Webull allows day trading, but the rules depend on your account type and how much money you have in it

You can day trade on Webull if you meet the Pattern Day Trader (PDT) rule, which is a federal requirement, not a Webull rule. The PDT rule says you need at least $25,000 in your account to make more than three day trades in a rolling five-business-day period. If your account falls below $25,000, Webull will restrict your day trading until you deposit more money or your account balance rises.

Webull does not add extra restrictions on top of the PDT rule. You can day trade stocks, options, and cryptocurrencies on the platform if you meet the $25,000 minimum. However, the way Webull enforces this rule and what happens when you break it matters for your trading activity.

Key Takeaways

  • The $25,000 minimum balance is a federal rule enforced by Webull, not a choice Webull made on its own.
  • If your account drops below $25,000, Webull will flag day trades and may restrict your ability to open new positions until the balance rises again.
  • Day trades count as any buy and sell of the same security within the same trading day, regardless of profit or loss.
  • Webull counts day trades across all account types you hold with them, so a day trade in your cash account counts toward the limit in your margin account.

What counts as a day trade on Webull

A day trade is when you buy and sell the same security on the same trading day. It does not matter whether you made money or lost money. It does not matter whether you sold first and bought second (a short sale). If the buy and sell happen on the same calendar day, Webull counts it as one day trade.

Webull counts day trades in stocks, options, and cryptocurrencies. If you buy 100 shares of Apple at 10 a.m. and sell 100 shares of Apple at 2 p.m., that is one day trade. If you buy one call option contract and sell it the same day, that is one day trade. If you buy Bitcoin and sell it the same day, that is one day trade.

Partial closes count too. If you buy 100 shares and sell 50 shares the same day, that is one day trade. If you sell the other 50 shares the next day, that does not add another day trade — only the same-day portion counts.

The $25,000 minimum and what happens if you fall below it

The $25,000 rule comes from the Financial Industry Regulatory Authority (FINRA), which sets rules for brokers like Webull. If your account balance is $25,000 or higher, you can make as many day trades as you want in a five-business-day rolling window. The moment your account drops below $25,000, the restriction kicks in.

When your account is below $25,000, you are limited to three day trades in any five-business-day rolling period. If you try to make a fourth day trade, Webull will either block the trade or flag it as a violation. Webull's exact response depends on your account settings and whether you have margin enabled.

The five-business-day window rolls forward each day. If you made three day trades on Monday, Tuesday, and Wednesday, you cannot make another day trade until the Monday trades drop out of the window on Friday. The count resets as older trades age out.

Day trading with margin versus cash accounts

Webull offers both margin accounts and cash accounts. A margin account lets you borrow money from Webull to buy securities. A cash account requires you to pay for all purchases with cash you have on hand.

The PDT rule applies to both account types, but the mechanics work differently. On a margin account, you can day trade as long as your account equity stays above $25,000. On a cash account, you face a different restriction: you cannot use the proceeds from a sale to buy the same security on the same day (called a "free ride" violation). However, cash accounts are not subject to the three-trade limit if your balance is below $25,000.

If you hold both a margin account and a cash account with Webull, day trades in one account count toward the limit in the other. Webull treats them as a single account for PDT purposes.

What happens when you hit the day trade limit

If you are below $25,000 and make more than three day trades in five business days, Webull will issue a Day Trade Violation notice. The first violation usually results in a warning. If you continue to violate the rule, Webull may restrict your account from opening new positions for 90 days.

A 90-day restriction means you can only close existing positions — you cannot buy anything new. You can still sell securities you own, but you cannot initiate new purchases. This restriction lifts after 90 days or when your account balance reaches $25,000, whichever comes first.

Some brokers allow you to request a one-time waiver of a day trade violation, but Webull's policy on waivers is not may provide. The safest approach is to monitor your trade count if your account is below $25,000 and avoid the violation in the first place.

Options and cryptocurrency day trading on Webull

Options and cryptocurrency trades follow the same PDT rule as stocks. If you buy and sell an options contract on the same day, that counts as one day trade. If you buy and sell cryptocurrency on the same day, that counts as one day trade. The $25,000 minimum and three-trade limit explore equally.

One difference: options trades settle when ready on Webull, so you can use the proceeds from a sale to buy another option the same day without waiting for settlement. Stocks and cryptocurrencies settle on different timelines, but the day trade rule does not care about settlement — it only cares about the trade date.

How to avoid day trade violations

If your account is below $25,000, track your day trades manually or use Webull's trade history to count them. Webull shows your day trade count in your account dashboard, though you should verify it yourself because the count can lag by a day or two.

If you are close to the three-trade limit, hold positions overnight instead of closing them the same day. A trade that closes the next day does not count as a day trade. You can also spread your trades across different securities — the rule counts individual day trades, not the number of securities you trade.

The simplest way to avoid the restriction is to deposit money until your account reaches $25,000. Once you cross that threshold, the three-trade limit disappears and you can day trade freely.

Frequently Asked Questions

Can I day trade on Webull with less than $25,000?

Yes, but only up to three day trades in any five-business-day rolling period. The $25,000 rule is federal law, not a Webull policy. If you exceed three day trades below $25,000, Webull will flag a violation and may restrict your account from opening new positions for 90 days.

Does Webull count day trades from other brokers?

No. Webull only counts day trades you make on Webull. If you day trade on another broker, those trades do not affect your Webull account. However, each broker enforces the PDT rule separately, so you could hit the limit on multiple brokers independently.

What if I buy a stock one day and sell it the next day?

That is not a day trade. Day trades must happen on the same calendar day. If you buy on Monday and sell on Tuesday, it does not count toward your three-trade limit, even if you are below $25,000.

Can I get my account unrestricted before 90 days?

Yes, if you deposit money to bring your account balance to $25,000 or higher. Once your balance reaches $25,000, the restriction lifts when ready. You do not have to wait the full 90 days.

Do short sales count as day trades?

Yes. If you short a stock (sell first, buy to close later) on the same day, that counts as one day trade. The direction does not matter — only whether the buy and sell happen on the same day.