The SEC's Pattern Day Trader rule is dead, at least on Robinhood. The $25,000 minimum account balance requirement and the flagging system that blocked retail traders from making more than three day trades in a rolling five-day period are gone on the platform. Robinhood VP of Product Abhishek Fatehpuria explains the mechanics of what changed and what traders can now do.
This matters because the PDT rule has been the single biggest structural barrier between retail traders and active intraday strategies for decades. Removing it on a platform with millions of retail users is not a minor UI update. The video is worth watching for Fatehpuria's specific breakdown of how Robinhood engineered around the rule and what account types or conditions apply.
The options trading disclaimer attached to this announcement is not an accident. The most consequential question the video likely addresses, but does not answer in the description, is whether unlimited day trading access accelerates retail losses in derivatives markets. Read the fine print, then watch the video.
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