T+1 settlements | Robinhood

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).

Keep in mind

Business days are Monday through Friday except for US Stock market holidays and half-days.

What’s the new settlement rule?

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).

Example

If you place a trade on a Tuesday, the transaction will settle on Wednesday.

What does this mean for you?

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.

What do you need to do?

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.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.