
Receiving funds from selling stock can take anywhere from a few days to several weeks, depending on the type of stock and the brokerage firm you're working with.
Typically, it takes 3-5 business days for the funds to be transferred to your account after the sale has been confirmed. This is because of the clearing and settlement process, which involves verifying the ownership and authenticity of the stock.
During this time, the money will be held in a holding account, waiting for the settlement date to be reached. This is a standard procedure to ensure that all parties involved in the transaction are satisfied.
In some cases, the funds may be available in your account as soon as the next business day. This is often the case with electronic stock transfer, which allows for faster processing and settlement.
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Understanding T+1 Settlement
The T+1 settlement rule has streamlined the process of trading stocks, bonds, ETFs, and certain mutual funds, allowing investors to access their funds one day sooner.
Under the old T+2 system, investors would have to wait two days to officially complete a sale, but with T+1, funds are now available on the next business day.
For example, if you sell shares of a stock on a Thursday, the funds would be available on Friday, giving you quicker access to your cash.
This change may seem small, but it can make a big difference in liquidity and investment planning, especially for those who trade regularly or need quick access to funds.
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Funds Withdrawal Process
The funds withdrawal process can be a bit of a mystery, but it's actually quite straightforward. Under T+1, you can access your cash the next business day after selling a stock. ACH transfers can still take one to three business days, but wire transfers can be completed the same day.
If you need the money quickly, wire transfers are an option, but be prepared for fees – up to $35 from both the sending and receiving institutions. Settlement is now T+1, which means that if you execute a trade on Monday, it'll settle the next day on Tuesday.
The funds from your share sale will normally be sent to your account on the 3rd business day following the day your shares are sold. A trade completed on Friday won't settle until the following Monday, assuming that day isn't a holiday.
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Post-Sale Stock Transfer and Payment
Selling stock can be a straightforward process, but it's essential to understand the timeline involved in transferring funds to your bank account.
It takes about a week for two reasons: the settlement period for a stock sale and the clearing period for the transfer.
The settlement period starts immediately after you place your sell order, which can be done on Monday at 8am.
Behind the scenes, the clearing firm arranges to finalize your transaction two days hence, which means your cash won't actually settle into your account until Wednesday.
Once funds are available for withdrawal, which is usually Wednesday evening, you can move them to your bank.
This process takes about 3 business days.
Here's a sample timeline to help you visualize the process:
- Monday at 8am: You place your sell order.
- Wednesday: Your cash settles into your account.
- Wednesday evening: You can move funds to your bank.
- Next Monday: Funds arrive in your bank account.
Keep in mind that this timeline may vary slightly depending on your specific situation, but this gives you a general idea of what to expect.
Transaction Types and Timing
Selling shares can be a bit of a process, and one of the main reasons it takes a few days to receive the funds is because of the way transactions are handled.

The Australian Securities Exchange (ASX) acts as an intermediary between buyers and sellers, often referred to as a 'clearing house'. This helps to eliminate the risk of a buyer or seller defaulting on their obligations.
It takes a few days for all the transactions to be completed, and an office of support staff is needed to do this, even though the process is largely automated.
Transactions take a few days to settle because of the technical process involved, which can't be rushed.
Frequently Asked Questions
What is the 3 day rule in stocks?
The 3-Day Rule in stocks is a settlement rule requiring transactions to be finalized within three business days after the trade date. This rule affects payment and order processing, ensuring traders have sufficient funds or credit to cover purchases by the settlement date.
Sources
- https://www.zacks.com/personal-finance/article/2354795/how-long-does-it-take-to-get-your-money-after-selling-stocks
- https://help.stockpile.com/en/articles/449319-when-will-my-money-arrive
- https://www.moneydigest.com/1606939/how-fast-withdrawal-brokerage-selling-stock/
- https://www.sellmyshares.com.au/fees/when-do-i-get-money-after-selling-shares/
- https://www6.royalbank.com/en/di/hubs/investing-academy/article/can-i-withdraw-my-money-as-soon-as-i-sell-a-stock/kkr40cjr
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