What was the PDT rule?
In one line: The pattern day trader rule once required US margin accounts that day traded often to keep $25,000. That minimum was eliminated in 2026.
What it was
Under the old FINRA rule, you were a pattern day trader if you made four or more day trades within five business days in a margin account. A day trade means buying and selling the same stock on the same day.
Once flagged, you had to keep at least $25,000 in the account to keep day trading. Fall below it, and the broker would block new day trades until the balance was back up.
A simple example (the old rule)
A trader had $10,000 in a margin account. From Monday to Thursday, they made one day trade each day — four in five business days.
Under the old rule, the account was flagged. With less than $25,000, they couldn't place more day trades until they deposited more money or a restriction period passed.
What changed in 2026
The $25,000 minimum is gone. The SEC approved the change in April 2026, and FINRA's new rule took effect in June 2026. The details are on finra.org.
That doesn't mean "no rules." Brokers can still set their own requirements for margin accounts and day trading. Cash accounts still have settlement rules, so money from a sale may not be usable straight away.
Many older articles and videos still describe the $25,000 rule as if it applies. Check your broker's current terms, not a post from a few years ago.
Why it matters
The old rule shaped how many small accounts traded — fewer trades, or switching to futures and forex, which it never covered. Now the choice is about your plan, not a balance line.
The rule's end changes nothing about risk. A small, fixed risk per trade still matters most. See how much money to start trading.
A common mistake
Treating the change as a reason to trade more. Being allowed to make more day trades isn't the same as having more good setups. A daily loss limit is still the guard rail.
Questions
Does the PDT rule still exist?
The $25,000 minimum was eliminated in 2026. Your broker may still have its own rules, so check them.
Did the PDT rule apply to futures or forex?
No. It applied to US stock and options trading in margin accounts.
Can I day trade in a cash account?
Generally yes, with settled money. Settlement rules can limit how quickly you reuse funds after a sale.
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