Does eToro Allow Day Trading?

Written by Mike Druttman

Reviewed by Nadav Zelver

Yes, eToro supports day trading. You can buy and sell positions within the same day across multiple markets. The platform comes equipped with the essentials: live charts, built-in risk controls, and a mobile app so you’re not chained to your desk.

Now, if you're trading in the U.S., things get a bit more regulated. eToro complies with the SEC and FINRA’s Pattern Day Trader (PDT) rule. So, if you execute four or more intraday trades within five business days using a margin account and those trades account for more than 6% of your total activity, you’ll need to keep a minimum balance of $25,000.  If you're outside the U.S., it's a different story. International eToro accounts aren’t bound by PDT restrictions, so you’ve got more room to maneuver.

Pattern Day Trader (PDT) Rule for U.S. Residents

If you're trading from a U.S.-based account, eToro follows the SEC and FINRA’s Pattern Day Trader (PDT) rule.

"According to FINRA rules, you’re considered a pattern day trader if you execute four or more "day trades" within five business days—provided that the number of day trades represents more than 6 percent of your total trades in the margin account for that same five business day period."

Here’s how it works:

• A day trade means buying and selling (or selling and buying) the same asset within a single trading day.
• If you place 4 or more day trades within 5 business days, and they make up more than 6% of your total trades during that time, you’ll get tagged as a Pattern Day Trader.
• Once flagged, your account needs to hold $25,000 or more in equity every trading day if you want to keep day trading.
• Fall below that $25K line? Your account gets restricted. You’ll only be able to close positions until your equity is back above the limit.

It’s a strict rule and if you’re planning to day trade regularly in the U.S., it’s one you need to know.

International Users (Non-U.S.)

Trading from outside the U.S.? Good news: Pattern Day Trading (PDT) rules don’t follow you.

That means no $25K minimum, no trade caps. You’re free to day trade without running into those restrictions U.S. traders deal with. Just keep in mind that your country might have its own rules or licensing requirements.

eToro offers day trading access to users worldwide, crypto included. Even on weekends, depending on what’s live in your market.

Now I won’t sugarcoat it: short-term trading comes with baggage. You’ve got fees eating into your margins, slippage messing with your entries, and price swings that can flip the script in seconds. So factor all that in before locking in your strategy.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

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eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.