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TradeStation Pattern Day Trading (PDT) in 2025
Pattern day trading rules at TradeStation. Pattern day trader PDT requirements and limits for
margin and cash accounts above/below $25,000 balance.
Can you day trade on TradeStation?
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Pattern Day Trading at TradeStation
Interested in day trading? You might consider opening an account at TradeStation. This broker-dealer offers several tools for short-term trading. However, being based in the United States, TradeStation must enforce the pattern-day-trading (PDT) rule. If you're looking for ways to legally bypass this rule, keep reading.
PDT Guidelines from FINRA
FINRA, along with the SEC, regulates the investment market in the United States. Broker-dealers in the U.S. must comply with any rules set by FINRA.
One such rule is the pattern-day-trading rule, or PDT rule. This rule states that a PDT account must always maintain equity of $25,000 or more.
So, what is a PDT account? Here's a breakdown that may feel like a legal loophole:
- The account is a margin account (not a cash account)
- The account executes 4 or more securities day trades (like stocks, options, ETFs) in a rolling 5-business-day period
- The account’s day trades account for 6% or more of the total trading activity
Ways to Evade the Dreaded PDT Flag
Looking closely at the definition of a pattern-day-trading account, we can identify several ways to avoid being classified as such:
Use a cash account instead of a margin account for your day trades. Only margin accounts can be flagged as PDT accounts.
Make 3 or fewer day trades in a rolling 5-business-day period.
Use TradeStation’s simulated trading mode for day trading. Trades made in this mode won’t count against your PDT status.
Keep your total day trades below 6% of your overall trading activity. This way, your account won’t be flagged as a PDT account.
Consider day trading with an offshore broker, though this comes with higher risks, so proceed with caution.
Keeping Track of Day Trades at TradeStation
To monitor your day trades, log into TradeStation’s desktop software. Navigate to Balances, Positions, Orders in the workspace menu to open a new tab with your account details.
In the TradeManager window, you can view your PDT status, the number of day trades you’ve made in the past 4 business days, and whether your account is eligible to make more day trades.
Day Trading on TradeStation
Besides the Balances, Positions, Orders workspace, TradeStation also offers a Day Trader workspace. This default layout includes multiple charts and a trade matrix that displays current prices, trade sizes, and order buttons.
Better Broker For Traders
For active traders seeking an alternative, Charles Schwab is a great choice.
It offers lower margin rates, zero commissions on all products,
higher interest on cash, and more user-friendly advanced trading tools.
Charles Schwab Promotion
Charles Schwab Referral
Updated on 6/17/2025.
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.
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