SEC Formally Scraps $25,000 Day-Trading Threshold as PDT Rule Ends June 4

The U.S. Securities and Exchange Commission’s pattern day trader, or PDT, rule has been in place for about 25 years, requiring retail accounts that frequently engage in day trading to maintain at least $25,000 in assets. The threshold has long limited trading flexibility for smaller investors and shaped how brokerages manage accounts engaged in frequent intraday trading.

The SEC has formally abolished the $25,000 minimum asset threshold, with the PDT rule set to end on June 4. It will be replaced by a real-time intraday margin framework that calculates margin requirements based on an account’s current positions and risk. By eliminating the static threshold, the new system is expected to lower the capital barrier for retail investors participating in day trading.