Fidelity brokerage,Transaction turn around time, sell and/or buy, your experiences.....curious

catch22

Howdy to all,

Asking about your experience for those who use a Fidelity brokerage account for your transactions and the timelyness of sells and buys during a market day. This question is not directed towards a more traditional sell and/or buy of a mutual fund that would have the sale or purchase take place at the end of the trading day.

The following would be the scenario:

Sell either a stock or an etf at "market price" and use the proceeds to purchase another stock or etf. This transaction would process almost immediate, in theory.

Have you encountered any problems with this type of transaction?

Lastly, this type of transaction would apply to any other brokerage vendor to which you may want to comment for benefit of all here.

Thank you.
Catch

scott

It may be different at Fidelity, but if you sell a stock, then buy another stock right away and then turn around and sell the new stock right away before the proceeds of the initial sale settled, you may be hit with a pattern day trader violation.

If you sell and then buy something with the proceeds, that should be just fine. You just don't want to quickly sell what you just bought.

catch22

@scott
Nope. Not that type of transaction.

An example would be: sell half of a position in HEDJ and use the proceeds to purchase ASHR or whatever.

Thank you.
Catch

Sven

Yes. Fidelity executes "market price" transactions in seconds, thus one can make a second transaction right away. Other brokerages work the same manner.

Bear in mind that how fast the trade is really depends on the trading volume of that day. There needs to be a seller for every buyer to complete this trade. Heavily traded indeces trade readily without issues. Thinly traded securities, however, often have wider spreads, and harder to trade on market price. Personally I stay away from these thinly traded securities.

Ted

@catch22: If I were executing this trade through Morgan Stanley it should be completed while I'm still on phone with the broker with a market order. Within a hour the trade will appear on my MS Online account. For your files from SEC
Regards,
Ted
http://www.sec.gov/investor/pubs/tradexec.htm

scott

Sven said:

Yes. Fidelity executes "market price" transactions in seconds, thus one can make a second transaction right away. Other brokerages work the same manner.

Bear in mind that how fast the trade is really depends on the trading volume of that day. There needs to be a seller for every buyer to complete this trade. Heavily traded indeces trade readily without issues. Thinly traded securities, however, often have wider spreads, and harder to trade on market price. Personally I stay away from these thinly traded securities.

Most transactions for me are right when I hit the button. That said, I have encountered thinly traded stocks (especially a few foreign stocks) where it's taken 5-10-15 minutes or more.

JohnChisum

@catch22, Dittos on what Ted said. I have done both the transactions you mentioned and the trades are completed while still on the phone. The rep tells me the prices right there. An email is sent within minutes.

In the latest trade, I sold a portion of AAPL to buy BX. It was all accomplished in around 30 seconds.