Yes. FINRA replaced the pattern day trader (PDT) rule, including the $25,000 minimum equity requirement and the day trade count, with new intraday margin standards that took effect June 4, 2026. Brokers that need more time can phase in the change until October 20, 2027, so check how your own broker is applying it.
- The SEC approved FINRA’s change to Rule 4210 on April 14, 2026.
- FINRA Regulatory Notice 26-10 set the effective date as June 4, 2026.
- The $25,000 PDT minimum and the day trade count are gone under the new rule.
- Brokers can phase in the change until October 20, 2027.
- Margin is still required. The new rule ties it to your positions during the day.
For years, the PDT rule was one of the biggest hurdles for small accounts. That has changed. Here is what is confirmed by FINRA and the SEC, as of October 21, 2026.
What was the PDT rule?
The pattern day trader rule was part of FINRA Rule 4210, the margin rule. It applied to margin accounts. It used a count of day trades to label a customer a “pattern day trader.” Pattern day traders had to keep at least $25,000 in equity in their account.
Many traders found it limiting. FINRA says customers and brokers had long voiced concern that the old requirements were restrictive and outdated.
When did the PDT rule change?
Here is the confirmed timeline from official sources:
| Date | What happened |
|---|---|
| Dec 29, 2025 | FINRA filed the rule change with the SEC (SR-FINRA-2025-017). |
| Apr 14, 2026 | The SEC approved it (Release No. 34-105226). |
| Apr 20, 2026 | FINRA published Regulatory Notice 26-10. |
| May 19, 2026 | FINRA published Notice 26-11 with interpretations and investor materials. |
| Jun 4, 2026 | The new intraday margin standards took effect. |
| Oct 20, 2027 | The phase-in period ends for brokers that need more time. |
What replaced the PDT rule?
FINRA replaced it with an “intraday margin” standard. Instead of counting day trades, your broker checks whether your account has enough equity for the positions you hold during the day.
FINRA describes the main pieces this way:
- Brokers figure out an “intraday margin deficit” on days when you make trades that use up margin, such as buying stock or shorting.
- A deficit must be met as promptly as possible, for example by depositing funds.
- If a customer makes a practice of not meeting deficits, and one isn’t met by the fifth business day, the broker must restrict new margin borrowing for 90 days or until it is met.
- Small deficits, up to the lesser of 5% of account equity or $1,000, don’t count toward that practice.
The regular maintenance margin rules still apply. The new rule adds to them.
Why does my broker still show the PDT rule?
FINRA lets brokers that need more time phase in the new rule over 18 months, until October 20, 2027. So your broker may still be moving over to the new system.
Check your broker’s help center or ask them directly. Ask when they switched, or will switch, to the intraday margin standard.
Does the change affect cash accounts?
The PDT rule was part of the margin rule, so it applied to margin accounts. The new intraday margin standard is also a margin rule. Cash accounts still follow their normal settlement rules for using unsettled funds. Your broker can explain how it applies to your account.
How can I day trade wisely under the new rule?
More freedom is great news for small accounts. A few habits help:
- Know your broker’s margin rules before you trade.
- Use limit orders on fast-moving small caps.
- Watch for trading halts and the SSR stock rule.
- Remember that margin can increase losses as well as gains.
Frequently asked questions
Is the PDT rule gone?
Yes. FINRA replaced the pattern day trader rule, including the $25,000 minimum equity requirement, with new intraday margin standards effective June 4, 2026. Brokers can phase in the change until October 20, 2027.
When did the PDT rule change?
The SEC approved FINRA’s change on April 14, 2026. FINRA announced it in Regulatory Notice 26-10 on April 20, 2026, and it took effect June 4, 2026.
Do I still need $25,000 to day trade?
Not under FINRA’s new rule, which removed the $25,000 pattern day trader minimum. Your broker may still be phasing in the change until October 20, 2027, and can set its own house requirements, so check with them.
What replaced the PDT rule?
FINRA’s new intraday margin standard in Rule 4210. Brokers check whether your margin account has enough equity for your positions during the day, instead of counting day trades.
Why does my broker still apply the PDT rule?
FINRA allows brokers that need more time to phase in the new rule over 18 months, until October 20, 2027. Ask your broker for its switch date.
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Sources
- FINRA Regulatory Notice 26-10: New intraday margin standards replace day trading margin requirements (Apr 20, 2026)
- FINRA Regulatory Notice 26-11: Interpretations and investor education materials (May 19, 2026)
- SEC Release No. 34-105226: Order approving SR-FINRA-2025-017 (Apr 14, 2026)
- FINRA Rule 4210 (Margin Requirements)
Not financial advice. This article is for educational purposes only and is not financial, investment, legal or tax advice. It is published by Trade Conquest, owned and operated by Nite Cat, LLC. Rules change; check the cited official sources for the latest version. Trading carries a risk of loss. Trade Conquest does not recommend buying or selling any security.