The PDT rule explained (and what replaced it)
Founder of TradeStack. Builds the importer and reviews every broker export format by hand.
FINRA's old pattern day trader (PDT) rule required $25,000 in a margin account after four day trades in five business days. FINRA retired that rule on June 4, 2026 and replaced it with real-time intraday margin monitoring instead of a fixed trade-count and equity floor. Brokers have until October 2027 to fully roll out the change, so some firms may still apply the old $25k rule in the meantime.
What changed, and when
The SEC approved FINRA's amendment to Rule 4210 on April 14, 2026. FINRA published the details in Regulatory Notice 26-10 on April 20, 2026, with an effective date of June 4, 2026. The amendment eliminates the pattern day trader designation entirely, along with the four-trades-in-five-days threshold and the $25,000 minimum equity requirement.
What the old PDT rule required
Under the retired rule, opening and closing the same security on the same trading day in a margin account counted as a day trade. Four or more of those within five business days, making up more than 6% of total trading activity in that window, got the account flagged as a pattern day trader and required $25,000 in equity to keep day trading.
How intraday margin standards work now
Instead of a trade-count threshold and a fixed equity floor, brokers now monitor a customer's real-time intraday margin exposure and required buying power is based on actual market exposure and margin deficiency throughout the trading day, not a static $25,000 line. Brokerages have until October 20, 2027 to fully implement the new standard, so check your own broker's current policy rather than assuming the old or new rule applies.
What this means if you are still under $25,000
You are no longer automatically restricted to three day trades a week purely because of account size, once your broker has implemented the new standard. You still need enough equity to cover your real-time market exposure, and a broker mid-transition may still apply the legacy $25k/four-trade logic until they cut over, so confirm directly with your broker which rule is live on your account.
Why journaling still matters here
Whether you are trading under the old cap or the new intraday margin model, the discipline is the same: log every trade with a setup tag, track how close you run to your broker's margin buffer, and check expectancy per setup so a small early sample still teaches you something.
Frequently asked
Is the PDT rule gone?
Yes, as of June 4, 2026 FINRA retired the pattern day trader designation, the four-trades-in-five-days threshold and the $25,000 minimum equity requirement, replacing them with real-time intraday margin monitoring under amended FINRA Rule 4210.
Do I still need $25,000 to day trade?
Not under the new rule. Buying power is now based on your real-time intraday margin exposure rather than a fixed equity floor. Some brokers are still phasing in the change (they have until October 20, 2027), so confirm your own broker's current policy.
Did the PDT rule apply to futures or cash accounts?
No, and that has not changed. The rule (old or new) applies to margin accounts trading stocks and options with US brokers. Futures accounts are governed by exchange margin requirements, and cash accounts are governed by settlement timing instead.
Sources
Keep reading
TradeStack is a free trading journal. Drop in a CSV and get win rate, profit factor and expectancy automatically.
Start free