A day trade occurs when you buy and sell a security on the same trading day. Fidelity defines a pattern day trader as any customer who executes four or more “day trades” within five business days.
Once you reach this limit, a Pattern Day Trader status is assigned to your Fidelity account.
Fidelity’s PDT policy is enforced to prevent you from incurring excessive and unnecessary losses by trading too frequently.
In the past, you could get away with PDT by waiting for 60 days. This will reset your status and Fidelity will allow you to trade again without restrictions.
Unfortunately, with the recent FINRA changes on how PDT rules work, customers will have their account classified as PDT permanently and day trading is restricted until they have a minimum account value of $25,000.
As such, Fidelity will no longer remove your Pattern Day Trader (PDT) status, and you won’t be able to day trade again until the requirement above is fulfilled.
- Solved: Avoid Fidelity Account from Good Faith Violations
- Fidelity Error (013014) Buy Order Exceeds Settled Cash
- Fidelity Wash Sale: What Is It? And How To Avoid It
- Fidelity (009972) Restricted Account Error
1 post – 1 participant