I have been using Interactive Brokers for a few months now and keep having problems with their delayed settlement of funds. After the sale of a security it takes three days before I have access to that money again. IB's customer service tells me the only way to expidite the transfer is to sign up for a margin account. Unfortunatly I am only 20 and you have to be 21 for a margin account.

So my question is do any of yall know of an online broker that doesn't take so long to refund the account following a sale? I use to use Etrade and can't remember if they have a hold period or not.

TIA

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Posted by bovine1

Walnut Ridge,AR via Tallulah,LA

Member since Dec 2004

1280 posts

Posted on 6/24/11 at 7:42 am to TheDirty1

I use IB but I have a margin account so it's not an issue. I've traded lots of places and T+3 is pretty standard I think.

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Posted by Chris Farley

Regulating

Member since Sep 2009

4180 posts

Posted on 6/24/11 at 8:01 am to TheDirty1

I don't think you necessarily have to be 21 to have a margin account. Call around (Etrade, Scottrade, Schwab) and ask their policies on that.

Also, 3 day settlement is an industry wide standard, the only way you will get around it is with a margin account.

Do you understand how the 3 day settlement works? If you sell a stock, you can use that money to buy another, BUT you cannot sell that stock (that you just purchased) until the settlement period. You have access to the funds, just not to withdraw or place a day trade with.

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Posted by TheDirty1

Member since May 2011

363 posts

Posted on 6/24/11 at 1:53 pm to Chris Farley

Thanks for the replys. IB only shows my buying power to be what is fully settled. I really like IB and would perfer not change. What I may have to do is trade under my dads account so I have access to a margin account and transfer everything back over when I turn 21 in Feb.

I will have to call around and see about the margin account requirements.
Thanks for the help

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