Regulators officially eliminated the Pattern Day Trader (PDT) rule on June 4, 2026. The 25-year-old regulation is now defunct. It previously required a $25,000 minimum balance for active traders. This requirement applied to anyone making four or more day trades within five business days. The pattern day trader designation and high equity requirements are now fully removed.
The policy shift benefits retail-focused platforms like Interactive Brokers, Robinhood, and Webull. Firms expect an increase in transaction volumes and new client acquisition. The change allows investors with smaller accounts to participate in active trading. A modern, risk-based intraday margin framework replaces the legacy rule.