# The trade window

## How trades work at Fynbos

When you transfer money into an investment account or sell holdings, Fynbos processes these as trades through our investment partner. Unlike instant savings transfers, investment trades follow a settlement cycle.

- **Trades are batched**: Your buy and sell orders are grouped and sent to our investment partner for execution
- **Settlement takes time**: After a trade executes, it takes time for the transaction to fully settle
- **Prices are confirmed at execution**: The final price and number of units are determined when the trade executes, not when you place the order

Understanding this process helps you plan your investments and withdrawals.

## The trade execution process

When you transfer money to an investment account or sell holdings, your order goes through several steps.

### For buy orders (transferring money in)

1. You transfer money from your Cash account to an investment account
2. The system creates a buy order based on your account's investment strategy
3. Your order is batched and sent to our investment partner
4. The trade executes at the next available pricing window
5. Units are allocated to your account once settlement completes

### For sell orders (transferring money out or withdrawing)

1. You initiate a transfer out or withdrawal from an investment account
2. The system creates sell orders for your holdings
3. Your order is batched and sent to our investment partner
4. The trade executes at the next available pricing window
5. Cash proceeds are available in your account once settlement completes

## Settlement times

Settlement is the process of finalising a trade. Different investment types have different settlement periods.

| Investment type | Settlement time | What this means |
| --- | --- | --- |
| **Unit trusts** | T+1 to T+3 | 1-3 business days after trade execution |
| **ETFs** | T+3 | 3 business days after trade execution |
| **Money market** | Same day | Effectively instant for internal transfers |

**What "T+3" means**: The "T" stands for the trade date. T+3 means settlement occurs three business days after the trade executes. If you sell on Monday, settlement completes on Thursday (excluding public holidays).

> **Important**: During the settlement period, your money is in transit. You cannot access it until settlement completes. Plan withdrawals accordingly.

## What to expect when transferring to an investment account

When you transfer money to your Tax-Free Savings, Investment Account, or Retirement Annuity, the process works as follows.

1. Transfer money from your Cash account to the investment account
2. The transfer appears in your account immediately as "pending"
3. A buy order is created based on your investment strategy
4. The trade executes at the next pricing window
5. After settlement (1-3 business days), your units appear in your holdings

**What this means for you**:

- Your Cash balance decreases immediately
- Your investment account shows the pending amount
- The exact number of units you receive depends on the price at execution
- You will see your confirmed holdings after settlement completes

## What to expect when selling holdings

When you transfer money out of an investment account or withdraw from your Tax-Free Savings, the process involves selling your holdings first.

1. You request a transfer or withdrawal
2. The system calculates which holdings to sell
3. You see an estimate of the amount, units, and fees before confirming
4. After you confirm, sell orders are created
5. The trade executes at the next pricing window
6. After settlement (1-3 business days), the proceeds arrive in your Cash account

**What this means for you**:

- The amount shown is an estimate based on current prices
- The final amount may differ slightly depending on the execution price
- Fees are deducted from the proceeds
- Your withdrawal arrives after settlement completes

## Estimated vs final amounts

When you initiate a trade, you see estimated values. The final values are confirmed after execution.

**Why estimates differ from final amounts**:

- **Price changes**: The market price may move between when you place the order and when it executes
- **Unit rounding**: The number of units may be rounded based on the fund's rules
- **Fee calculations**: Final fees are calculated on the actual trade amount

For most trades, the difference is minimal. Unit trusts typically have stable pricing, while ETFs may show slightly more variation.

## Trading fees

When you buy or sell ETFs and other exchange-traded investments, the following fees may apply.

| Fee type | Description |
| --- | --- |
| **Trading fee** | Fee charged by the stock exchange for executing the trade |
| **Settlement fee** | Fee for settling the transaction |
| **Investor protection fee** | Levy for the investor protection fund |

Unit trusts (like the Allan Gray Money Market Fund) do not incur trading fees. Fees are built into the fund's total expense ratio instead.

You always see estimated fees before confirming a trade. The final fees are shown in your transaction history after settlement.