Does your broker forbid withdrawals till the trade settles??

O

Option Trader

See the message below I got from my broker regarding trying to withdraw funds, that requires a 3 day wait. Is this something knew? I have never had this problem before!

We have received your request for withdrawal. However, due to a recent trade in your account, we will not be able to process your request until the trade settles. Just a reminder, all stock trades take 3 business days to settle and all options and futures trades take 1 business day to settle. Your request will be processed on the settlement date (06/11/09) of these recent trades.

Feel free to let me know if you require any additional assistance in this matter.

Best regards,
 
I don't remember if it was IB or TS, but I was unable to withdraw the amount that was tied up in the unsettled trades. I was allowed to withdraw the difference without waiting.
 
I don't know of any B/D that allows you to withdraw trade proceeds before settlement. Cash in your account or available margin can be withdrawn.
 
With IB & TD Ameritrade, my quite clear recollection is I have been able to draw funds freely, and that TD Ameritrade had said they would merely charge interest over those few days, which would be fine if at least the broker would offer this!
 
Its the same with some F/X firms (although trades in f/x settle t+2).

I think the policy is ok, but i don't know any firm that reports this at all (difference between valuation date vs. settlement date) - so its a bit tricky to keep track of whats there already and what not. There is definitely room for improvement.

In general i think these settlement procedures are a bit antique in the IT age.
 
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