Does Robinhood Allow Day Trading?

Does Robinhood Allow Day Trading?

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Robinhood allows customers to buy and trade stocks all the time, mostly without fees. However, day trading is often up for debate because of how many rules there are. 

Robinhood is known for abiding by countless laws and regulations, which leads many people to wonder if they’re allowed to day trade on the app or website.

Robinhood allows day trading if you have at least $25,000 in your portfolio, not including cryptocurrency. Robinhood Cash accounts can also day trade since they aren’t using margins.

There is a lot of confusion with day trading on Robinhood since most people think they have a cash account when in reality they don’t. If you have instant deposit on your Robinhood account (which is on by default) then you technically have a margin account meaning by law you can’t say trade unless you have a $25,000 balance. 

Even if you switch over to a Robinhood cash account you still can’t day trade options as Robinhood doesn’t allow options trading on their cash accounts (at the time of this writing). So basically Robinhood has made it where day trading options is impossible on their platform unless you have a $25,000 balance. 

In this post, I will show you how you can take advantage of Robinhood’s day trading policies, whether or not it’s the best app for you to day trade, and how you can turn this on or off in your Robinhood settings. 

I will also break down their warning system, so you don’t get locked out of same-day trading.

How Many Day Trades Can You Do on Robinhood?

You can do as many day trades on Robinhood as you want to, provided you are using their day trading mode. 

In this mode, you’ll need at least $25,000 in the portfolio at all times (excluding cryptocurrency). If you don’t want to try this mode, you can buy and sell stocks on the same day three times per five transaction days.

Here’s a detailed explanation of the process:

  • You can make up to three same-day trades per rolling five-day business period on your Robinhood account. Robinhood explains that you can technically day trade a few times every five days without being considered a pattern day trader. Once you go beyond this limit, pattern trading requires an upgrade (I will cover the details later).
  • If you switch to the day trading mode, you can make as many trades on the same day as you’d like to. Once you’ve activated the day trading option on Robinhood’s app or website, you can trade as many times as you’d like to without any limits. This means you’ll be free to maintain your portfolio as long as it’s over the $25K limit.
  • Cryptocurrencies don’t count toward the monetary requirement for your portfolio, so you’ll have to sell them or add more money to your account to meet the company’s demands. That being said, people can buy and sell crypto as much as they want without being considered a pattern day trader on Robinhood.
  • All brokerages must abide by the limit, not just Robinhood. There’s no escaping the day trading laws. While they might seem restrictive, every brokerage company follows the same rules. Once you have the money in your account to qualify for it, you’ll no longer have to deal with such regulations.

The main difference between Robinhood and most other brokers is that Robinhood automatically makes your account a margin account when you open it while most other brokerages do not. 

Since you can day trade on cash accounts then automatically being on a margin account with Robinhood and not being able to trade options with a cash account on Robinhood means they are severely restricting your day trading options. 

Even more than other similar brokerages. 

Robinhood makes day trading as plain and simple as possible. You don’t have to read the fine print or wonder if you’re breaking any laws. They’ll stop your account from making too many day trades and send a warning notification if you’re getting close to your five-day same-day trading limit. 

To see if you qualify for the day trading mode, read on.

Note: According to Investment U, anyone can day trade if the transaction is less than 6% of the value of their account. However, this number would often be too small to be worth anything, so it’s best to follow the steps to become a day trader on the app or website.

How Do I Turn on Day Trading in Robinhood?

To turn on day trading in Robinhood, head to the settings menu, ensure you have $25K in your portfolio, and activate day trading. 

Remember, you can day trade if you have a Cash account, but you’ll have to contact customer support to downgrade and you can’t use a cash account to trade options on Robinhood. 

Here’s how you do it:

  1. Click on the settings menu and head to the day trading selection screen. There will be a tab called ‘Investing.’ Scroll to the bottom and tap the day trading button and learn more about it. You can also turn on pattern day trading protection to receive the previously mentioned warnings.
  1. Check all of the requirements to ensure you’re qualified for day trading on the app or website. The day trading tutorial will take you through everything you need to know about it, including potential risks, when it’s good or bad, and how to stay in good standing with Robinhood while day trading.
  1. Activate it and do your best to keep your account over the limit so the company doesn’t have to revert your account back to a normal mode (no day trading beyond the aforementioned limits). After meeting the qualifications, your profile can day trade for 90 days until it’s up for review again.

Robinhood ensures you won’t accidentally break any laws while day trading on their platform. However, it’s up to you to make sure you have the money in your portfolio when the 90-day review comes around.

Is It Safe to Day Trade on Robinhood?

It’s safe to day trade on Robinhood because they follow government regulations and prevent you from bending the rules. Furthermore, they’re a protected service that offers several lines of security, including passwords, biometric settings, and more.

Warrior Trading admits the only downside of day trading with Robinhood is that they don’t have the best customer service. It can take a while to get a response, so it’s crucial to know everything about the company you’re buying or selling shares with before you make a transaction.

If you’re an experienced day trader and you know how to work the stock market, Robinhood is filled with a top-notch user-friendly interface. Beginners will enjoy the low-pressure trading portfolio, while experts will love the quick buy-and-sell screens.


Robinhood follows the rules and lets you day trade if you have enough money in your account. Keep in mind that you can’t drop below the previously mentioned limit, or they might switch you back to a traditional profile. 

Instant and Gold members can both access the day trading mode, and anyone can perform up to three same-day transactions per five business days without having a minimum amount in their account. 

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