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Vanguard Brokerage Delays
Old 01-22-2009, 06:00 PM   #1
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Vanguard Brokerage Delays

Recently I transferred an IRA that had many individual stock holdings to Vanguard. I have been slowly selling the stocks, the money gets swept into my Vanguard MM account, and then I buy Vanguard funds.
Last Friday I ordered the sale of about a dozen different stocks, total value about $60k. It's been a full week and I'm still just showing the money as a credit for my account, but the actual cash hasn't yet made it to my MM.
That seems like a long time, previous similar transactions seemed to take a long time but not this long. Is this normal?
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Old 01-22-2009, 06:22 PM   #2
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Stock trades settle on 3rd business day after trade date. If your stocks were sold last Friday, because Monday was a holiday, they settle today (Thursday). So when Vanguard updates tomorrow, you should see the update. If not, call customer service.
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Old 01-22-2009, 09:56 PM   #3
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Yes, I forgot about the holiday. Thanks.
After I sell the remaining individual stocks, then I probably won't be doing much with Vanguard Brokerage. But is the 3 day delay common in the industry?
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Old 01-22-2009, 10:35 PM   #4
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Quote:
Originally Posted by Gearhead Jim View Post
But is the 3 day delay common in the industry?
Yes, that's a stock exchange rule.
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Old 01-23-2009, 07:11 AM   #5
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In my experience, the 3-day rule is only common when switching between vendors. And Vanguard mutual funds and VBS (aka Pershing) are really different vendors. This is one of the major complaints with VBS and also one reason why Vanguard is ditching Pershing and going to start something else.

With the brokers that I have used, one can buy/sell on the same day (even 1 second later), but one cannot remove the money from the brokerage account until post-settlement. If you have a margin account, you can even remove the money, but you will be taking out a loan until settlement.
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