How do I avoid the pattern day trader rule?

Question

Accepted Answer

To avoid the PDT rule: keep your account balance above $25,000; use a cash account (though unsettled funds take 2 days to settle); trade with a broker outside the U.S. that does not apply the PDT rule (e.g., Interactive Brokers Pro with a non-U.S. entity); or limit yourself to 3 or fewer day trades per 5-day rolling period. Swing trading (holding overnight) is unaffected by the rule.