What is settlement?
Updated this week

Settlement is the process of transferring the ownership of a particular stock and the corresponding cash between a buyer and a seller.

Due to the complexities of this process, UK, European, and US stock orders will typically settle 2 working days after being executed. This is known as T+2. However, from 28 May, US-traded stocks will typically settle after 1 working day, or T+1.

When you execute a sell order, the proceeds will go into your available cash as 'unsettled cash'. This can be re-invested in the Freetrade app as soon as you like.

However, until the cash settles approximately 1 or 2 business days later, you can't withdraw the cash into your bank account.

When the sale settles, the money will leave 'unsettled cash' and go into your 'withdrawable cash'.

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