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How to invest immediately without waiting for settlement (Interactive brokers)
I opened a cash account with Interactive Brokers because I do not want to risk using margin and incurring hefty interest.
However, when I tried to invest, there was an error that said “unsettled cash”. I consulted the live chat and they said I have to wait 2 business days for the currency conversion to be settled.
- Does that mean I can never invest right away upon currency conversion?
- I would’ve missed the dip if I had to wait
- Is there any way to invest right away with a cash account?
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Nicholas Beh
21 Jul 2021
Student Ambassador 2020/21 at Seedly
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@ jim kok. For poem, If i buy on 19 july, if my $$$ reach them by 21 jul . No interest because contract havent clear, no transaction yet.
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You should use margin account. Buy 1st , top up later, else you need to keep $$$ in your brokerage a...
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What you experienced is a rather uncommon occurence and only happens when there is a mismatch in settlement dates between the forex transaction and the exchange which you are trading on. Normally, even on a cash account, you would have been able to invest immediately without issue.
However, yesterday was a public holiday in Singapore, so the settlement date of the SGD forex transaction was pushed 1 day later, causing a mismatch in settlement dates. If you had converted the currency on Monday, you would have been able to transact on Tuesday (PH) as the settlement dates would have then aligned.