More From Your Account
Extended Settlement
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As a TD Waterhouse customer you can now trade online and settle your trades up to 20 working days later.
About Settlement Periods
The settlement period is the time from the point of trade to when payment is required.
The normal settlement period for market trades is 3 working days. This is known as T+3, where T stands for 'Trading Day' and 3 is the amount of days before settlement is required.
The Benefits of Extended Settlement
Extended Settlement allows you to choose a longer time than 3 days after trading before you must either pay for a purchase or receive funds from a sale, i.e. settle the trade.
One advantage of this, when buying shares, is that you can close the position (sell those shares) before the full payment is required and so you only have to pay the difference in price (if any) or receive the balance owed to you.
Extended Settlement is even more advantageous when used with your Personal Trading Level of £10,000 (subject to status). This allows you to react quickly to market conditions by trading without the need for cash in your account before you make the purchase, and now you have up to 20 days to settle trades online. Please note that the cleared funds must be in your account on the settlement day.
See our demo of how you can benefit from this longer term view
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More about Extended Settlement
What is the procedure of an Extended Settlement?
When dealing on an Extended Settlement period of longer than T+10 the Retail Service Providers are not obliged to offer the displayed price and may add a funding charge of up to 1%. Therefore the Dealing Representative will canvas a number of Retail Service Providers directly to acquire the best price available to you.
Which account do I need to trade on an Extended Settlement period?
To make a purchase on an Extended Settlement period up to T+20 open a Trading or Trading Plus Account. Or upgrade your existing account today.
Through our telephone dealing channel you also have the ability to trade on Extended Settlement up to T+25.
