BULL, HOOD Stocks Pop After-Hours As SEC Clears Major Barrier That Locked Retail Investors Out Of Active Day Trading

• The SEC approved sweeping changes removing the long-standing $25,000 pattern day-trader equity requirement.
• Under the old framework, margin-account holders needed $25,000 in equity to make frequent same-day trades within a five-business-day window.
• Bernstein maintained an 'Outperform' rating on HOOD, citing a recovery in crypto trading and growth in prediction markets revenue.

Shares of Webull Corp. (BULL) and Robinhood Markets, Inc. (HOOD) jumped in extended trading on Tuesday after the U.S. Securities and Exchange Commission (SEC) approved sweeping changes to day-trading rules that had limited smaller investors’ ability to trade on margin.

BULL stock jumped 7% in extended trading, while HOOD gained 5% after both stocks had already climbed over 10% in the regular session.

SEC Scraps $25K Day-Trading Rule

Under the old rules, margin account holders who made four or more same-day trades within five business days were required to keep at least $25,000 in their accounts to continue day trading, a threshold that effectively locked out smaller investors from active trading.

The new framework replaces that trade-count limit with intraday margin standards focused on the actual risk in a customer's positions at any given moment during the session. Rather than restricting investors based on the number of trades they make, brokerages will now monitor whether those trades push an account beyond permitted risk levels. Customers may still be required to add funds or reduce positions if their exposure grows too large.

Retail Trading Gets Another Boost From BULL

Under Webull’s prior rules, margin-account users with balances below $25,000 were limited to three day trades within a five-business-day period before triggering the pattern day-trader status. 

Cash accounts were allowed unlimited same-day trades using settled funds, but selling securities purchased with proceeds from a recent sale before those proceeds were officially settled, known as a “good faith violation,” could lead to temporary restrictions on further trading.

The regulatory progress comes as brokerage platforms continue rolling out measures to improve access for retail investors. On Monday, Webull’s Canadian unit introduced zero-commission trading across its platform for U.S. and Canadian equities. The benefit applies across account types, including margin accounts, cash accounts, Tax-Free Savings Accounts and Registered Retirement Savings Plans, and includes access to advanced charting tools, real-time market data and multi-leg options strategies.

“By eliminating commissions, Webull Canada is removing a layer of friction from trading, and delivering on our continued commitment to making capital markets more accessible to Canadian investors,” Webull Canada CEO Michael Constantino said in a statement. 

Robinhood Improves Retail Onboarding 

Robinhood has also been expanding its financial services ecosystem by improving onboarding. On Tuesday, the company selected fintech infrastructure provider Pinwheel as its direct-deposit switching partner for Robinhood Banking, integrating Pinwheel’s PreMatch tech to streamline payroll-linked deposit activation during account opening.

Pinwheel said its PreMatch tech enables near-instant payroll identification and delivers double the conversion rate compared with legacy switching workflows requiring manual payroll-provider searches.

Bernstein Flags ‘Asymmetric Upside’ In HOOD

Separately, Bernstein maintained an Outperform rating on HOOD with a $130 price target, implying a 64% upside from current levels. The firm said the stock offers “asymmetric upside potential,” citing expectations for a recovery in crypto-trading activity and "breakout” growth in prediction-markets revenue. 

Bernstein added that a weaker first-quarter report appears already reflected in the share price and said investors may begin focusing on improving trading volumes from the second quarter onward.

How Do Retail Traders Feel About BULL, HOOD?

On Stocktwits, retail sentiment toward HOOD and BULL was ‘extremely bullish’, with message volume marked as ‘high’ for HOOD and ‘extremely high’ for BULL.

One user said, “The question is, what day will this take effect? Traders are ready to deposit 2K And trade all they want. Nobody realizes how big this is until it gets priced in. This is massive for Robinhood.”

Another user expects BULL stock to jump 5x from current levels following the cancellation of the $25,000 minimum day-trading requirement.

Over the past year, HOOD shares have jumped 79%, while BULL stock has plunged 91%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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