HOOD vs SOFI vs BULL: Which Brokerage Has The Most Upside As PDT Rules End?

• The long-standing PDT rules end on Thursday, removing the $25,000 minimum equity requirement that restricted many retail day traders.
• Under the new framework, brokerages will monitor intraday risk and margin exposure rather than counting trades or assigning PDT status.
• Robinhood (HOOD) has begun counting down to the rule change, saying it will remove all PDT flags and allow customers to trade without day-trading limits.

A trading rule that kept countless retail investors from day trading freely is set to expire on Thursday, potentially creating a major new growth catalyst for brokerage stocks. Among Robinhood (HOOD), SoFi Technologies (SOFI) and Webull (BULL), one company appears far better positioned than the others to capitalize.

On Tuesday, HOOD fell 3%, SOFI lost 5%, and BULL declined 6%. 

PDT Rules End: What Changes For Traders?

The end of the Pattern Day Trader (PDT) rules could increase trading activity across retail brokerage platforms, potentially benefiting firms that serve active traders and smaller accounts that were previously constrained by the $25,000 threshold.

The PDT rules previously required margin-account holders who executed four or more day trades within five business days to maintain at least $25,000 in account equity. The rule effectively limited active trading for many smaller retail investors. Under the new system, brokerages will no longer count trades or designate customers as pattern day traders. Instead, firms will monitor risk through intraday margin requirements that focus on the size and risk of a customer's open positions.

Investors who do not maintain sufficient equity relative to their positions may face an intraday margin deficit and could be required to add funds or reduce exposure. Repeated failures to satisfy those deficits may still result in restrictions lasting up to 90 days.

The changes do not eliminate margin requirements altogether. Investors generally still need at least $2,000 in equity to trade on margin, while firms must ensure customers maintain minimum maintenance-margin requirements throughout the trading day. The rules also apply to products such as zero-day-to-expiration options. Brokerages have up to 18 months to fully transition to the new system.

Wall Street Sees Webull As The Biggest Winner

Based on Koyfin consensus estimates, Webull offers the largest potential upside among the three brokerage stocks. BULL trades has a consensus target of $12, implying a 93% upside from current levels, while SOFI’s consensus target of $21 implies an 18% upside. Meanwhile, HOOD carries a consensus target of $98.77, implying a 12% upside.

Analyst sentiment also remains strongest for Webull. The stock carries an average analyst rating of 'Strong Buy', with all three covering analysts maintaining either 'Strong Buy' or 'Buy' ratings. Robinhood has an average analyst rating of 4.04, with 27 analysts covering the stock, including four 'Strong Buy' ratings, 15 'Buy' ratings, five 'Hold' ratings and three 'Sell' ratings.

On the other hand, SoFi has an average analyst rating of 3.29 from 24 analysts, including three 'Strong Buy' ratings, five 'Buy' ratings, 12 'Hold' ratings, two 'Sell' ratings and two 'Strong Sell' ratings.

Why Webull Stands Out

Among the three companies, Webull appears to have the most direct exposure to the catalyst. During the company's recent first-quarter earnings call, President Anthony Denier said Webull's average account size sits just below $5,000, meaning a large portion of its customers were directly impacted by PDT restrictions.

Denier expects the transaction activity to increase by at least 20% over time after the removal of PDT restrictions. He also said that many active traders currently maintain multiple brokerage accounts to work around PDT limitations. "The removal of PDT presents a very unique opportunity for account consolidation across the industry," Denier said.

The company has already outlined plans for educational campaigns, customer-acquisition efforts and potential incentives to attract traders from competing platforms. Denier also called the removal of PDT restrictions a "very big event" for the company and said Webull expects to be ready on day one.

How HOOD And SOFI Are Responding To PDT Changes

Robinhood is also leaning heavily into the upcoming change. The company recently began counting down to the rule change on X, posting that June 4 would mark the elimination of the PDT rule on its own platform as well. 

Robinhood said on X it plans to wipe all existing PDT flags from customer accounts and told users they would soon be able to trade on the platform "without worrying about day trading limits again." The brokerage is also encouraging account transfers ahead of the change by offering an uncapped 1% transfer bonus, or 2% for Robinhood Gold subscribers.

SoFi's latest move has focused on expanding its financial services ecosystem and making its platform more attractive to investors seeking an all-in-one financial hub. On Tuesday, the company launched SoFi Coach, an AI financial assistant that combines AI with insights. The platform enables members to track spending, manage debt, evaluate major financial decisions and receive personalized financial guidance based on their individual goals and financial situation. 

How Do Retail Traders Feel About SOFI, BULL, HOOD?

On Stocktwits, retail sentiment for HOOD and SOFI was 'extremely bullish' amid 'high' message volume, while BULL drew 'bearish' sentiment amid 'low' message volume. 

One user said, “$HOOD new pdt and prediction market revenue will continue to rise. Looking for an entry around august”

Another user said, “$QQQ $SPY i'm ready to slap options on these 2 on Thursday .. new PDT rules will be in effect ,, $HOOD $BULL let's roll this out…”

Over the past year, HOOD and SOFI have each gained about 30%, while BULL has fallen 46%. 

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