Robinhood and Webull surge as US eases day trading restrictions
Robinhood and Webull shares are up about 10% and 12% respectively in intraday trading, following the SEC's approval of a major overhaul of day trading regulations. The regulator greenlit a FINRA proposal to eliminate the rule that restricted accounts under $25,000 to just three trades over a five-business-day period, removing a significant hurdle for retail investors.
This shift now allows retail traders to execute an unlimited number of intraday transactions, provided they comply with new margin requirements adjusted in real time. The mandate to maintain a minimum balance of $25,000 is being scrapped, a measure previously criticized for its perceived discrimination against less affluent investors.
For brokerage platforms, this development represents a significant growth lever. The anticipated increase in transaction volume per user is expected to bolster revenues and strengthen customer engagement, as active traders are more likely to use these applications frequently. The new regulatory framework will take effect following the final publication of the rules by FINRA.
Robinhood Markets, Inc. specializes in the operation of mobile investment and financial services platforms for institutional investors and individuals. The group operates an online investment platform that allows clients to invest commission-free in stocks, Exchange Traded Funds (ETF), underlying assets, American Depository Receipts (ADRs), and to purchase shares in an initial public offering (IPO). At the same time, through its platform, the group offers automated transfer services of financial securities from a third-party trading account to the Robinhood trading venue. In addition, Robinhood Markets, Inc. operates a cryptocurrency trading platform (Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic and Litecoin) taking charge of real-time market data for 8 crypto-currencies. In addition, the group has a premium subscription platform allowing subscribers to access additional features (instant access to deposits, in-depth research reports on approximately 1,000 stocks via Morningstar, Nasdaq stock data, margin investing, securities lending, etc.), and a cash management platform. Net sales break down by type of income as follows:
- revenue from transactions (58.8%): primarily transactions in trading stock options (42.7% of revenues), cryptocurrencies (34.3%) and equities (11.5%);
- net interest income (37.6%): including interest income on securities lending operations, margin lending, margin loans, and cash and securities under separate management;
- other (7.4%).
At the end of 2025, Robinhood Markets, Inc. had USD 322.1 billion of assets under custody on behalf of 27 million monthly active users.
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