The $25,000 Day-Trading Rule Is Gone — Now Risk, Not Trade Count, Gates Access to Margin

Retail investors with less than $25,000 can now engage in active day trading without triggering pattern day-trader restrictions solely due to trade count. The SEC approved sweeping changes to day-trading rules that had limited smaller investors' ability to trade on margin. Under the old rules, margin account holders who made four or more same-day trades within five business days were required to keep at least $25,000 in their accounts to continue day trading. That threshold effectively locked out smaller investors from active trading. The new framework replaces the trade-count limit with intraday margin standards focused on the actual risk in a customer's positions at any given moment during the session. Rather than restricting investors based on the number of trades they make, brokerages will now monitor whether those trades push an account beyond permitted risk levels. Customers may still be required to add funds or reduce positions if their exposure grows too large. Webull and Robinhood stocks rose after-hours, with BULL up 7% and HOOD up 5%, following gains of over 10% in the regular session.