Small Accounts Now Have Full Day-Trading Flexibility

Retail investors with less than $25,000 in their margin accounts can now execute more than four day trades in five business days. The US Securities and Exchange Commission (SEC) approved a FINRA rule change that eliminates the Pattern Day Trader designation and the $25,000 minimum equity requirement. This removes restrictions that have governed retail day trading for decades. The SEC action also eliminates all related day-trading buying power provisions under FINRA Rule 4210. Broker-dealers must now follow new intraday margin standards that require them to monitor and address real-time risk exposure in customer margin accounts. Retail brokers like Robinhood and Webull will no longer impose automatic restrictions on frequent trading for small accounts.