Robinhood, Webull Soar on Day-Trade Rule Repeal

Shares of retail trading platforms rallied Tuesday, with Robinhood jumping 7% and Webull gaining 4%, even as the broader crypto market remained muted. The surge reflects growing expectations that the repeal of a longstanding day trading rule will unlock active trading for millions of smaller accounts.

The eliminated regulation, known as the pattern day trader rule, had required brokerages to restrict accounts with less than $25,000 in equity from making more than three day trades in a five-day window. Without that constraint, retail investors can now execute multiple trades per day, allowing more frequent participation in volatile assets such as cryptocurrencies.

The change is seen as especially beneficial for crypto order flow, which has been subdued amid quiet market conditions. By removing the capital threshold, platforms like Robinhood and Webull could see a sharp increase in trading volume, boosting transaction-based revenue. Analysts note that these brokers rely on order flow to generate income from commission-free trading.

The rallies come despite little movement in Bitcoin and other major tokens, indicating investors are pricing in future activity rather than current conditions. While the pace of adoption remains uncertain, the regulatory shift marks a clear step toward a more permissive environment for retail speculation.