## Day Trading Gets a Facelift: FINRA to Scrap $25,000 Minimum
The landscape of retail trading is about to change! FINRA (Financial Industry Regulatory Authority) has approved amendments that could significantly impact how active day traders operate. This move aims to dismantle the controversial $25,000 minimum equity rule, opening up day trading to a wider audience. Here’s a quick rundown:
- The Old Rule: The current rule requires traders to maintain a minimum of $25,000 in a margin account to execute four or more day trades within a five-business-day period. This was implemented in 2001 to protect smaller traders from excessive risk.
- The New Approach: FINRA is replacing the $25,000 minimum with an intraday margin rule. This means intraday buying power will be determined by the margin requirements of the positions taken during the day, not a fixed equity amount.
- Why the Change? Regulators believe technology and market access have evolved significantly since the original rule was established.
- Potential Impact: The change could encourage more options trading and potentially benefit brokers like Robinhood. Robinhood’s stock saw a positive reaction to the news.
- Next Steps: The amendments are still pending approval from the Securities and Exchange Commission (SEC).
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Source: https://www.cnbc.com/2025/09/24/day-trading-is-about-to-get-easier-for-smaller-retail-investors.html