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Discussion Starter · #1 · (Edited)
I sold my holdings this morning in AW.UN, cash from sell order is showing in account but when I tried to use the money showing to purchase a new stock it said I didn't have enough money. Is it safe to say it takes 2 business days for the stock sale proceeds to be available for a new stock purchase. I don't day trade was just reblancing, maybe it thinks its day trading and my account isn't setup for that. Just curious, I am with Investors edge.
 

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Every DIY brokerage I am aware of (RBC DI, Scotia iTrade, BMO IL) will allow one to use the funds to buy something else as soon as the Sell order has been confirmed, provided the new purchase has an equal, or longer, settlement time. Example: A stock is T+2 and if you buy another stock at T+2, it should work, but if you were to buy a MMF or ISA at T+1, that won't work.

You shouldn't need a margin account to do what I just said. I'd call CIBC IE and ask WTF?

Added: If this is in a registered account, that might be the issue. Some brokerages might require the cold hard cash to be in place before making a new purchase. A registered account cannot be 'short'.
 

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Every DIY brokerage I am aware of (RBC DI, Scotia iTrade, BMO IL) will allow one to use the funds to buy something else as soon as the Sell order has been confirmed, provided the new purchase has an equal, or longer, settlement time. Example: A stock is T+2 and if you buy another stock at T+2, it should work, but if you were to buy a MMF or ISA at T+1, that won't work.

You shouldn't need a margin account to do what I just said. I'd call CIBC IE and ask WTF?
Is this true of a registered account? Does the cash perhaps have to be settled in a registered account?

ltr
 

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Discussion Starter · #4 ·
Every DIY brokerage I am aware of (RBC DI, Scotia iTrade, BMO IL) will allow one to use the funds to buy something else as soon as the Sell order has been confirmed, provided the new purchase has an equal, or longer, settlement time. Example: A stock is T+2 and if you buy another stock at T+2, it should work, but if you were to buy a MMF or ISA at T+1, that won't work.

You shouldn't need a margin account to do what I just said. I'd call CIBC IE and ask WTF?

Added: If this is in a registered account, that might be the issue. Some brokerages might require the cold hard cash to be in place before making a new purchase. A registered account cannot be 'short'.
Yep, TFSA. I don't trade much in this account, couple times a year.
 

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I sold my holdings this morning in AW.UN, cash from sell order is showing in account but when I tried to use the money showing to purchase a new stock it said I didn't have enough money. Is it safe to say it takes 2 business days for the stock sale proceeds to be available for a new stock purchase. I don't day trade was just reblancing, maybe it thinks its day trading and my account isn't setup for that. Just curious, I am with Investors edge.
AW.UN should settle in 2 days. If you are trying to use the money to buy something that settles in less than 2 days that might be a problem. Otherwise I see no reason from the facts you have shared. Give your broker a call.
 
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