Yes, you can day trade on Webull, but you must follow the pattern day trading rule if your account holds less than $25,000

Webull allows day trading — buying and selling the same security on the same day — but the rules depend on your account balance. If you have $25,000 or more in your account, you can day trade without restriction. If you have less than $25,000, the Financial Industry Regulatory Authority (FINRA) pattern day trading rule limits you to no more than three day trades in any five business days. Violating this rule triggers a 90-day restriction on your account.

The $25,000 threshold is a FINRA requirement, not a Webull rule. It applies to day trading on any broker, including Webull. Your account balance is measured at the end of each business day, so a single large deposit or withdrawal can move you above or below the threshold.

Key Takeaways

  • Accounts with $25,000 or more can day trade without limits; accounts below that threshold are restricted to three day trades per five business days.
  • A day trade is defined as opening and closing a position in the same security on the same trading day, and the rule applies to stocks, options, and certain other securities.
  • Webull enforces the pattern day trading rule automatically — if you exceed three trades in five days with under $25,000, your account is flagged for 90 days.
  • During a 90-day restriction, you can still buy securities but cannot sell them the same day, and you cannot open new positions that would violate the rule.
  • Depositing funds to reach $25,000 removes the restriction when ready, but the funds must settle (usually two business days for bank transfers).

How Webull counts a day trade

A day trade occurs when you buy and sell the same security on the same calendar day. Webull counts this as one day trade, regardless of whether you buy first or sell first (a short sale followed by a buy-back counts the same way). The rule applies to stocks, options, and exchange-traded funds (ETFs), but not to bonds or mutual funds.

If you buy 100 shares of Apple on Monday and sell them on Tuesday, that is not a day trade. If you buy 100 shares on Monday, sell them on Monday, and buy them again on Monday, that counts as two day trades. Webull's platform shows your day trade count in your account dashboard, updated at the end of each trading day.

The five-business-day window is a rolling count. If you make three day trades on Monday, you can make zero day trades Tuesday through Friday. On the following Monday (the sixth business day), your first Monday trade drops out of the window, and you can make one more trade that week.

What happens when you hit the pattern day trading limit

If you make more than three day trades in five business days with an account balance under $25,000, Webull will flag your account as a pattern day trader. You will receive a notification from Webull, usually within one business day of the violation. The restriction lasts 90 calendar days from the date of the violation.

During the restriction, you can still buy securities, but you cannot sell them the same day. You also cannot open new positions that would create a day trade. For example, if you own 100 shares of Microsoft and want to sell them on the day you buy them, you cannot. If you want to buy 50 shares and sell 50 shares on the same day, you cannot. The restriction applies to all securities in your account.

After 90 days, the restriction lifts automatically. You do not need to contact Webull or take any action. Your account returns to the three-trades-per-five-days limit (or unlimited trading if your balance is now $25,000 or higher).

Raising your account balance to $25,000

Depositing cash to reach $25,000 removes the pattern day trading restriction when ready, even if you are currently in a 90-day restriction period. The deposit must clear and settle in your account before the restriction lifts. Bank transfers typically settle within two business days; wire transfers settle the same day or next business day. Webull will update your account status once the funds are settled.

If your account balance drops below $25,000 after you have been trading without restriction, the pattern day trading rule applies again going forward. However, you do not retroactively lose trades you made while your balance was above $25,000. The rule is forward-looking: once your balance falls below $25,000, your next three-trade window begins counting from that point.

Day trading on margin versus cash accounts

Webull offers both margin accounts and cash accounts. A margin account allows you to borrow money to buy securities; a cash account does not. The pattern day trading rule applies to both account types if your balance is under $25,000. However, margin accounts have an additional consideration: the $25,000 minimum includes both cash and the value of securities you own, while some brokers measure it differently.

On Webull, the $25,000 threshold is measured as your total account equity — cash plus the market value of all positions. If you have $15,000 in cash and $10,000 in stocks, your account equity is $25,000 and you can day trade without restriction. If the stock value drops to $9,000, your equity falls to $24,000 and the restriction applies again.

Cash accounts do not allow margin borrowing, so you can only trade with money you have deposited. Some traders use cash accounts to avoid margin interest charges, but they still face the pattern day trading rule if their balance is under $25,000.

Strategies to stay within the pattern day trading rule

If your account is under $25,000 and you want to trade frequently, you have several options. One is to space out your trades across different five-day windows. If you make two day trades on Monday and one on Tuesday, you have used your three trades for that window. You can make zero trades Wednesday through Friday, then resume on the following Monday.

Another strategy is to hold positions overnight instead of closing them the same day. If you buy a stock on Monday and sell it on Wednesday, it does not count as a day trade. This requires more capital because you are holding multiple positions at once, but it avoids the pattern day trading restriction.

Some traders use multiple brokers to spread their day trades across accounts. However, FINRA counts day trades across all accounts you control at all brokers, so this does not circumvent the rule. Webull will see your day trade count only for trades made on Webull, but FINRA's rule applies to your total trading activity.

Frequently Asked Questions

Does Webull charge a fee if I violate the pattern day trading rule?

Webull does not charge a fee for violating the rule, but your account is restricted for 90 days. You cannot day trade during this period. Some brokers charge a fee; Webull's penalty is the restriction itself, not a dollar amount.

Can I day trade options on Webull?

Yes, options day trades are subject to the same pattern day trading rule as stocks. Buying and selling the same option contract on the same day counts as one day trade. The $25,000 minimum applies to options trading as well.

What if I buy a stock on Friday and sell it on Monday?

That is not a day trade because the trades occur on different calendar days. The pattern day trading rule only applies to trades that open and close on the same day. Friday and Monday are separate trading days.

Does Webull let me trade during pre-market and after-hours sessions?

Webull offers pre-market (4 a.m. to 9:30 a.m. ET) and after-hours (4 p.m. to 8 p.m. ET) trading. Trades during these sessions count toward your day trade limit if they close on the same calendar day. A pre-market buy and a regular-session sell on the same day is one day trade.

If I get restricted, can I still hold positions overnight?

Yes. During a pattern day trading restriction, you can buy and hold securities overnight. You just cannot sell them the same day you buy them. You can sell them the next day without restriction.