SEC reversal on day-trading limits sends Robinhood and Webull shares soaring

Retail investors can now trade as frequently as they want, and Robinhood and Webull are the first to benefit. Shares of Robinhood (HOOD) jumped more than 7% in pre-market trading, while Webull (BULL) surged over 9% after the U.S. Securities and Exchange Commission announced it would end limits on day-trading for retail investors. The move removes a key constraint on traders who use margin and rapid turnover strategies, effectively leveling part of the playing field between individual and institutional traders. Until now, pattern day-trading rules restricted retail accounts with less than $25,000 from executing more than three day trades in a five-day period without meeting enhanced margin requirements. The SEC’s reversal allows smaller investors to maintain aggressive trading rhythms without triggering automatic restrictions. Retail investors will no longer face restrictions on frequent trading in certain accounts, increasing their ability to execute short-term trading strategies.