Starting Thursday, traders will find rapid‑fire stock and options orders easier as the long‑standing pattern day trader rule is eliminated. Robinhood Markets and Webull announced they are dropping the restriction immediately, while Charles Schwab says it will follow in the coming days. The rule, born in 2001, forced active accounts to keep a sizable cash cushion for the first time in two decades.

Under the original regulation, any client flagged as a pattern day trader had to maintain at least $25,000 in equity across cash and securities in a margin account, or similar. The capital requirement was intended to curb reckless leverage after the dot‑com bust, but critics argued it barred small investors from frequent trading and raised compliance costs for brokers.

With the rule gone, brokerages can streamline onboarding and reduce margin‑account friction, likely boosting trade volume on platforms that cater to retail day traders. However, the removal shifts risk back onto investors, who may now trade on borrowed funds without the protective equity buffer, and could affect margin‑call policies. Regulators have not indicated a replacement framework, leaving risk management to firms and customers.