What is a settlement account? Bank account versus securities account

A securities account places orders and records the stocks you hold; a bank settlement account receives and pays the money for trades. The two work together.

Updated：2026-11-15

What each account does

• Securities account: opened at a broker, used to place orders and to record the stocks you hold.
• Bank settlement account: a deposit account at a designated bank, used to pay and receive the money for trades.

When you open an account, the securities account is linked to a bank settlement account and the two work together.

How settlement works after a trade

After a trade in Taiwan, settlement is carried out:

• Buying: on the settlement date (normally the second business day after the trade) the bank account must hold enough money, which is debited to pay the other side.
• Selling: on the settlement date the proceeds are credited to your bank account.

So before buying, make sure the bank account will have enough money on the settlement date.

Common questions

• Must both accounts be at the same institution? Not necessarily; the settlement bank is one the broker works with, and the actual rules follow the broker’s announcements.
• Why is money debited? After a purchase, the settlement account is debited automatically on the settlement date.
• What if the funds are short? It is a settlement default, with penalties and other measures, and can affect later trading.

Things to think about before opening

• The process, documents and fees differ by broker; follow the broker’s official information.
• This article does not compare or recommend any broker.

This article only explains terms. Tenmizu does not provide investment recommendations and this is not investment advice.