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PDT Is Gone: Free Explainer
The $25,000 PDT rule has been replaced. Here's what changed, the dates that matter, the new 90-day freeze, and what to ask your broker, in four plain-English pages.
Overview
In 2026 FINRA replaced the pattern-day-trader rule (4 day trades in 5 business days, $25,000 minimum) with new intraday margin standards. The SEC approved the change on Apr 14, 2026, and it took effect Jun 4, 2026. But brokers can phase it in until Oct 20, 2027, so yours may still be using the old rule. This free explainer covers it in plain English, using the public FINRA and SEC documents.
What's inside
- What changed: the old rule and the new rule, side by side
- The dates: filing, SEC approval, FINRA's notices, the effective date and the end of the phase-in
- The new basics: intraday margin deficits, how brokers monitor them, and how they get covered
- The 90-day freeze: when it applies, what it restricts, and the small-deficit exception
- Cash accounts: why they work differently
- A checklist of 8 questions to ask your broker
- Sources: SEC Release No. 34-105226, FINRA Regulatory Notices 26-10 and 26-11, and FINRA's investor page
Look inside
Screenshots of the actual files. Example data is fictional. Select an image to open it full size.
Who it's not for
Anyone looking for trade ideas, signals, or advice on whether to use margin. There are none here.
FAQ
Is this legal advice?
No. It's general information summarized from public FINRA and SEC documents as of Oct 20, 2026. Your broker's agreement and notices control your account.
Is the PDT rule gone at my broker?
Maybe not yet. Firms can phase in the new standards until Oct 20, 2027. The explainer lists the questions to ask.
How long is it?
Four pages, US Letter PDF.