Settling shares

[dtrom1984]

Hi

Hoping someone can help. I am trading US stocks (from the UK) with Interactive Investor. When I sell a stock I have to wait for the sale to go through before I can use the funds to purchase other stocks. Sometimes a few days. Is there a way around this, so as soon as I have sold stocks, I can use that money to immediately buy other stocks? Without adding more cash to my account. Almost like committing to a trade, executing but paying for it later (i.e. when other stock sales have cleared)..

Thank you

 

[Rufus_Leakey]

It sounds like you are looking for a margin account.

Here are some to look at.

https://brokerchooser.com/best-brokers/best-lowest-margin-stock-brokers/united-kingdom

 

[BigDeal]

Hoping someone can help. I am trading US stocks (from the UK) with Interactive Investor. When I sell a stock I have to wait for the sale to go through before I can use the funds to purchase other stocks. Sometimes a few days. Is there a way around this, so as soon as I have sold stocks, I can use that money to immediately buy other stocks? Without adding more cash to my account. Almost like committing to a trade, executing but paying for it later (i.e. when other stock sales have cleared)..

Not all brokers create the restriction you mention (when you are a UK trader). I currently use IG and Trading212 for UK and US share trading , and both of them allow you to use unsettled funds to make new purchases. Maybe ask ii why they have that retriction when competors don't. I think US traders have to consider a margin account, as mentioned by @Rufus_Leakey, but that costs, because that is borrowing funds to trade.

 

[Rufus_Leakey]

I think US traders have to consider a margin account, as mentioned by @Rufus_Leakey, but that costs, because that is borrowing funds to trade.

With a margin account, you don't normally have to pay extra if you just use funds from an instant settlement. For example,

Cash vs. Margin Account - Firstrade

Learn about the primary differences of a margin account versus a cash account.

www.firstrade.com

You may also trade in a margin account with your own cash. No extra interest or fees will be charged if you do not borrow money from Firstrade or exceed your cash balance. Trading in a margin account would allow you to use unsettled funds; this will avoid all the settlement date related violations that could happen in a cash account.

 

[BigDeal]

Ah thanks. Didn't realise that. Must say it seems so much easier trading in the UK; there seem to be so many more rules and resturctions for US investors and traders