Replies to post #10951 on Worthington Energy, Inc. (fka WGASQ)

[WhiteSahara]

I use two accounts, a cash and a margin. The cash account, Scottrade, always takes three days to clear before the monies can be used for trading. With the margin account, Ameritrade, the money is always available for trading, seconds after any transaction.

I have contacted both brokerages about the situation and they both have the same policies on the amount of time before trading can take place with a cash account, three days.

Here's an article from Wikipedia that describes exactly what happens with cash and margin accounts:

Trade Day + 3 Days

In the United States, stocks take three days to settle. If you buy on Monday, you don't pay for the purchase until Thursday. This is known as trade day plus 3 days or T+3.
This three day settlement period is considered an extension of credit from the broker to the customer. Because the transaction is considered a credit issue, the Federal Reserve Board is responsible for the rule which is officially called Regulation T.
If a brokerage customer is approved for margin on the account there will be a line of credit to "cushion" the three day settlement period. This credit allows customers to trade while the cash settles. For accounts without margin (cash accounts), stock traders must have enough cash in the account to pay for any purchases the day they are due. A client in good faith agrees to make full payment of settled funds or deposit securities within the three day settlement period and not to sell before making such payment.
http://en.wikipedia.org/wiki/Free_riding