Thursday marks the first day that the Pattern Day Trader rule no longer applies to accounts under $25,000, the most significant change to retail trading access in a generation, and a potential windfall for three publicly traded brokerages.

HOOD stock is climbing. See the chart and price action here. 

PDT Rule Eliminated 

The U.S. Securities and Exchange Commission (SEC) approved FINRA’s elimination of the PDT designation and its $25,000 minimum equity requirement on April 14, with the new intraday risk-based margin framework taking effect Thursday, June 4. 

For 25 years, any margin account holder who executed four or more day trades in a rolling five-business-day period was flagged as a pattern day trader and locked out unless they maintained a $25,000 floor. That rule is now gone.

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Robinhood

Robinhood Markets, Inc. (NASDAQ:HOOD) came into the day with more fanfare than any broker. 

The company posted a countdown clock on X, and its official account announced: “June 4: The PDT rule will be eliminated, and the $25,000 minimum account balance requirement will officially end. We will be wiping all past PDT flags clean. Soon, customers will be able to trade on Robinhood without worrying about day trading limits again.” 

Robinhood followed-up with ...