How To Avoid PDT Rule Weibull
To avoid the Pattern Day Trader (PDT) rule on Webull, you need to understand how Webull enforces the rule and then use legal workarounds that match your account size and trading style.
πΉ What is the PDT Rule (Webull Enforces This)
- Applies to margin accounts
- You become a Pattern Day Trader if you make: 4 or more day trades in a rolling 5-business-day period, and those trades are more than 6% of your total trades
Once flagged, Webull requires you to maintain $25,000 minimum equity in your account to continue day trading freely.
β Ways to Avoid the PDT Rule on Webull
1. Switch to a Cash Account
- Cash accounts are NOT subject to PDT rules
- You can make unlimited day trades, but only with settled funds
- Trade size limited to how much cash has settled (T+2 for stocks)
How to switch on Webull:
- Go to the Webull app
- Tap Menu > Accounts
- Choose to open a new cash account or switch from margin to cash
π Best method for small accounts
2. Keep Day Trades β€ 3 in Any 5-Day Period
- Webull tracks your day trades and warns you when you’re close.
- You can see your day trade count in the app under: Account β Day Trade Counter
π Stay under the PDT threshold: no more than 3 day trades every 5 business days
3. Maintain an Account Balance Over $25,000
- If you keep $25K or more in your margin account:
- PDT restrictions no longer apply
- You can day trade as much as you want
β οΈ Must maintain that balance at all times
4. Trade Options (Carefully)
- Options are also subject to PDT rules if bought and sold same day
- However, multi-leg option strategies (like spreads) are considered 1 trade when entered/exited as a set
- Helps reduce your day trade count
5. Use Multiple Brokerage Accounts
- Spread day trades between Webull and another broker (like Robinhood, Fidelity, or TD Ameritrade)
- Helps avoid hitting the 3-trade limit on one platform
- Requires careful management
6. Trade Other Markets (No PDT Rule)
If you want to day trade without restrictions:
Market | PDT-Free? | Platform |
---|---|---|
β Futures | Yes | NinjaTrader, Tradovate, TD Ameritrade |
β Forex | Yes | OANDA, IG, MetaTrader |
β Stocks on Margin | No | Webull, Robinhood, etc. (subject to PDT) |
π« What Not to Do
- Donβt try to trick the system β e.g., switching accounts mid-trade or trading on unsettled funds in cash accounts β can get your account frozen
- If flagged as a PDT, Webull may:
- Lock your account for 90 days
- Restrict buying power
- Require you to deposit $25K
π§ Summary: Best PDT Workarounds on Webull
Strategy | PDT-Free? | Ideal For |
---|---|---|
β Use a Cash Account | β | Small accounts |
β Limit to 3 Day Trades in 5 Days | β | Casual traders |
β Keep Account Above $25K | β | Frequent traders with capital |
β Trade Futures/Forex (not on Webull) | β | Active day traders |
β Use Multiple Brokers | β | Active, disciplined traders |