Recently your individual Active Invest account was labeled as a Pattern Day Trader (PDT) account because a pattern day trader (PDT) is a trader who executes 4 or more day trades within a rolling five business days period.
A day trade is when you purchase and sell the same security on the same market day. A PDT account requires a minimum of $25,000 in Account equity (excluding cryptocurrency) as of the previous market day’s close in order to be able to continue to day trade. If another day trade is placed in the account while labeled as a PDT account AND under $25,000 in Account equity as of the previous market day’s close, then the account will be restricted to closing trades for 90 days.
What do you need to do today?
If you would like to have the PDT label removed from your account then please Contact Us.
Please note: If you have the PDT label on the account AND are under $25,000 in Account equity as of the previous market day’s close, then you may be blocked from selling a security that you purchased the same day.
What can you do when your account is labeled as a Pattern Day Trader?
To avoid using your one time PDT reset, you can deposit funds into your account to bring your equity above $25,000. PDT accounts with equity above $25,000 (excluding cryptocurrency) as of the previous market day’s close are able to continue day trading.
If you intend on keeping your account equity under $25,000 you can use a one time PDT reset to have the label removed from your account.
For more information, please review the following SoFi Learn article: Pattern Day Trading Rules
Please Note: The Pattern Day Trader label can only be removed once once for the life of your account. If you have requested to remove it, and then complete an additional 4 day trades in a 5 business day rolling period - the PDT label restrictions will stay on the account permanently.