Moomoo Day Trading

Moomoo Pattern Day Trading (PDT) Limit. Can I Day Trade on Moomoo?


Pattern day trading rules at Moomoo. Active trader PDT requirements and limits for margin and cash accounts above/below $25,000 balance. How many day trades does Moomoo allow.


Pattern Day Trading at Moomoo


If you have a Moomoo account and wish to day trade in it, you will need to adhere to some strict guidelines, or else you will be required to deposit at least $25,000 in your account.


How Many Day Trades Does Moomoo Allow


FINRA, or the Financial Industry Regulatory Authority, regulates brokerage firms and mandates that any account which meets the classification of a pattern day-trading account (PDT) must have at least $25,000 in equity (a combination of cash and securities). This is not a policy of Moomoo or your brokerage account, but since your brokerage account is a FINRA member, they are required to comply and enforce this regulation.

There are three defining traits that make an account classify as a PDT account, and all three traits must be met:

1. The account must be a margin account, not a cash account.
2. The account has at least 4 day trades of stocks, options, ETFs, or other securities in a rolling five-business-day period.
3. The account’s day trades are at a minimum 6% of the account’s total trading activity.

All accounts that meet all three of these regulations are classified as a PDT account and need to maintain at least $25,000 in equity. All accounts that do not explicitly meet all three criteria will not classify as a PDT account, meaning there would be no required equity minimum.


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Moomoo PDT Protection


Moomoo has a unique feature that is not offered at most competing brokerage firms. There is a PDT Protection feature which you can add to your account; this feature will enable Moomoo’s software to prevent you from executing a trade that would trigger your account to be flagged as a PDT account.

To turn this option on in the Moomoo app, tap on the lower-right icon shaped like a person in the menu screen. On the following screen, select ‘Account Summary’ and you will be presented with a list of account issues.

If you scroll to the bottom of the list, there is information on day trading which includes the number of day trades registered to your account during the last 5 days. There is also an option here for day trade settings – select this option.

On the following screen you will find Moomoo’s PDT Protection program. A button allows you to toggle this feature on or off.


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Methods to Circumvent the PDT Rule


If you choose not to activate the PDT protection, you will need to ensure you do not trigger a PDT classification or else you will have to deposit $25,000 in your account. There are some steps you can take to legally avoid PDT classification.

At Moomoo, all brokerage accounts are opened as margin accounts. You are able to downgrade your account to a cash account, which would ensure you do not meet the PDT classification because a margin account is one of the three criteria.

If you decide to have a cash account and day trade, be aware that you can only trade with settled funds, and trades take 2 business days to settle.


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About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.