Aries has implemented the recent FINRA rule changes replacing the prior Pattern Day Trader requirements with updated intraday margin standards.
As a result, the former Pattern Day Trader, or PDT, framework no longer applies at Aries. This means margin accounts are no longer restricted based on the prior PDT rule, including the former requirement to maintain at least $25,000 in account equity after making a certain number of day trades.
What changed?
Previously, a margin account could be designated as a Pattern Day Trader if it completed four or more day trades within five business days, subject to certain conditions. Accounts designated as Pattern Day Traders were generally required to maintain at least $25,000 in equity to continue day trading.
Under the updated framework, Aries no longer applies the prior PDT designation, day-trade count restriction, or $25,000 PDT minimum equity requirement.
Does this mean I can day trade without restrictions?
Not exactly.
Although the prior PDT rule no longer applies at Aries, margin accounts are still subject to margin requirements and firm risk controls. Your ability to place trades may depend on your available buying power, account equity, positions, concentration, volatility, maintenance requirements, and other risk factors.
Your account may still be subject to trading restrictions, margin calls, liquidation, or other account limitations if it does not meet applicable margin or risk requirements.
Does this apply to cash accounts?
No. These changes relate to margin accounts.
Cash accounts are still subject to cash-account settlement rules. This means cash accounts may still be subject to Good Faith Violations, freeriding violations, or other restrictions related to the use of unsettled funds.
If you actively trade in a cash account, it is important to understand how settlement works before reusing proceeds from recent sales.
Important risks
Margin trading involves additional risk and is not appropriate for every investor. A margin account may provide additional trading flexibility, but it can also increase losses. You may be charged margin interest if you borrow funds, and Aries may liquidate securities in your account without prior notice if your account does not meet margin requirements.
Before using margin, please review the margin agreement and margin risk disclosures carefully.