How To Avoid PDT On Robinhood

To avoid the Pattern Day Trader (PDT) rule on Robinhood, you need to manage your trades and account type carefully. Robinhood is a U.S. broker and enforces PDT rules on margin accounts in accordance with FINRA regulations.

🚨 What Triggers PDT on Robinhood?

You’ll be flagged as a Pattern Day Trader if you:

Make 4 or more day trades (buy and sell the same stock in one trading day)
Within 5 trading days
Using a margin account
And those trades represent more than 6% of your total trades

Once flagged, you’ll need to maintain $25,000+ in your account or be restricted from day trading.

✅ How to Avoid PDT on Robinhood

1. Use a Cash Account

Switch to a cash account (no margin = no PDT).
In a cash account:
- You can make unlimited day trades
- But only with settled funds (takes 1–2 business days to settle after a trade)
How to switch:
1. Go to Settings > Account Types
2. Turn off Instant Settlement / Margin
3. Confirm switch to cash account

✅ Best option for small accounts.

2. Keep Day Trades Under 4 per 5-Day Period

You can place up to 3 day trades in 5 business days.
Robinhood warns you if you’re nearing the limit.

📌 Tip: Track this manually or in the Robinhood app under “Day Trades”.

3. Maintain $25,000+ Account Balance

If your account is funded with $25,000 or more, PDT restrictions don’t apply.
Can use margin freely for day trading.

⚠️ Make sure the balance stays above $25K at all times, or you’ll be restricted again.

4. Trade Options Strategically

Options trades can also trigger the PDT rule if opened and closed the same day.
But multi-leg options trades (like spreads) are counted as one trade if executed as a set — reduces PDT exposure.

5. Trade Longer-Term (Avoid Day Trades)

Hold positions overnight to avoid day trading classification.
Use swing trading or longer time-frame setups.

6. Use Another Broker for Day Trading

If Robinhood’s limitations are too tight, consider using:

Cash accounts with brokers like Webull, Fidelity, or TD Ameritrade
Or futures/forex brokers (which aren’t subject to PDT at all)

🔒 What Happens If You Break the PDT Rule?

Robinhood may:

Restrict your account for 90 days (you can’t make day trades)
Require you to fund to $25,000
Or disable margin temporarily

If flagged, you can request one PDT flag removal per lifetime — use it wisely.

Summary: Best Ways to Avoid PDT on Robinhood

Method	Works With Small Accounts?	Notes
✅ Use Cash Account	✅	Unlimited trades with settled funds
✅ Limit to 3 Day Trades in 5 Days	✅	Simple, but restrictive
✅ Keep Balance > $25K	❌ (needs high capital)	Fully lifts PDT
❌ Use Margin Without $25K	❌	Triggers PDT
✅ Trade Swing/Longer-Term	✅	Avoids day trade classification