SEC axes $25,000 pattern day trader minimum after 25 years, FINRA pivots to risk-based intraday margin
sec.gov •
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Promote with Leviathan NewsSEC approved FINRA's amendment to Rule 4210 (SR-FINRA-2025-017), killing the pattern day trader designation — the 2001-era rule that flagged anyone making 4+ day trades in 5 business days and required $25,000 minimum equity. The replacement is a risk-based intraday margin framework where buying power scales with actual position characteristics like volatility and concentration rather than a flat capital floor. Retail accounts will likely need just ~$2,000 (standard Reg-T minimum) instead of $25K to day trade. After 25 years as the most despised barrier in retail trading, PDT is dead.
TLDR by @Benthic
More coverage
- Pattern Day Trader (PDT) Rule Change: What's New - E-Trade (us.etrade.com)
- SEC Eliminates Pattern Day Trading Rule for Small Investors - Gotrade (heygotrade.com)
- Pattern Day Trader | Investor.gov (investor.gov)
- Pattern Day Trading - Tastytrade (tastytrade.com)
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