Investing.com -- Webull shares jumped more than 9% on Wednesday after the U.S. Securities and Exchange Commission approved a major overhaul of the pattern day-trading rule, ending the long-standing requirement that investors hold at least $25,000 in a margin account to execute frequent trades.

Shares of rival retail broker Robinhood Markets also advanced, rising 5.7%.

The approval follows a proposal from the Financial Industry Regulatory Authority to scrap restrictions that barred investors with less than $25,000 in assets from making more than four day trades within five business days.

Under the new framework, all customers will instead be required to maintain sufficient equity to cover the real-time risk of their positions, regardless of account size.

SEC’s Assistant Secretary Sherry Haywood said public feedback “overwhelmingly supported” the shift, which removes both the minimum-equity threshold and the formal definition of a pattern day trader.

Retail brokers were quick to welcome the move. Webull’s Group President and U.S. CEO, Anthony Denier, told Investing.com that “PDT reform is long overdue,” adding that “today’s retail investors are more informed, more engaged, and equipped with better tools than ever before.”

He said updating the rule “is about aligning regulation with how markets actually function, and ensuring access isn’t arbitrarily limited,” noting that Webull has been preparing for the transition as part of its broader focus on access, transparency, and investor controls.

“We’ve been preparing for this shift because we believe the future of retail investing is rooted in access, transparency, and control,” Denier added. “As the landscape evolves, our focus remains on giving investors the tools and insights they need to trade responsibly.”