What is Instant Buying Power?
Instant Buying Power lets you start trading stocks as soon as you submit an ACH deposit, up to $1,000, without waiting for the deposit to be reviewed and posted to your account.
ACH deposits usually take until the next business day to post. Instant Buying Power bridges that gap: it gives you temporary buying power while your deposit is pending, and it’s replaced by your full deposit amount in cash once the deposit posts. Important: Instant Buying Power is not cash and is provided before your ACH deposit has been successfully completed. If your deposit is rejected or returned after you use Instant Buying Power, you remain responsible for any resulting losses or account deficiency.
How it works
Your Instant Buying Power equals the total of your pending ACH deposits, up to a limit of $1,000.
- You submit an ACH deposit. Instant Buying Power is added to your stock buying power right away, while the deposit is still pending.
- Your deposit is reviewed. Deposits are typically reviewed and posted by the next business day.
- Your deposit posts. The full deposit amount is credited to your account as cash, and the Instant Buying Power for that deposit is removed at the same time. Your buying power doesn’t drop during this switch.
Where to see it
Instant Buying Power isn’t shown as a separate amount. It’s included in your Overnight Buying Power and Intraday Buying Power, so both go up as soon as you submit an eligible deposit. When the deposit posts, the Instant Buying Power in these figures is replaced by your deposited cash.
How much can I get?
Your pending deposits | Instant Buying Power |
$600 | $600 |
$1,000 | $1,000 |
$3,000 | $1,000 |
The $1,000 limit applies only while a deposit is pending. It doesn’t limit how much you can deposit. If you deposit $3,000, you get $1,000 of Instant Buying Power right away, and the full $3,000 is credited as cash once the deposit posts.
Multiple deposits
If you have more than one pending deposit, they count toward the same $1,000 limit. When one deposit posts, it no longer counts toward the limit, so any remaining pending deposits can use the freed-up room.
For example, you deposit $600 and then $700. Your Instant Buying Power is $1,000. When the $600 deposit posts, you have $600 in cash plus $700 of Instant Buying Power for the deposit that’s still pending, for a total of $1,300.
What you can use it for
Instant Buying Power can only be used to trade stocks. Once your deposit posts, the cash from that deposit can be used like any other cash in your account.
While your deposit is pending (Instant Buying Power) | After your deposit posts (cash) | |
Trade stocks | Yes | Yes |
Trade options | No | Yes |
Trade crypto | No | After 5 business days |
Margin leverage | No, it's added to your buying power dollar for dollar | Yes, under standard margin requirements |
Withdraw | No | After 5 business days |
Instant Buying Power isn’t cash. It doesn’t change your account balance or equity, and it can’t be withdrawn.
Who is eligible
You get Instant Buying Power automatically when you make an eligible deposit. There’s nothing to turn on.
A deposit is eligible when:
- It’s an ACH deposit from a bank account linked through Plaid.
- Your account is in good standing, with no restrictions.
- Your account hasn’t lost Instant Buying Power access because of previous failed or returned deposits.
These deposits don’t receive Instant Buying Power:
- ACH deposits from bank accounts linked with micro-deposit verification
We may change or remove Instant Buying Power access at any time, including based on your deposit history.
If your deposit is rejected or returned
If your deposit doesn’t go through, the Instant Buying Power for it is removed. If you already used it to buy stocks, we may sell some or all of those positions to cover any margin deficiency.
A deposit can fail at two points:
- Rejected before it posts. The Instant Buying Power for that deposit is removed immediately.
- Returned after it posts. Your bank can reverse an ACH deposit days later, for example because of insufficient funds. The deposited cash is removed from your account, which may leave a negative cash balance.
In either case, you’re responsible for any losses and any negative balance. We may cover them using other funds in your account.
If you have 2 or more failed or returned deposits, you may lose access to Instant Buying Power. To avoid this, make sure your bank account has enough funds before you deposit.
FAQs
Why didn’t I get Instant Buying Power for my deposit?
Your deposit may not be eligible. Common reasons: your bank account was linked with micro-deposits instead of Plaid, your account has a restriction, or you’ve had previous failed deposits. See Who is eligible above.
Why is my Instant Buying Power less than my deposit?
Instant Buying Power is limited to $1,000 across all your pending deposits. The rest of your deposit becomes available as cash once it posts.
Why didn’t my buying power change when my deposit was posted?
Your Overnight and Intraday Buying Power already included Instant Buying Power for that deposit. When it posts, that amount is replaced by the same amount in cash, so your buying power stays the same or goes up. If your deposit is rejected instead, your buying power goes down by the Instant Buying Power for that deposit.
Can I use Instant Buying Power to trade options or crypto?
No. Instant Buying Power is for stocks only. After your deposit posts, you can use the cash for options. After 5 business days pass, you can use the cash crypto.
Can I withdraw Instant Buying Power?
No. Instant Buying Power isn’t cash. ACH deposits can be withdrawn after 5 business days.
Does Instant Buying Power cost anything?
No. There’s no fee or interest for using Instant Buying Power.