-term trading: possibly within 1-2 days or faster

For investors seeking speed, understanding the settlement structure and choosing appropriate investment tools are crucial. However, always remember that all investments carry risks. Study thoroughly and develop an investment plan suitable for your situation.