When I Sell My Stock, How Do I Get My Money? The Complete Guide for Investors

Have you ever wondered what happens to your money when you hit that “sell” button on your stock trading app? I mean, the stock is gone from your portfolio, but where’s the cash? If you’ve asked yourself, “when I sell my stock, how do I get my money?” – you’re not alone. This question confuses tons of new investors.

Let’s face it – buying stocks is pretty straightforward But when it comes time to cash out? That’s where things get a bit fuzzy for many of us

As someone who’s been investing for years I’ve learned that understanding the cash-out process is just as important as knowing how to pick good stocks in the first place. After all, what’s the point of investing if you don’t know how to access your profits when you need them?

The Basics: What Happens When You Sell a Stock?

When you sell a stock, you’re essentially converting your investment back into cash. But here’s the thing – it doesn’t happen instantly.

The moment you hit “sell” is just the beginning of a process. Your order gets executed on the stock exchange, but there’s a waiting period before the money actually becomes available in your account. This waiting period is called the “settlement cycle.”

Understanding the Settlement Cycle: T+1 Rule

Here’s some good news for investors in 2025 – the settlement process is faster than ever before! As of May 28, 2024, the SEC implemented what’s called the “T+1 rule” for stock settlements.

What does T+1 mean? Simply put:

• T = Transaction date (the day you sell your stock)
• +1 = One business day after the transaction date

This is a major improvement from the previous T+2 rule (which required two business days) and the even older T+3 rule (three business days) that was in place before 2017

Let’s break it down with an example:

• If you sell stock on Monday → your money settles on Tuesday
• If you sell on Friday → your money settles on Monday (since weekends aren’t business days)

This faster settlement cycle means you can access your money quicker than ever before!

5 Steps to Cash Out Your Stocks

Getting your money after selling stocks involves several steps. Let’s walk through them:

1. Determine Your Investment Goals

Before you even hit that sell button, take a moment to think about why you’re selling. Is it because:

• You need cash for a major purchase (like a house or car)
• You want to lock in profits after a stock has performed well
• You’re trying to prevent further losses on a declining stock
• You’re rebalancing your portfolio

Having clear goals will help you make better decisions about when and how to cash out.

2. Access Your Brokerage Account

Log into your brokerage account where you hold the stocks you want to sell. This could be an online platform like SoFi Invest, Robinhood, Fidelity, or any other brokerage service you use.

3. Place an Order to Sell Your Stocks

Now comes the actual selling part. When selling stocks, you have several types of sell orders to choose from:

Market Orders: This sells your stock immediately at the current market price. It’s quick but you have no control over the exact selling price.

Limit Orders: You set the minimum price you’re willing to accept. The order only executes if the stock reaches that price or higher. This gives you more control but might not execute immediately (or at all if the stock never reaches your price).

Stop Orders (Stop-Loss): These automatically trigger a sale when the stock drops to a certain price. Great for limiting losses if a stock tanks.

Trailing Stop Orders: Similar to regular stop orders, but the trigger price adjusts as the stock price moves up, helping you lock in gains while still protecting against downside.

I personally prefer limit orders when I’m not in a hurry, as they give me more control over my selling price. But when markets are volatile and I just want out, a market order does the job.

4. Wait for the Sale to Be Completed

After placing your sell order, you’ll need to wait for it to be executed and then for the settlement to complete. As I mentioned earlier, with the new T+1 rule, you’ll only need to wait one business day after the sale for settlement.

5. Receive Your Money

Finally! This is the part you’ve been waiting for. Once your sale settles, the proceeds will be deposited into your brokerage account. But here’s the thing – having money in your brokerage account doesn’t automatically mean it’s in your bank account.

How Do I Actually Get the Money in My Bank Account?

So your stock has sold and settled – great! But how do you get that money into your actual bank account where you can spend it? You’ve got a few options:

Option 1: ACH Transfer to Your Bank Account

The most common way to move money from your brokerage to your bank is through an Automated Clearing House (ACH) transfer. These transfers are usually free but can take 1-3 business days to complete.

For example, if your stock sale settled on Tuesday, you could initiate an ACH transfer that same day, but the funds might not appear in your bank account until Wednesday, Thursday, or even Friday.

Option 2: Wire Transfer

If you need the money ASAP, a wire transfer is your fastest option. The money typically arrives in your bank account the same day, but there’s a catch – fees. Brokerages commonly charge up to $35 for outgoing wires, and your bank might charge another fee for receiving it.

Wire transfers make sense for large amounts when time is critical, but for smaller amounts, the fees might not be worth it.

Option 3: Brokerage Account with Checking Features

Here’s a pro tip that’s saved me lots of hassle: Use a brokerage account that includes checking features! Many modern brokerages now offer accounts with debit cards and check-writing capabilities.

With these features, you can:

• Use your debit card to make purchases directly from your brokerage account
• Withdraw cash from ATMs without transferring to another account first
• Write checks from your brokerage account

This essentially eliminates the need to transfer money to a separate bank account altogether!

Factors to Consider When Cashing Out Stocks

Before you rush to sell your stocks and cash out, there are a few important things to consider:

Capital Gains Taxes

Don’t forget about Uncle Sam! When you sell stocks at a profit, you’ll owe capital gains taxes. The tax rate depends on how long you held the stock:

• Short-term gains (held less than a year): Taxed at your regular income tax rate
• Long-term gains (held more than a year): Usually taxed at a lower rate (0%, 15%, or 20% depending on your income)

I learned this lesson the hard way my first year of investing – I didn’t set aside money for taxes and got a nasty surprise at tax time!

Fees and Commissions

While many brokerages now offer commission-free trading, there might still be fees associated with selling stocks or transferring funds. These can eat into your profits, especially on smaller trades.

Timing of Your Sale

The stock market can be unpredictable. Rushing to sell during a market downturn might mean accepting a lower price than necessary. On the flip side, holding too long could mean missing an opportunity to sell at a peak.

I try not to time the market perfectly (it’s nearly impossible), but instead focus on whether the sale aligns with my overall investment goals.

Should You Reinvest or Cash Out?

When you sell stocks, you face a choice: take the money and run, or reinvest it elsewhere. Both have their advantages and disadvantages.

Pros of Reinvesting:

• Compound growth – Your investments can continue to grow over time
• Diversification – Spread your money across different assets to reduce risk
• Hedge against inflation – Investments typically outperform cash over the long term

Cons of Reinvesting:

• Miss out on using money for other needs – That cash could pay down debt or fund other goals
• Capital gains taxes still apply even if you reinvest
• Continued exposure to market risk – Your reinvested money could lose value

I usually follow a hybrid approach – I keep some profits as cash for near-term needs and reinvest the rest. It’s all about balance!

Common Questions About Getting Money After Selling Stocks

How long does it take to get money after selling stocks?

With the new T+1 settlement cycle implemented in May 2024, it takes just one business day after the transaction date. After settlement, transfers to your bank can take an additional 1-3 business days for ACH transfers or same-day for wire transfers.

Can I withdraw money from stocks immediately?

No, you can’t withdraw immediately after selling. You must wait for the trade to settle (T+1, or one business day). After settlement, the money is available in your brokerage account, and you can then transfer it to your bank account.

Do I get money when I sell stock?

Yes! When you sell stock, you receive the current market value of your shares (minus any fees or commissions). If you’re selling at a higher price than you paid, you’ll make a profit. If you’re selling at a lower price, you’ll take a loss.

Final Thoughts: Getting Your Money Shouldn’t Be Complicated

The process of cashing out stocks and getting your money has become much simpler and faster with the new T+1 settlement rule. The key is understanding the timeline and knowing your options for accessing your funds.

If you’re selling stocks frequently or might need quick access to your funds, I highly recommend looking into a brokerage account with built-in banking features. It’s been a game-changer for me, allowing me to use my investment proceeds without the extra step of transferring to a separate bank account.

Remember, investing is not just about buying stocks – it’s about knowing how and when to convert those investments back into cash when you need it. Now that you understand the process, you can invest with confidence knowing exactly how you’ll get your money when the time comes to sell.

Have you had any experiences with selling stocks and waiting for your money? Drop a comment below – I’d love to hear about it!

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