Pattern Day Trading at Webull
Whether you are new or experienced, it is important to understand what the PDT rule is and how it can
affect your trading. The PDT rule was created by the Financial Industry Regulatory
Authority (FINRA) and requires all brokers to enforce it to stay in compliance with
regulations. The PDT rule started in 2001 and was meant to protect investors, especially new
ones, from trading too often unless they have at least $25,000 in their trading account, which can
be made up of cash and/or securities.
Whether this rule truly protects investors is up for debate, but the rule says:
The rules adopt the term "pattern day trader," which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period.
In simple terms, you can make three day trades in a 5-business-day period. If you place a 4th trade during that same period, your account can be restricted for 90 days. It is important to note again that this rule is enforced by all brokers regulated by FINRA.
How To Avoid PDT Rule at Webull?
Now that you know what the PDT rule is, how can you avoid it?
1) The most direct way is to have more than $25,000 (cash and/or securities) in your
account. However, that is not possible for everyone, so here are a few other ways
to avoid the PDT rule, and how Webull can help:
2) Limit day trades. Remember, if you buy a stock today and sell it tomorrow, that is
NOT a day trade. You should save day trades for situations where a trade moves against you
and you want to exit quickly.
3) Use a cash account instead of a margin account. The downside is that
stocks and securities take one business day to settle after a sale, so you cannot reuse
those funds right away. Margin allows instant reuse of funds, but that also makes the PDT rule apply.
4) Have multiple brokers! This can help for many reasons. Having accounts at two brokers
would allow up to six day trades in five days instead of just three. This is because the PDT rule is tracked per
broker, not per person.
One helpful feature at Webull is that they offer a one-time PDT reset that can be used once every 90 days.
This gives you another safety net if you trigger the rule by mistake.
Best Broker For Trading
Webull Day Trading Pros
So, what is Webull and should you use it for day trading?
Webull launched in 2017 and joined the move toward commission-free trading that is now standard
across most brokers. Before 2017, many brokers charged
$4.99 to $9.99 per trade, but now almost all offer $0 trades. This helped bring many new traders
into the market.
So what are some of the pros and cons of day trading at Webull?
- No commissions on stock, ETF, or option trades!
- No account maintenance fees.
- No platform fees.
- Charting tools are very strong.
- A powerful mobile app and an equally strong desktop platform.
- Margin rates are lower than at many other
brokers.
- Webull offers paper trading, so you can practice before using real money.
- No account minimums. You can start with a small amount of money.
- Works on multiple devices and platforms.
- Longer extended trading hours than many brokers; from 4 AM to 8 PM Eastern Time.
- Free real-time quotes with a free account, plus watchlists and news.
- Webull includes a community where you can talk with other traders and predict whether a stock may go up or down to earn points.
- Webull is a member of SIPC, which protects customer securities up to $500,000 (including $250,000 for cash).
Webull offers free stocks when certain actions are completed, such as:
- Open an account and get one or two free stocks (depending on the promotion) plus a 3-month Level 2 subscription
- Fund your account; larger deposits can earn more free stocks.
- Refer friends who deposit at least $100
- Transfer money from another broker
- Webull often adds new promotions, so it helps to check emails or log into the app often.
- Free stocks are chosen at random and can be worth from $3 to $1,600.
Best Broker For Trading
Webull Day Trading Cons
That was a long list of pros, but there are also some cons.
- No trading in stocks under $1 or companies with market caps below $10 million.
- No mutual fund trading. This is listed separately, although most active traders do not use mutual funds for day trading.
- Because mutual funds are not offered, Webull supports about 5,000 stocks and ETFs out of roughly 16,000 total U.S. listings. Still more than most people can track.
- While the app is powerful, it can feel busy, especially outside the main screens. Support replies also appear there, so it takes time to learn everything. There are helpful videos available, though.
Webull Day Trading Recap
Those are the main pros and cons of day trading on Webull. Overall, Webull is highly recommended because it keeps adding updates and new features. In the future, support may include real-time chat, and OTC trading may be added in some form.
Updated on 1/15/2026.
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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