On September 24, 2025, the Financial Industry Regulatory Authority (FINRA) approved amendments to replace the long-standing $25,000 minimum equity rule for pattern day trading. This change is currently pending approval by the Securities and Exchange Commission (SEC).
The existing rule mandates a minimum account balance of $25,000 in a margin account for traders executing four or more day trades within a five-business-day period. FINRA is replacing this with an intraday margin rule, where buying power will be based on margin requirements for positions, not a fixed equity minimum.
This overhaul reflects the evolution of technology and market access in retail trading since the rule's inception in 2001. The potential change could lead to increased options trading and overall activity for brokerage firms like Robinhood, making active day trading more accessible to smaller accounts.
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