So I sold stock last Thursday. Why does it take 2 business days for a stock to be sold? Where Crypto and E-payments nowadays take real time. Also I need the money to be wire transfer to international bank. Why does this is not also real-time it will take like 4-7 business days before it will be on my bank account. Why does the transfer not working on weekends? So basically why everything is still slow and why everything can’t be done on weekends?
In: 69
Financial services are like many other services, they are divided into different classes and serve different customers at different performance levels.
Most retail investors and bank customers are “third class” clients. Cheap services, designed for low value, high volume and limited perks. There is no reason particularly to improve services at high costs for the millions of low value transactions. These customers are paying for this level of service.
Wealthier clients can go to “second class”. Arrange for credit lines with their banks, margin accounts with their brokers and other short term facilities. These come at a cost but allow these kind of customers to enjoy greater access to their funds.
Even wealthier clients can access “first class” services where many more services are available. It costs a lot more but the amounts they can transact in are far higher and these customers are valued by the banks and brokerage.
The question is, can you speak to your bank and obtain credit line facilities? Do you have services of a private wealth manager at your bank and investment broker? The funny thing is to expect higher and better levels of services for free. These organizations are businesses – expect to get what one is willing to pay for.
You don’t expect to go into a discount store and obtain Tiffany level of services and amenities.
Anyway, the technicalities are that US stock trading is T+2 (takes 2 business days). This is governed by the SEC and stock market rules. There are a lot of intermediaries involved (clearing houses, market makers etc) dealing with many millions of daily transactions.
International wire transfers more than a minimum amount go through security checks – the US government has pretty stringent reporting requirements for money transfers and banks have put in the security verifications necessary. The banks are required to know who the money comes from and who the money goes to and to ensure that it isn’t the proceeds of or goes on to fund illegal activities. This all goes on behind the scenes and requires time.
Latest Answers