Take Longer to Settle up

What is a Settlement Period?

The settlement period is the time between you making a trade to when payment, in either cash or shares, is required.

3 working days is the normal market time that brokers and the markets can swap all the necessary details (shares and money) to complete a trade. These 3 days are known as the standard settlement period of T+3. T stands for 'Trading Day' and 3 is the number of days after the trading day that payment is made or shares are received.

What is Extended Settlement?

Extended settlement gives you longer than the standard 3 working days after trading before you must settle up, and it is the term used when trading with a settlement period longer than T+3.

Extended settlement periods of T+10 and T+20 online and T+25 on the telephone are available through TD Waterhouse, available because we hold your shares electronically on your behalf. When trading in paper certificates the settlement period will always be T+10.

Extended Settlement is only available on UK share trades. International trades are T+3 (Germany T+2), and Unit Trusts and OEICs are T+4.

Advantages of Extended Settlement

When buying shares on extended settlement you can take a longer look at the market conditions before deciding whether to pay for the shares in full or to close the position (sell those shares) before payment is required. Closing the position before settlement is due means you only have to pay the difference in price (if any) or receive any balance owing to you.

Extended settlement is even more advantageous when used with your Personal Trading Level of £10,000 or above (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 a purchase.

As you own the shares from the purchase date you will also receive any benefits connected with the stock, such as dividends, from that purchase date until you decide to sell them.

Extended Settlement - Trading Procedure

You will choose you preferred settlement period at the time you place your trade.

When trading on extended settlement the Retail Service Providers(RSPs) are not obliged to offer their displayed price and may add a funding charge of up to 1%. Therefore, our dealing representatives and online service will always canvas a number of RSPs to acquire the best price available to you.