3 days to 2 days for funds to settle

[QuarterMillionMan]

I just got an email from Schwab about settled funds will be going from 3 days to 2 days, not sure if that's good or bad.

[disneysteve]

I just got an email from Schwab about settled funds will be going from 3 days to 2 days, not sure if that's good or bad.

Why would your funds settling faster be a bad thing?

[james.hendrickson]

Schwab is a professional outfit. The fact that it now takes two days for funds to settle instead of three means they are organizing their operations to make your funds available to you quicker.

According to the SEC, all trades must settle in T+3, or the trading day (T), plus three business days (+3).

It used to be that markets operated on a T+5 basis, but a decade ago the Feds changed the rules to make it T+3 instead of T+5. This made it so that firms didn't need to collect as much money in times of stress and made them more robust to market downturns.

The bottom line here is, Disneysteve is correct, the change is in your favor.

[Jluke]

Vanguard is doing the same...

it's a good thing. if you sell, you get your money one day sooner.

[QuarterMillionMan]

I see. I guess I was skeptical that maybe the professional traders were going to have some kind of advantage over me.

[Nutria]

I see. I guess I was skeptical that maybe the professional traders were going to have some kind of advantage over me.

I typically bought ETF shares on the same day that I initiated an xfer from the bank. Now I start the xfer a day early.