What unsettled funds are and how they work can be confusing for some people. This article will explain in detail what unsettled funds are and answer some of the most commonly asked questions about them. 

We'll start with a basic definition of unsettled funds and then move on to answering some specific questions. Hopefully, by the end of this article, you'll have a better understanding of what unsettled funds are and how they work. 

What do unsettled funds mean? 

If you have unsettled funds in your account, it means that they have received your payment but it has not yet been processed. This usually happens when a payment is made on a weekend or holiday, or if there is a problem with your bank account. 

If you see unsettled funds in your account, don't worry! They will be available as soon as they are processed. In the meantime, you can continue to use your account as usual. If you have any questions about unsettled funds, please contact the platform's support team. 

Other causes of unsettled funds: 

  • If you made a payment with a credit or debit card, it may take up to three days for the funds to settle. 
  • If you made a bank transfer, it may take up to five days for the funds to settle. 
  • Some payments may require manual review before they are processed. This can cause delays of up to seven days. 

What do unsettled funds mean in Robinhood? 

When using the popular trading app Robinhood, you may encounter a notification stating 'unsettled funds'. This means that the funds haven't cleared yet. This is normal and usually happens with unsettled funds. 

When you see this message, it means that the funds are still in transit and will be deposited into your account soon. In the meantime, you can continue trading with other funds that have settled. If you have any questions about unsettled funds, feel free to reach out to Robinhood's customer support team

What are unsettled funds?

It is money that you have deposited into your account that is not available for withdrawal because the bank is still processing the deposit. This usually takes a few days. Once the deposit has been processed, the funds will be available for withdrawal. 

If you need to withdraw money before the deposit has been processed, you may be able to do so, but you will likely incur a fee. It is best to check with your bank to see what their policies are regarding unsettled funds. 

Unsettled funds can be a nuisance if you are trying to access your money right away, but it is important to remember that this is a temporary situation. 

The bank will eventually process the deposit and you will be able to access your funds. In the meantime, try to avoid incurring any fees by understanding your bank's policies regarding unsettled funds. 

How long do unsettled funds take to settle? 

The answer to this question depends on a few factors, including the type of transaction (purchase, sale, or refund) and the payment method used. For credit card transactions, for example, funds are typically available within one to three business days. 

However, it can take up to 30 days for the funds to become settled. Bank transfers may settle within one to five business days. Checks usually take longer, with a settlement period of two to eight weeks. If you're wondering how long unsettled funds will take to settle in your account, contact your bank or financial institution for more information. 

They'll be able to give you a more accurate estimate based on your specific situation. In the meantime, be patient and keep track of your transactions so you can be sure that the funds have been properly settled. 

What happens if I use unsettled funds? 

Typically, you won't be able to access unsettled funds until the transaction has been processed. This usually takes a few days but may take longer depending on your bank. 

If you try to use unsettled funds, you may be charged an additional fee by your bank. In some cases, your bank may also freeze your account until the funds have settled. 

Is unsettled cash my money? 

Technically, unsettled cash is your money. The funds are yours, but the brokerages hold on to them until the settlement date to protect themselves from any losses that may occur should the stock prices drop sharply before the trade is actually finalized. 

Some brokers may allow you to use unsettled cash to purchase additional securities before the settlement date arrives, but you should check with your broker first to see if this is allowed. This is one of the advantages of having multiple brokerage accounts.

Unsettled funds can also be used to cover margin requirements or to pay fees and commissions. 

Even though it is your money, be aware that unsettled money are not available for withdrawal until after the settlement date arrives. So, if you need access to those funds, you may have to wait a few days before you can get your hands on them. 

How do you day trade with unsettled funds? 

The answer isn't as simple as you might think, and there are different schools of thought on the matter. The first question you need to ask is can you even trade unsettled funds? The answer to that is yes, you can but there are some conditions. 

As we explained, unsettled funds are funds that have been deposited into your account but haven't yet been settled. This usually happens with bank wire deposits and takes about three days for the money to hit your account. So if you day trade with unsettled funds, you're essentially trading with borrowed money. 

Some exchanges do not allow you to trade unsettled funds, so it's important to check with your exchange before doing so. Now that we've answered the first question, let's move on to the second one. 

Should you day trade with unsettled funds? 

There is no easy answer to this question. It really depends on your risk tolerance and how comfortable you are with trading with borrowed money. If you're new to day trading, we would recommend against it. Trading unsettled money can add an extra layer of risk to your trades that you may not be comfortable with. 

If you're an experienced day trader and you have a good handle on risk management, then trading unsettled funds may not be a big deal for you. Ultimately, the decision of whether or not to trade with unsettled funds is up to you. Just make sure that you do your research and understand the risks involved before making any trades. 

Can you withdraw unsettled funds? 

The quick answer is no. Unsettled cash are funds that have been deposited into your account, but haven't yet been cleared by the bank. This usually takes a few days. Until the funds are settled, you won't be able to withdraw them. 

However, there may be some exceptions to this rule. For example, if you have an account with a bank that uses instant settlement, you may be able to withdraw your funds right away. 

Or, if you've had the same account for a long time and have a good history with the bank, they may be willing to give you access to your unsettled funds early. 

Either way, it's always best to check with your bank before making any withdrawals from your account. That way, you'll avoid any fees or penalties. 

Can I buy stock with unsettled funds Schwab? 

Yes, in Schwab accounts from long positions can be used to buy stocks. 

Can you trade with unsettled cash TD Ameritrade? 

Only qualified clients can trade with unsettled cash through TD Ameritrade. It can be helpful to contact their support team to inquire about the qualification requirements. 


The meaning of unsettled funds is when the money from a sale hasn't yet been deposited into the seller's account. Unsettled funds usually take a few days to process and during that time the funds are considered unsettled. Unsettled funds are also sometimes called unsettled cash or unsettled money. 

When you transfer money, the money is first deposited into your account as unsettled funds. Once the transaction has been processed by the bank, the funds will become settled and you'll be able to withdraw them. 

Overall, the key takeaway is that unsettled cash is just a part of the banking process. So if you see a message saying 'unsettled funds', don't worry, it's normal. Just be aware that you won't be able to access those funds until they've been settled by the bank.