Retail Traders Break Free: PDT Rule Finally Gets the Axe

Funeral for a Rule Nobody Liked

The PDT rule was introduced in 2001, back when flip phones were cutting edge and trading chatrooms looked like AOL forums. The theory? Protect small accounts from blowing up. The reality? Protect brokerage lawyers from paperwork while retail traders developed ninja-like workarounds (cash accounts, offshore brokers, and the classic “just wait until Friday, mate”).

Enter the Regulators With a Late Pass

Fast forward to 2025. FINRA’s board finally voted to scrap the dusty $25k minimum. Instead, brokers will apply intraday margin checks based on real-time risk exposure. Translation: you no longer need a trust fund to overtrade – you just need to survive the algo babysitter watching your positions.

SEC approval is still pending, which means we’re in the awkward limbo where the bar is “closing soon” but everyone’s already halfway on the dance floor. Implementation is pencilled for early to mid-2026. Until then? Same old three-day trades rule.

The Good, The Bad, The Retail Ugly

• The Good: Smaller accounts finally get access to the same intraday opportunities without scraping together $25k.

• The Bad: Brokerages can still impose their own controls – so don’t expect Robinhood to suddenly let you lever your gran’s pension.

• The Ugly: More retail day traders means more people discovering “risk-managed chaos” isn’t the same as “infinite free money.”

In short, the moat is gone – but the crocodiles are still there.