A new Fidelity customer recently asks:
I have $50 available to trade, but every time I try, I get this notice. I transferred funds today, but normally when I transfer funds to my account on the same day, I can trade immediately, but not this time. Did anyone else experience the same problem I did?
If you just created an account on Fidelity, you are going to receive the following error message when placing an order:
Error:(313112) The Estimated Order Value for this order exceeds your Cash Available to Trade. Certain security purchases such as stocks trading less than $3 per share or opening option orders require funds from recent deposits (checks, electronic fund transfers) to be cleared or collected at the time of order entry. You must edit this order or increase your Settled Cash balance before you can place this order.
This error usually occurs in a newly created account that lacks the funds to purchase a security (either in shares or option order). If you have already initiated a fund transfer request to your Fidelity account, the fund may take a day or two to settle.
Once your fund request becomes settled cash, it will be available for trading, and you can use it to purchase any securities.
Other Helpful Comments
From Blessing Chiwuzor:
If you’re trying to purchase an OTC stock, they required your cash to be settled first before trading.
From Ernest Turner:
Whatever type of order you’re trying to make requires settled cash. Not trying to be smart but these messages usually tell you exactly what the issue is, although I know some of them can be hard to understand.
From Mike Hernandez:
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