How to Get Unlimited Day Trades on Robinhood (2024)

FAQs

How to Get Unlimited Day Trades on Robinhood? ›

Maintain $25,000 in portfolio value.

Getting unlimited day trades on Robinhood typically requires meeting the minimum account balance of $25,000 or upgrading to Robinhood Gold. Alternatively, opening a cash account or exploring swing trading strategies can also provide more flexibility in executing day trades.

If eligible, you can trade multi-leg options, like spreads. Pattern day trading regulations. If you make 4 or more day trades within 5 trading days in a margin account, you may be flagged as a pattern day trader.

According to FINRA rules, if you "execute four or more 'day trades' within five business days" you'll be flagged as a pattern day trader. Therefore, with a margin account under $25k, you'll only have four available day trades in a rolling 5-day period.

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.

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.

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.

Yes, there are two ways to have the restriction removed. You may call 855-525-7634 and request to use your one-time reset request. The removal of the restriction may take 1-2 business days.

How to day trade without getting flagged? ›

Trades with non-marginable securities are subject to cash account rules, not margin account rules, meaning you can day trade in your margin account without fear of being flagged as a pattern day trader.

Just as how long you have to wait to sell a stock after buying it, there is no legal limit on the number of times you can buy and sell the same stock in one day. Again, though, your broker may impose restrictions based on your account type, available capital, and regulatory rules regarding 'Pattern Day Traders'.

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.

The 3–5–7 rule in trading is a risk management principle that suggests allocating a certain percentage of your trading capital to different trades based on their risk levels. Here's how it typically works: 3% Rule: This suggests risking no more than 3% of your trading capital on any single trade.

According to FINRA rules, you're considered a pattern day trader if you execute four or more "day trades" within five business days—provided that the number of day trades represents more than 6 percent of your total trades in the margin account for that same five business day period.

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.

Market hours

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.

However, it's generally accepted that a successful day trader can make between 1% to 2% of their account balance per day. In the case of a $25,000 account, this could translate to approximately $250 to $500 a day.