Investing.com — Online brokerage stocks are trading higher Thursday after a landmark regulatory change took effect: FINRA’s elimination of the pattern day trader (PDT) rule, ending a more than two-decade-old requirement that forced retail traders to maintain at least $25,000 in equity to execute frequent day trades. Robinhood Markets Inc (NASDAQ:HOOD) is leading the group, trading up 3.62% at $85.85 with an intraday high of $86.78 on volume of more than 13.6 million shares.
Webull Corp (NASDAQ:BULL)is up 1.66% at $6.00, while eToro Group Ltd (NASDAQ:ETOR) is gaining 1.76% to trade at $39.88.
FINRA’s amendment to Rule 4210, which the SEC approved on April 14, 2026 and announced in Regulatory Notice 26-10, officially took effect today. The change eliminates the $25,000 minimum equity threshold, the four-trades-in-five-days count, and the “pattern day trader” designation entirely. In their place, brokers will monitor intraday risk through margin exposure relative to open positions — a dynamic, technology-driven standard rather than a static dollar floor. A separate $2,000 minimum to trade on margin and standard 25% maintenance margin remain in place. Brokers have until October 20, 2027 to fully phase in the new intraday margin framework, meaning some may still apply old rules in the interim.
Robinhood and other brokers are lifting PDT restrictions that dated to the dot-com era, when regulators introduced the rule following heavy retail losses to prevent blowups among smaller accounts.
“Eliminating the $25,000 PDT threshold removes an arbitrary wealth barrier that has penalized smaller accounts for decades,” said Anthony Denier, Group President and U.S. CEO of Webull. “By shifting the focus from static account minimums to actual portfolio risk, retail investors gain the flexibility to manage positions when they need to, not just when their balance allows.”
Denier added that the shift “signals that regulation is finally catching up to 21st-century technology,” arguing that continuous, automated risk monitoring is “far more protective and precise than a blanket dollar amount.”
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