The end of the $25,000 PDT rule removes a key barrier to day trading for retail investors with smaller accounts

Retail investors with less than $25,000 can now execute unlimited day trades without facing account restrictions. The SEC eliminated the $25,000 minimum equity requirement for day traders under the Pattern Day Trader (PDT) rule, removing a structural barrier that had limited intraday trading activity for smaller accounts. Traders who previously had to ration day trades or boost their balances to avoid restrictions can now trade freely. Increased trading flexibility is expected to raise stock and options trading volumes among retail investors. Higher trading volumes will increase order-flow revenue for retail trading platforms like Webull and Robinhood. Webull and Robinhood stocks rose in response to the rule change as investors anticipated stronger transaction-driven revenue growth.