Wall Street Scrapped a 25-Year-Old Rule. Does It Make Robinhood Stock a Buy Right Now?

Regulators have eliminated the pattern day trader (PDT) rule that previously restricted retail accounts with less than $25,000 from making frequent day trades. The change, effective June 4, 2026, replaces the $25,000 equity requirement with a $2,000 minimum and risk-based margin system. This development particularly benefits Robinhood Markets, whose user base (average account balance ~$4,000) was heavily constrained by the old rule. The removal could unlock increased trading volumes and boost Robinhood's transaction-based revenues through payment for order flow and margin interest, though the stock is already priced at 46x forward earnings.