Webull shares rose 13% [3] following a record second quarter driven by the removal of the pattern-day-trading rule.
The policy change significantly expanded the addressable market for retail trading by eliminating the $25,000 equity minimum previously required for day traders. This shift allows a broader range of small-scale investors to execute multiple trades daily without facing restrictive account minimums.
Anthony Denier, CEO of Webull US, said the removal of the rule changed the outlook for the company's business. Speaking on CNBC’s ‘Squawk on the Street,’ Denier said the regulatory shift was a defining event for the company's record performance this quarter.
Data from the second quarter shows a sharp increase in activity across the platform. Equity notional volumes grew 73% year-over-year to $279 billion [1]. This surge in equity trading was accompanied by a similar rise in derivatives activity, as options contracts volume climbed 68% year-over-year to 213 million contracts [2].
Webull has positioned itself to capture this new wave of high-frequency retail activity. The company's growth comes as other platforms, such as Robinhood, have remained steady during the same period [3]. The removal of the equity threshold has lowered the barrier to entry for active traders who previously lacked the capital to meet federal requirements.
Denier said the increased volume is a direct result of the rule change, which has fundamentally altered how retail investors interact with the U.S. markets. The record quarter reflects a shift in user behavior as traders transition from long-term holding strategies to more active, short-term trading patterns.
“Webull shares rose 13% following a record second quarter.”
The elimination of the pattern-day-trading rule represents a significant deregulation of retail brokerage. By removing the $25,000 capital requirement, regulators have effectively democratized high-frequency trading for the average consumer. For firms like Webull, this creates a scalable revenue stream based on increased transaction volume rather than just assets under management, though it may also increase the systemic risk associated with retail volatility.
