When you buy or sell shares, you enter into a contract to exchange shares for an agreed value with another party. The actual transfer of shares and cash is known as settlement, which takes place after the order has been processed.
All US markets available through Selfwealth use T+1 settlement (effective 28 May 2024). This means the settlement of a transaction occurs 1 trading day after the order is filled.
Do I need to have funds available when placing a buy order?
Yes. You must have the total cash value of your order — inclusive of any applicable brokerage costs — available in your cash balance before placing an order for an international stock.
How does settlement work when selling shares?
When you sell shares on an international market, brokerage and any applicable exchange fees (as shown on your contract note) will be deducted from the sale proceeds. You will receive the net proceeds after settlement.
Example:
You sell shares on a Tuesday. The trade settles on the next trading day — Wednesday (assuming no public holidays). Your USD balance will then be available at approximately 3:30 pm on Thursday.
Can I trade on unsettled international funds?
Yes. You can use proceeds from a recent international sale to buy additional stocks in the same international market immediately. For example, if you sell a US stock, you can use those funds to buy another US stock straight away. However, you cannot use those funds to buy Hong Kong or Australian stocks until settlement has been reached and a cash transfer to the relevant currency has been completed.