SEC approves FINRA rule change ending the pattern day trader $25,000 minimum
The SEC approved FINRA's amendment to Rule 4210 on April 14, 2026, which removes the pattern day trader definition and the $25,000 minimum equity requirement. Brokers must instead monitor customer margin accounts for intraday margin deficits, whether or not a customer day trades. This is a structural change for retail brokers, and Robinhood shares rose about 7% the next day.
- Approval dated April 14, 2026 (Exchange Act Release No. 105226)
- Removes the $25,000 minimum equity requirement for pattern day traders
- Firms must check for intraday margin deficits whether or not a customer day trades
- Firms that need more time may phase in the change through October 20, 2027
HOOD around the story · hourly24 h reaction ▲ 8.29%
Moves this explains
HOOD+13.41%Apr 13 · Robinhood rose 13.41% on 2026-04-14, the day the SEC approved the FINRA rule change ending the pattern day trader $25,000 minimum, a change that bears directly on Robinhood's active-trader customers. The broader market also rose that day (S&P 500 +1.17%, MU +7.30%, META +4.42%), so part of the move is market-wide.QQQ+1.67%Apr 13 · QQQ rose 1.67% with a broad tech rally (NVDA +3.64%, MU +7.30%, META +4.42%, GOOGL +3.85%) while WTI fell 4.86%. The outlier is HOOD, up 13.41%, on the day the SEC approved FINRA's change eliminating the $25,000 pattern day trader minimum; press reports differ on whether the stock's largest move landed on 14 or 15 April.Source
WilmerHale client alertApr 14, 2026