Robinhood and Webull Soar as SEC Ditches Day Trading Rule

The Pattern Day Trader rule has been repealed by the SEC, allowing more retail traders to participate in day trading. The decision was made official on April 14, 2026, and took effect on June 4, 2026. As a result, brokerages that cater to retail traders are seeing their stocks rise.

Robinhood's shares jumped approximately 7% after the implementation of the new framework, while Webull climbed around 4%. The gains reflect Wall Street's bet that removing the $25,000 minimum equity requirement for day trading will unleash a wave of activity on platforms built for exactly that kind of user.

Webull CEO Anthony Denier said the trading landscape has 'dramatically shifted' following implementation, with substantial increases in trading activity anticipated across the platform. Both Robinhood and Webull updated their policies to allow unlimited day trading after June 4, removing day-trade flags and the 90-day restriction windows that previously hampered margin account holders.

However, some experts question whether increased day trading will produce better outcomes for retail investors. Academic research has consistently shown that frequent individual traders tend to have worse returns than those who trade less frequently.