US EditionSEC Approves Ending Pattern Day Trader Rule, $25K Minimum
The new framework replaces the pattern day trader label with real-time margin standards for all investors and expands oversight to 0DTE options.
- On Tuesday, the U.S. Securities and Exchange Commission approved sweeping changes to day trading restrictions, eliminating the long-standing $25,000 minimum equity requirement for retail investors.
- Introduced in 2001 after the dot-com crash, the old rule barred traders with less than $25,000 from making more than four day trades within five business days. The new framework replaces this with real-time margin requirements.
- Webull Corp. group president Anthony Denier called the reforms "long overdue," while Robinhood Markets Inc. chief brokerage officer Steve Quirk said the changes reflect "the modern trading landscape and ensure everyone has the freedom to invest."
- Shares of Robinhood and Webull surged on Wednesday following the announcement, with analysts projecting the move will boost trading volume and platform engagement by removing barriers for smaller investors.
- Firms have an 18-month transition period to adjust systems, with the new margin standards taking effect 45 days after the Financial Industry Regulatory Authority issues its final Regulatory Notice.
14 Articles
14 Articles
Why Loosening Rules for Day Traders Is a Victory for Brokers
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Stock Market Today, April 15: Robinhood Markets Surges After SEC Eases Day Trading Rules
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Robinhood jumps after SEC approves removal of day-trading limits | Honolulu Star-Advertiser
Shares of retail trading platforms Robinhood and Webull surged today after the Securities and Exchange Commission paved the way for a new regulatory framework on the day-trading limit for smaller investors.
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