Fidelity (009972) Restricted Account Error

Someone asks:

I have a certain amount in my individual account that says cash available to trade. I try to make a trade well under that available amount and then I get a prompt, not enough cash. Is it because the funds from my last trades aren’t settled? How am I supposed to trade in the morning and sell in the afternoon if I’m restricted like this.

Error (009972) The account specified in this order is restricted. Please call a Fidelity representative.

Unable to enter the order because your account is restricted to closing transactions.

Three possible reasons…

Brand New Account

A newly made account on Fidelity will not be able to trade immediately. There is a 24-48 hours verification process for new accounts.

Trading with Unsettled Cash

Customers who have used up all their settled cash will not be able to trade until the cash becomes available again. It takes 2 days for cash to settle.

A Good Faith Violation occurs when you day trade with unsettled cash. Customers with 3 or more strikes will be put on restriction for 90 days.

Recent Transfer from Another Brokerage

Were you recently switched to Fidelity from another brokerage like Robinhood? You will not be able to execute any trade until your account is completely transferred over.


Other comments

Mike H:

If you have a cash account and all your cash is used in trades, the money needs to settle. This is universal, not broker-specific. The goal is to get 25k and go to margin, so you no longer have PDT rules to deal with.

Josh G:

I had the same thing. One of my trades put me in the negative when I made a purchase, they said you have to wait for 1 to 3 business days for funds to settle.

Brian M:

You can’t clear the restriction. You will only be able to purchase with settled funds for 90 days. So if you sell a stock, you will have to wait two days for the sale to settle and clear before you can use that money to buy again.

Paul R:

It looks like a Good Faith Violation on a cash account! Yeah, I’ve got those too. Learn how to avoid them and only day trade with settled funds.

JW D:

I believe due to a lack of settled cash. I usually keep 10k in settled cash and make as many trades as long as the 10k doesn’t go down to zero. Because of that, I have never received any restrictions.

Tobias T:

I also bought a stock this morning. I wasn’t able to sell it for a profit. Fidelity prompted me with a violation of good faith.