Fidelity Settlement Time
Did you notice that when you execute a trade for a stock or mutual fund, something
known as the settlement date appears on your trade confirmation? If the trade you placed
is a sale, the cash received from that trade may be subject to settlement rules. In a cash account, you may be able to use unsettled sale proceeds to place another trade, but you must avoid selling the new purchase before the original sale proceeds have settled. You also cannot withdraw sale proceeds until they are settled.
How Long Does It Take to Settle Cash at Fidelity?
It takes one business day to settle funds from stock trades at Fidelity. One business day is also required to settle most ETF and options trades. Many mutual fund trades also settle in one business day, although money market funds and some fund exchanges may settle on the same day.
Fidelity Comparison
History of the Settlement Date
To define it in simple terms, the settlement of a trade is when the money and securities are transferred between two parties. Before the computer age and the current modern era, it could take days or even weeks for a particular trade to settle. With the methods of transportation back then, as well as handwritten securities, trades could not be completed any faster.
In the latter part of the 20th century, as technology rapidly advanced and became more common, things started to shift. At first, settlement times were lowered to seven days, then later to five days, and then to three days.
In the fall of 2017, because of the continued efficiency and increased use of technology, the United States reduced settlement periods to two days. In May 2024, the standard settlement cycle for many U.S. securities was shortened again to one business day after the trade date. The pace of transactions was significantly upgraded, and by reducing settlement time, regulators and the industry also lowered risk throughout the financial system.
Nomenclature
In the U.S., the current standard settlement date for many securities is denoted as T+1. In this case, the T represents the date that the trade
was made, and the +1 stands for one additional business day. It should be noted that these are only
business days and therefore do not include weekends or market/settlement holidays. Older systems that were used could be denoted as T+2, T+3, T+5, etc.
Updated on 5/15/2026.
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