How To Get Unlimited Day Trades On Robinhood

Can you get around the day trade rule on Robinhood, Yes, you can. This article focuses on how to get unlimited day trades in Robinhood.
unlimited day trades on robinhood

Want to get unlimited day trades on Robinhood? Then it means you must be an active Robinhood trader that wants to get the most out of the platform. Robinhood is one of the best commission-free trading platforms available, as seen by the numbers indicating its user base. TD Ameritrade, Fidelity, and Webull are some of Robinhood's competitors. Day trading is a crucial activity that all traders engage in.

You need to day trade under the Robinhood day trading rules and if you exceed the number of day trades you should have in a period of 5 business days, your account will be marked as pattern day trader.

As a trader, day trading is one important thing to do to get the most out of the stock market. You are limited to only 3 day trades in a period of 5 business days on Robinhood. Knowing how to get unlimited day trades on Robinhood can help you get the most out of the stock market and this is exactly what we are going to be seeing in this article today.

CHECK ALSO: How to Remove Pattern Day Trader Status On Robinhood

What is Considered a Day Trader on Robinhood?

A day trade is when you buy and sell the same stock or open and close the same options contract(s) inside a single trading day.

If you execute four or more day trades in five trading days, you'll be considered a pattern day trader, as long as the number of day trades equals more than 6% of your total trades in your margin brokerage account for the same five trading days.

CHECK ALSO: How to Exercise a Call Option on Robinhood

What Counts as a Day Trade?

Individuals that buy and sell stocks, coins, or EFTs on the same day are known as day traders. It is possible to do so within the foreign market's business hours. In a single day, their account may be used to make several trades of the same or other stocks.

In a five-day window, three trades are usually authorized. These five days can represent several working days in a market and may differ depending on the trader.

A day trade is defined as a trade that is bought and sold on the same day.

CHECK ALSO: How to Transfer Crypto from Robinhood to Crypto.com

Can You Day Trade on Robinhood?

Yes, you can use Robinhood to day trade. If you're a day trader and want to know if you can use Robinhood, your favorite trading app, for day trading, the answer is yes. Robinhood allows you to day trade for three days and then trade based on your portfolio for another day.

On Robinhood, there are several guidelines to follow if you want to day trade. The current worth of about $25,000 in your Robinhood account is included in these regulations.

If you can't keep up with these regulations or figure out how to compute a fair valuation, Robinhood can help.

In the side menu of your app, look for the day trade bar under the day trade column. Check your status in this section to see if you're eligible for day trading on Robinhood.

CHECK ALSO: How to Transfer Crypto from Robinhood to Coinbase

Is Robinhood Good for Day Trading?

Yes, Robinhood is great for day trading. Robinhood has a spectacular place in the top applications for trading by all types of investors, with over 22 million account holders.

Robinhood, on the other hand, is best suited for marginal traders, day traders, and astute investors, according to market analysts.

Although there are some limits for day trading on Robinhood, day traders are drawn to its user-friendly app and layout.

Not only skilled day traders, but even novice day traders, can benefit from Robinhood's day trading services.

It allows you to start day trading without incurring any additional costs. If you want to improve your day trading game, though, you should move to cash accounts.

With their simple applications and rules, Robinhood makes it easy for newcomers to adjust to the new world of day trading.

If you're still unsure whether Robinhood is suitable for day trading, you can start with the app's basic trading options. You can expand your traders whenever you want once you've gained confidence in the application and platform.

CHECK ALSO: How to Transfer Stocks from Robinhood to TD Ameritrade

How Many Day Trades Can You Make on Robinhood?

When you decide to start day trading or switch to Robinhood as your day trading platform, the obvious question of how many day trades you can do on Robinhood arises.

The short answer is that you can only make three trades in a five-day period on Robinhood. If you have a larger portfolio, though, the situation is different.

Only if you have 25,000 dollars in your portfolio or the equal worth of assets in your possession does Robinhood allow you to make the fourth trade on consecutive days.

This valuation takes into account both the cash worth and the stocks in your account.

CHECK ALSO: How to Transfer Buying Power from Robinhood to Bank

How to Get Unlimited Day Trades on Robinhood?

A way of getting unlimited day trades on Robinhood is by using an account on which the day trader rules do not apply. These accounts let you get an extra day of day trading via Robinhood as a day trader. And when Robinhood limits day traders to three deals in five days, they figure out how to get limitless day traders on the platform.

The type of account that day traders use for day trading must be taken into consideration. The restrictions apply only to the two types of Robinhood accounts: instant and gold, often known as marginal accounts.

You can bypass these restrictions if you have a cash account and utilize it for day trading. To use your cash account for day trading, you only need $25,000 in assets, including cash and stocks. The market and stocks, on the other hand, will take at least two days to settle.

You can day trade from your cash account if you want to make more than three trades in five days. It is, however, preferable to utilize marginal accounts and set aside assets.

CHECK ALSO: How to Add Money to Robinhood to Without Bank Account

Final Thoughts on How to Get Unlimited Day Trades on Robinhood

A day trade is when you buy and sell the same stock or open and close the same options contract(s) inside a single trading day.

If you execute four or more day trades in five trading days, you'll be considered a pattern day trader, as long as the number of day trades equals more than 6% of your total trades in your margin brokerage account for the same five trading days.

Traders can get extra day trades on Robinhood by using an account on which the day trader rules do not apply on. You can also bypass day trading limit if you have a cash account of at least 25K.

To stay away from pattern day trader status, make sure you check the rules and regulations of the Robinhood app before you dive into day trade.

References:
https://robinhood.com/us/en/support/articles/pattern-day-trading/
https://wealthquint.com/how-many-day-trades-can-you-make-on-robinhood-27042/

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