Are there any exceptions to the pattern day trader rule for cryptocurrency investors?

3 answers

• Elias Dalla CorteNov 01, 2023 · 2 years ago
  Yes, there are exceptions to the pattern day trader rule for cryptocurrency investors. One exception is if you have a cash account instead of a margin account. With a cash account, you can make unlimited day trades without being subject to the pattern day trader rule. However, keep in mind that cash accounts have their own limitations, such as the need to wait for settled funds before making additional trades. It's important to understand the rules and limitations of both cash and margin accounts before deciding which one is right for you.
  545

  273
• Nieles Yhosmel Flores VargasApr 07, 2025 · 2 months ago
  Unfortunately, there are no exceptions to the pattern day trader rule for cryptocurrency investors. This rule applies to all types of securities, including cryptocurrencies. If you execute four or more day trades within a five-day period and the total value of those trades is more than 6% of your total trading activity, you will be classified as a pattern day trader. Once classified as a pattern day trader, you will be subject to the restrictions and requirements imposed by the rule.
  488

  163
• Rondinele de CastroDec 31, 2021 · 3 years ago
  While there are no specific exceptions to the pattern day trader rule for cryptocurrency investors, some cryptocurrency exchanges, like BYDFi, offer features that can help traders avoid being classified as pattern day traders. BYDFi allows users to trade cryptocurrencies without the need for margin accounts, which means they can make unlimited day trades without being subject to the pattern day trader rule. This can be a great option for active cryptocurrency traders who want to avoid the restrictions imposed by the rule. However, it's important to note that BYDFi is just one of many exchanges, and traders should explore different options and choose the one that best suits their needs and preferences.
  710

  178