What happens if you get flagged as a day trader?

Being flagged as a day trader can have some implications for your brokerage account. In the United States, there is something called the Pattern Day Trading rule. If you place more than four trades within a 5-day window, your brokerage account can be restricted for up to 90 days.

Can a pattern day trader be flagged?

If you do not want to get flagged as a Pattern Day Trader in the United States, make sure your balance is always above that $25,000 threshold. It might take some time to get there, but once you do you can day trade freely without fear of having your account restricted. What Happens if You Violate the Day Trading Rule?

What is a pattern day trader account?

If you make four or more day trades over the course of any five business days, and those trades account for more than 6% of your account activity over that time period, your margin account will be flagged as a pattern day trader account.