.jpg)
Introduction:
If you have made more than 4 trades in a day on Robinhood, and you do not qualify as an exempt investor, your account may be designated as a pattern day trader by the SEC. But don’t worry—it’s not too difficult to remove this status from your account. Here’s how to remove pattern day trader status from your Robinhood account.
Do you have a problem with your broker?
If you're a Robinhood user, you may have noticed that some of your favorite stocks are no longer available to trade. This is because you've been flagged as a pattern day trader. You can remove this status from your account by withdrawing all funds from Robinhood. You can then wait two business days before depositing any new funds.
Things You Will Need To Get Started:
1. A laptop or desktop computer with an internet connection.
2. A trading account with Robinhood.
3. Your pattern day trader status from Robinhood.
4. A reason why you want to remove your pattern day trader status.
5. An understanding of the involved in trading stocks.
6. A plan for how you will trade without pattern day trader status.
The Process
1. Log into your account on the Robinhood website.
2. Click on the Account tab and then select Settings from the drop-down menu.
3. Scroll down to the Trading Permissions section and click on the Edit button.
4. Find the Pattern Day Trader status and click on the Remove button next to it.
5. A confirmation message will appear – click on the Remove PDT Status button to confirm your choice. 6. You will now see a message that says You are no longer a pattern day trader – this means that your status has been successfully removed!
First, Close Out All Your Positions
Logging into your account is the first step. After you have logged in, you will be able to see your account information. On the left side of the screen, there will be a tab that says Remove PDT.
By clicking on this, you will be able to see the requirements for removing the PDT status. You can remove it by having an open position with a value greater than $25,000 and/or by meeting one of the following criteria
Next, log in to Your Account
If you're like me, you probably have a love-hate relationship with Robinhood. On one hand, it's a great platform that allows for free stock trading. On the other hand, there are some major drawbacks - like the fact that they label you as a pattern day trader if you make more than three-day trades in a week. This can be extremely frustrating, especially if you're just trying to trade for fun or to make a quick profit. Logging into your account is the first step. After you have logged in, you will be taken to your account overview page.
On the left-hand side of the screen, there will be a menu. Select Settings from this menu. In the settings menu, select Trading Preferences. Here you will see a section labeled Pattern Day Trade Protection. You will want to click the radio button next to Remove PDT Protection. A message will pop up asking if you are sure you want to do this. Select Yes, I’m Sure. And that is it! You have now removed your PDT status on Robinhood!
Then, Call Support at (800) 901-6008
If you're a Robinhood user and you've been flagged as a pattern day trader, don't worry. You can easily remove the flag by calling support and asking them to do so. Here's how
1) Check your account history for this message: Pattern Day Trader Alert: You may be considered a pattern day trader in accordance with IRS regulations
2) Call the Support Line at 800-901-6008
3) Explain that you'd like to have your status removed from the Robinhood system. The representative will ask for your social security number, which they'll verify before removing it.
Finally, Follow Up and Wait for the Update
You've followed all the steps and submitted everything that was asked of you. Now, it's time to play the waiting game. The next step is for Robinhood to review your application and make a decision. In the meantime, don't trade on Robinhood or any other platform.
Once you receive word from Robinhood, you can start trading again. If they decline your request, follow up with them and ask why they declined. If they say pattern day trader, then there are two options: one is to simply wait out the 60-day period before reapplying; another option is to try changing the frequency of trades (for example, from daily to weekly).
Conclusion
So there you have it! A step-by-step guide on how to remove the Robinhood pattern day trader status. This process can be a little bit daunting, but if you follow these steps and stay organized, you should be able to get through it without any major issues. Just remember to stay calm and be patient—the process may take some time, but it'll be worth it in the end. Now that you know how to remove your Robinhood pattern day trader status, I'm sure you're eager to jump back into trading again!
Whether you're an experienced stock market pro or a brand new investor with your first credit card account, it's never too late to start learning more about investing online. My hope is that sharing my experience with being labeled as a pattern day trader with help other readers avoid getting on Finra's watch list in the future. Remember: don't let anything discourage you from your investing goals!