How Long Does It Take for Cash to Settle Fidelity?

If you are a Fidelity customer, you might be wondering how long it takes for cash to settle. In this article, we will explain the settlement process and provide you with a timeline for when you can expect your funds to be available.

Understanding Settlement

When you buy or sell securities, there is a period of time between when the trade occurs and when the funds or securities are exchanged. This period is known as the settlement period. During this time, the trade is processed and cleared, and the securities or funds are delivered to the appropriate parties.

At Fidelity, the settlement period for most trades is two business days, also known as T+2. This means that if you buy or sell a security on Monday, the settlement date will be Wednesday.

Cash Settlement Timeline

If you are selling securities and receiving cash in your account, the settlement process typically takes two business days. Once the settlement date arrives, the cash will be available in your account for withdrawal or to purchase other securities.

If you are buying securities with cash, the settlement process also takes two business days. However, during this time, the cash will be in a pending state, and you will not be able to withdraw it or use it to purchase other securities until the settlement date.

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It is important to note that some securities, such as mutual funds and bonds, have different settlement periods. For example, mutual funds typically settle on the same day as the trade date, while bonds can take up to three business days to settle.

Avoiding Settlement Violations

It is essential to be aware of settlement violations and how to avoid them. A settlement violation occurs when you sell a security before the funds from a previous sale have settled. This is known as a free ride violation, and it is prohibited by the Securities and Exchange Commission (SEC).

To avoid settlement violations, it is important to keep track of your settled and unsettled funds. Fidelity provides you with a tool to monitor your cash settlement status, which you can access through your account dashboard.


In conclusion, the settlement period for most trades at Fidelity is two business days, and this applies to both buying and selling securities. Cash will typically be available in your account on the settlement date, and it is important to be aware of settlement violations to avoid any potential issues.

By understanding the settlement process and keeping track of your settled and unsettled funds, you can ensure that your trades go smoothly and that you avoid any unnecessary violations.

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