T+1 settlements
As of May 28, 2024, the new standard settlement for an open trade in your Robinhood investing account is now the next business day after the trade (T+1). The past settlement for US stocks used to be 2 business days after the trade date (T+2).
Business days are Monday through Friday except for US Stock market holidays and half-days.
This is an industry-wide change for US stock trades because of the recent rule amendments from the US regulators, the Securities and Exchange Commission (SEC), and FINRA. This rule change makes the settlement cycle 1 day shorter. This means the difference between the date you trade a security and the date the transaction settles is now shorter. As of May 28, it changed from T+2 to T+1 (within 1 business day after a trade).
If you place a trade on a Tuesday, the transaction will settle on Wednesday.
You will be able to use trade proceeds for cash withdrawals 1 business day earlier (T+1). When using a non-margin account, the sell proceeds are now available 1 business day earlier to buy securities. Keep in mind that the standard settlement date change won’t impact your account balance.
This rule change requires no action on your part. The new T+1 settlement period is automatically applied for any new US stock trades executed in your Robinhood investing account on or after May 28, 2024.