The timing of funds arriving from sold stocks varies greatly: An analysis of the delivery systems of Taiwan stocks and US stocks.

The number of people investing in the stock market continues to increase, and many newbie investors want to know: How long after selling stocks can they receive funds? What are the differences between the delivery systems of the Taiwan stock market and the US stock market? This article will provide you with detailed answers to these questions.

Comparison of Delivery System between Taiwan Stock Market and US Stock Market

Taiwan Stock Delivery System

The Taiwan stock market currently adopts the "T+2" Delivery system. "T" represents the trading day, and "+2" indicates that one must wait for two working days to receive the proceeds from the sale of stocks. For example, if you sell stocks on Monday, you will receive the money on Wednesday.

To enhance the efficiency of fund utilization, the Taiwan Stock Exchange launched the "T+0" system in May 2022. This new system allows investors to access funds from stock sales on the same day, but in reality, it involves borrowing from brokers, requiring an interest payment of about 5%. Currently, only certain brokers such as Fubon Securities and Yuanta Securities offer this service, and investors need to apply on their own.

US stock Delivery system

The US stock market also adopts the "T+2" Delivery system. It is worth noting that the US stock market previously used the "T+3" system, which was changed to "T+2" in September 2017.

Important Information for Trading US Stocks

In US stock trading, different types of accounts have different regulations:

1. Cash Account

Cash account requires investors to wait for the funds Delivery (T+2) before making the next trade. If a trade is made while the funds are not delivered, there may be a 90-day account restriction.

Ways to avoid account restrictions:

• Increase account funds before trading
• Open margin trading account

2. Margin Trading Account

If you open a margin trading account and the total assets in the account exceed $25,000, investors are not subject to the T+2 system restrictions and can trade freely. Margin trading accounts offer more flexible trading options, such as short selling and borrowing trades, but the account opening threshold is relatively high.

Quick Ways to Obtain Funds for US Stock Trading

For investors looking to make small investments and enjoy a T+0 system, Contracts for Difference (CFD) are a worthwhile option to consider. CFDs allow investors to trade on price differences without actually purchasing the underlying asset, enabling two-way trading and the use of leverage. Typically, deposits and withdrawals for CFD trading are credited on the same day, with some platforms like Mitrade even offering fee-free withdrawal services.

Time for US Stock Purchase Fund to Arrive

When buying US stocks, funds are usually credited on the same day. However, the specific situation depends on your trading method:

1. Trading through U.S. stock brokers: Almost instant crediting
2. Trading through Taiwan stock brokerage with a delegated order: Usually, you need to deposit into the bank before 8 PM on the same day to conduct trading in US stocks on that day.

Choosing the trading method and account type that suits you can help investors manage their funds more effectively and seize investment opportunities. Regardless of the chosen method, be sure to understand the relevant regulations and risks, and make appropriate financial plans.