Robinhood Stock Surges 10% as SEC Removes Day Trading Minimum, Expanding Active Trader Access

Robinhood stock rose 10% on Wednesday as the SEC approved a rule change eliminating the $25,000 minimum account balance required for day trading. The previous restriction limited accounts with less than $25,000 to only three day trades every five business days, effectively barring millions of retail investors from active trading. The new framework replaces this with real-time margin requirements, allowing traders to operate without a minimum balance or a hard cap on trades, as long as they maintain enough equity to cover open positions. This shift expands Robinhood’s core user base and trading activity, directly boosting the company’s revenue through increased order volume. The stock’s jump reflects the market’s recognition of this structural benefit, as more active traders tend to log in more frequently, trade more often, and remain on the platform longer. Robinhood reported $4.5 billion in revenue for 2025, a 52% increase year-over-year, with platform assets growing nearly 70% to $324 billion. The rule change aligns with the company’s broader strategy to dominate active trading and expand into new markets, including options, prediction markets, and international trading.