Cash really takes 5 business days to settle?
Summary of Main Problem and Solutions Discussed:
- The user, Beaverius of Rome, is frustrated that an electronic funds transfer to their Fidelity account took longer than expected, with $0 available for trading six business days after the transfer was reported as received.
- Fidelity explained that Electronic Funds Transfers (EFTs) typically take 2 to 6 business days to complete the collection process and become available for trading.
- Fidelity allows trading with uncollected cash in unrestricted accounts, but users must hold those assets until the cash completes the collection period to avoid incurring a Good Faith Violation (GFV).
- To avoid the collection period, users can opt to deposit funds via bank wire or direct deposit, which Fidelity does not charge for, although the user’s bank may have fees.
Here’s the full thread
Fidelity account says my electronic transfer was received on 4/21 – it’s now 4/27 and still have $0 available for trading. Really five business days? Pretty ridiculous Fidelity can transfer retirement accounts faster than vanilla cash. Pretty sure I’ll just switch brokers again. 5 business is ridiculous
# 💸︱customer-service
Hi @Beaverius of Rome, thanks for your question.
Currently, deposits from Electronic Funds Transfers (EFTs) take 2 to 6 business days to complete the collection process and become available for withdrawal. We do, however, allow you to trade with uncollected cash immediately in unrestricted accounts, subject to some limitations.
When placing a trade with uncollected or unsettled funds, you’re required to hold those assets until the cash used for purchase completes the collection/settlement period, otherwise, you’ll incur a Good Faith Violation (GFV). If you incur 3 GFVs in a rolling 12-month period, your account will be restricted to settled funds for 90 days, and you’ll have to wait for the collection process to complete before placing a trade.
Learn more about cash trading violations and how to avoid them here:https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations
Please let me know if you have any other questions!🟢
I forgot to mention that you can avoid the collection period by depositing via bank wire or direct deposit. Fidelity doesn’t charge a fee for incoming or outgoing wires, but your bank may incur a fee. Learn more about how to wire to Fidelity here: https://www.fidelity.com/customer-service/choose-eft-or-bank-wire 🟢
6 business days?????? Wow – so you guys straight up lie to new customers
What a complete joke. Should be illegal for a billion dollar company to freeze people’s money for over a week. SCAM
NO WHERE on your site does it say 6 business days to settle cash, because you guys KNOW not a single person would enlist with Fidelity given that information. What a pathetic bait n switch