How to Get Unlimited Day Trades on Robinhood (2024)

FAQs

How to Get Unlimited Day Trades on Robinhood? ›

With Robinhood Gold, you can bypass the PDT rule and enjoy unlimited day trades, even with an account balance below $25,000. Consider Opening a Cash Account: If you prefer not to upgrade to Robinhood Gold or maintain a high account balance, you can open a cash account instead of a margin account.

Switch to a cash account.

A cash account isn't subject to PDT regulation. This will allow you to continue day trading and regain access to our Stock Lending and Brokerage cash sweep programs.

On the 2nd and 3rd day trades, you'll be given a few options to help avoid getting flagged. Switch to a cash account. A cash account isn't subject to PDT regulation. This will allow you to continue day trading and participating in the Stock Lending and Brokerage cash sweep programs.

If you are in a regular cash account then you can place as many day trades as you would like until your cash is used up. The only catch to this is you have to wait for your trades to settle before you can use that cash again.

With a cash account, you can day trade without the $25k minimum, but you're limited by the settlement period of funds, typically two business days after a trade. Margin accounts offer more flexibility but come with the PDT rule and increased risks due to leverage.

These restrictions are in place to ensure compliance with the Financial Industry Regulatory Authority (FINRA) rules and regulations. Minimum Equity Requirement: As a pattern day trader, you are required to maintain a minimum equity of $25,000 in your margin account on any day that you engage in day trading activities.

Flagged as a Day Trader on Robinhood? You've made a day trade when you buy and sell the same stock or options contract on the same trading day. As I mentioned above, your trading is restricted to unlimited day trades unless you have an equity balance of at least $25,000 in your account.

What is the 3 5 7 rule in trading? A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

First, pattern day traders must maintain minimum equity of $25,000 in their margin account on any day that the customer day trades. This required minimum equity, which can be a combination of cash and eligible securities, must be in your account prior to engaging in any day-trading activities.

What happens if Robinhood flags you as a day trader? ›

If you are marked as a Pattern Day Trader, and you do not maintain the minimum $25,000 requirement, you will not be able to continue day trading without further restrictions being imposed on your account.

Absolutely! As long as you abide by the FINRA regulations for pattern day trading, then you can trade to your heart's content with Robinhood's zero-commission trading policy. Robinhood allows users to day trade stocks, ETFs, stock options contracts, and even cryptocurrencies with no trading fees.

Traditionally, the markets are open from 9:30 AM ET-4 PM ET during regular business days (Monday-Friday, except holidays). But with extended-hours trading and the Robinhood 24 Hour Market, you can execute trades from 8 PM ET Sunday until 8 PM ET Friday, with some restrictions.

Market hours

Traditionally, the markets are open from 9:30 AM ET-4 PM ET during regular business days (Monday-Friday, except holidays). But with extended-hours trading and the Robinhood 24 Hour Market, you can execute trades from 8 PM ET Sunday until 8 PM ET Friday, with some restrictions.

Because of pattern day trade restrictions, you're generally limited to no more than 3 day trades in a 5 trading day period, unless you have at least $25,000 of portfolio value (minus any crypto positions) in your margin account at the end of the previous day.

You can day trade without $25k in accounts with brokers that do not enforce the Pattern Day Trader rule, which typically applies to U.S. stock markets. Consider forex or futures markets, which have different regulations and often lower entry barriers for day trading. Swing trading is another option.