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SCHWAB / THINKORSWIM - HOW T+1 SETTLEMENT WORKS WITH A CASH ACCOUNT I switched a trading acc with Schwab from Margin to Cash mid-day yesterday. I do options day trading in this acc - only long options (buying calls and puts) - so a cash acc works well for me - don't need the margin and the PDT restrictions. Here's some important info for Schwab/TOS from TOS support: 11:50 Adam_V: When you make a daytrade in a cash account, you will see your buying power replenish immediately 11:50 Adam_V: Even though the funds are not settled 11:51 Adam_V: It is much easier to incur a good faith violation as a result 11:51 Adam_V: For trading on unsettled funds 11:51 Adam_V: We recommend adding in the "Cash Available for Withdrawal" balance to keep track of how much you have in Settled Funds for trading Yesterday, after an options day trade in TOS in the new Cash acc, predictably, my "Cash Available for Withdrawal" dropped by the amount I spent on buying the options. ("Available Funds For Trading" showed the higher settled value - which the TOS support warned about). This morning, "Cash Available for Withdrawal" is at the settled amount. So with T+1 settlement, at least for Schwab/TOS , the settled funds are available the next day morning - awesome! To avoid cash acc trading violations, in TOS, trade with funds within the "Cash Available for Withdrawal". https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations EVEN WITH A CASH TRADING VIOLATION THE WORST THAT CAN HAPPEN: SCHWAB WILL REJECT YOUR ORDERS IF YOU GO BELOW THE SETTLED FUNDS FOR THE DAY