How Long Does It Take to Get Money From Stocks?

Accessing funds after selling stocks is not immediate and involves several distinct stages. Understanding these steps helps manage expectations for when funds become available in a bank account.

Understanding Trade Settlement

When shares of stock are sold, the transaction does not instantly result in available cash. Instead, the trade must first undergo a process known as settlement. Trade settlement is the official exchange of securities for cash between the buyer and seller.

The standard period for most stock trades to settle in the United States is “T+2,” which stands for Trade Date plus two business days. This means if a stock is sold on a Monday, settlement typically occurs on Wednesday, assuming no holidays. If the sale happens on a Friday, settlement takes place on the following Tuesday, as weekends are not counted as business days. This T+2 rule is a regulatory standard designed to allow time for transferring ownership and funds and to mitigate market risk.

Until settlement concludes, funds from the stock sale cannot be withdrawn from the brokerage account. The brokerage account will typically show a “pending” credit. If a public holiday falls within the T+2 window, it extends the settlement period by one additional business day.

Transferring Funds from Your Brokerage Account

Once a stock trade has successfully settled, the proceeds become available for withdrawal from your brokerage account. The next step involves initiating a transfer from your brokerage to your bank account. Several common methods exist for this transfer, each with its own speed and cost implications.

Automated Clearing House (ACH) transfers are a widely used and generally free method for moving funds between a brokerage account and a linked bank account. After the brokerage processes the withdrawal request, an ACH transfer typically takes 1 to 3 business days for the funds to appear in the receiving bank account. This method is convenient for routine transfers where immediate access to funds is not a necessity.

For situations requiring faster access to funds, wire transfers are an alternative. Wire transfers usually complete within the same business day or by the next business day, depending on when the request is initiated and the receiving bank’s processing times. However, brokerages and banks typically charge a fee for outgoing wire transfers, which can range from approximately $15 to $30 per transaction. This fee covers the expedited service and direct nature of the fund movement.

Another option for withdrawing funds is requesting a physical check from the brokerage. This method is generally the slowest due to mailing times and the time it takes for the check to clear once deposited into a bank account. A check could take anywhere from several business days to over a week to fully process and for the funds to become accessible.

Key Factors Affecting the Overall Timeline

Several elements beyond standard settlement and transfer periods can influence the total time to receive money from stock sales. The brokerage firm’s internal processing times for withdrawal requests can vary, adding a day or two before the chosen transfer method, such as an ACH or wire, is initiated. This internal processing is separate from the trade settlement period.

Once funds are sent from the brokerage, the receiving bank also has its own procedures for processing incoming transfers. For example, while an ACH transfer might be initiated by the brokerage, the bank must receive and post the funds to the account, which can sometimes extend the overall timeline.

Weekends and public holidays consistently impact the timeline, as most financial transactions, including trade settlements and fund transfers, only occur on business days. If a transfer is initiated on a Friday, it will not begin processing until the next business day, pushing back the receipt of funds.

For new brokerage accounts or first-time withdrawals, some firms may implement temporary holds or require additional verification steps before releasing funds. These measures are typically in place for security purposes and to comply with anti-money laundering regulations, potentially adding several days to the initial withdrawal process. The type of account can also play a role; for instance, funds held in a cash account are generally available for withdrawal once settled.