SEC Day Trading Rule Change Increases Accessibility for Small Retail Investors

Retail traders with less than $25,000 in their accounts can now day trade. The Securities and Exchange Commission scrapped regulations that previously required traders to hold a $25,000 margin account to be eligible to make four or more intraday trades within a five-day window. This regulatory easing is expected to increase trading activity for Robinhood Markets, which primarily serves smaller retail investors. Robinhood shares rose 10.41% to $87.32 on the news. The change could drive new deposits to the platform and more memberships to its Gold subscription offering.