Someone recently asked me, "How long does it take to get the money after selling stocks on Friday?" This is actually a pretty common question, especially for stock market beginners. I realized that many people are not very clear about the settlement systems for Taiwan stocks and U.S. stocks, and the speed of fund availability can vary quite a bit.

Let's start with Taiwan stocks. In the past, Taiwan's stock market used a T+2 system, meaning if you sell stocks on Friday, you have to wait until the following Monday to access the funds. Later, in 2022, the Taiwan Stock Exchange introduced a T+0 system, which changed the game. Now you can sell and access the money on the same day, which sounds great, right? But there's a catch: T+0 is actually a concept of borrowing money from your broker. They give you the funds in advance, but you have to pay interest, usually around 5%. If you want to use T+0, you need to apply for it yourself; brokers like Fubon and Yuanta support this.

As for U.S. stocks, the settlement system is similar to Taiwan's, also T+2. Previously, U.S. stocks used a T+3 system, but in 2017, it was changed to the current T+2. However, it's important to note that different account types in U.S. stocks operate quite differently.

If you have a cash account, selling stocks on Friday means you have to wait until next Tuesday to use that money to buy another stock. There's also a pitfall to avoid: you can't use unsettled funds for same-day trading, or you'll be restricted for 90 days. For example, if you have $100 in your account and want to buy a stock but the price is higher than expected, causing insufficient funds, you need to top up the difference within five business days; otherwise, you'll face restrictions when selling stocks.

But if you have a margin account, the situation is different. As long as your account balance exceeds $25,000, you can trade freely without the T+2 restriction. This type of account also allows short selling and borrowing money for trading, with more trading options. The trade-off is a higher account opening threshold, usually starting at $2,000.

Is there a way to get the money on the same day after selling stocks on Friday? Yes, there is. Some investors consider tools like contracts for difference (CFDs). This method has a low deposit threshold and operates on a T+0 basis, with deposits and withdrawals settled on the same day. However, this approach carries higher risks and requires careful assessment.

Finally, a quick note: money used to buy U.S. stocks can be available on the same day. If you deposit funds on that day, you can start trading immediately. Depositing directly through a U.S. broker is almost instant, but if you buy U.S. stocks through a Taiwanese broker via cross-border trading, it depends on each broker's rules—generally, you need to deposit before 8 p.m. to trade on the same day.

So next time someone asks you how long it takes to get the money after selling stocks on Friday, you’ll know how to answer—Taiwan stocks can be settled the same day, U.S. stocks usually take two business days, but it also depends on what type of account you have.