FINRA just killed the $25,000 day-trading rule that kept small investors on the sidelines for 25 years

FINRA has eliminated the Pattern Day Trader (PDT) rule — including the $25,000 minimum equity and day‑trading buying power computations — replacing it with intraday, risk‑based margin requirements. Brokerages will monitor accounts in real time, block trades that would create margin deficits, and must begin implementing new systems within 45 days of FINRA’s notice and fully phase them in over 18 months. The change lowers barriers for smaller retail accounts and is likely to boost trading activity at retail brokers (eg, Robinhood), reduce compliance costs tied to the old rule, and shift risk management onto intraday margin controls. Regulators still allow firms to restrict borrowing for accounts that don’t remedy shortfalls, so some investor risk remains.