The PDT rule was replaced on June 4, 2026. Here's what changed.

For years, the rule many new traders ran into first was the pattern day trader (PDT) rule: four or more day trades in five business days in a margin account, and you needed at least $25,000 in equity. In 2026 that rule was replaced. This article summarizes what changed, the dates that matter and what to ask your broker, based on the public SEC and FINRA documents. It's general education, not legal or investment advice, and it isn't a recommendation to trade on margin.

The short version

• FINRA amended its margin rule, Rule 4210, to replace the day-trading margin provisions (including the PDT designation and the $25,000 minimum) with new intraday margin standards.
• The SEC approved the change on April 14, 2026 in Release No. 34-105226.
• FINRA announced it in Regulatory Notice 26-10 (April 20, 2026). The new standards took effect June 4, 2026.
• Brokers have a phase-in period that ends October 20, 2027. Until your broker switches, it may still apply the old PDT rules to your account.

What the old rule did

Under the old provisions, a margin customer who made four or more day trades within five business days could be designated a pattern day trader. A pattern day trader had to keep at least $25,000 of equity in the account, and day-trading buying power was calculated under special rules. Fall below the minimum and day trading was restricted until the account was topped up.

What replaces it

Instead of counting trades, the new approach looks at intraday margin. FINRA's investor page puts it plainly: there's no $25,000 minimum equity requirement for day trading, and no "pattern day trader" designation based on counting trades. Firms instead monitor whether trading during the day creates an intraday margin deficit, meaning the account's positions during the day need more margin than the account has.

Some basics from FINRA's materials:

• Margin accounts still need minimum equity. The general $2,000 minimum to trade on margin still applies.
• Deficits must be covered. An intraday margin deficit has to be met as promptly as possible. It stays outstanding until it's covered, and there's an outer time limit.
• Maintenance margin applies during the day, not just at the close, under the new standards.
• Firms can be stricter. Brokers can set their own, tighter house rules, and many do.

The 90-day freeze

The part most likely to surprise people is a new restriction. According to Regulatory Notice 26-10, if a customer makes a practice of not covering intraday margin deficits, and a deficit is not met by the close of the fifth business day, the firm must restrict the account for 90 calendar days (or until the deficit is covered). During that time the account can't take on new or increased debit balances or short positions, other than closing out shorts.

There's a small-deficit exception: deficits that don't exceed the lesser of 5% of the account's equity or $1,000, and deficits caused by extraordinary circumstances, don't count toward the "practice" test. The details are in the notice; your broker's agreement and notices control how this works for your account.

What about cash accounts?

Cash accounts were never subject to the PDT rule, because PDT was a margin rule. Cash accounts follow Regulation T's payment rules instead, including the separate 90-day restriction for "freeriding" (selling securities that weren't paid for). That restriction is a different rule from FINRA's new 90-day intraday-margin freeze.

Timeline

Questions to ask your broker

1. Have you switched my account to the new intraday margin standards? If not, when?
2. Until then, do you still count day trades and apply the $25,000 minimum?
3. How and when will you tell me about an intraday margin deficit?
4. How do I cover a deficit, and by when?
5. Do you apply house rules that are stricter than FINRA's?
6. How does the 90-day restriction work at your firm, and how is it lifted?
7. Does any of this apply to my cash account?
8. Where in my account agreement are these rules described?

Write the answers down with the date you asked. If you want everything on one page to keep next to your desk, download our free 4-page PDT Is Gone explainer.

Sources

• SEC Release No. 34-105226 (April 14, 2026), order approving amendments to FINRA Rule 4210: sec.gov/rule-release/34-105226
• FINRA Regulatory Notice 26-10 (April 20, 2026): finra.org/rules-guidance/notices/26-10
• FINRA investor insight, intraday margin requirements: finra.org/investors/insights/intraday-margin-requirements

Summary as of October 20, 2026. Rules and broker practices can change; check the primary sources and your broker.

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