Cash Sweep and Pattern Day Trading

While your account is flagged as PDT, the first $25,000 in your account is unable to participate in the cash sweep feature. Since your account requires a minimum value of $25,000, this amount cannot be swept. This measure follows standard industry practices, as permitting a PDT customer to fully use the cash sweep could lead to continuous day trade calls in your account. 

For example, if your account has $100,000 in cash and is marked as a PDT account, only $75,000 will be available for the cash sweep program. This is because the first $25,000 of equity needs to be held so that you can hold the pattern day trading designation. For further information on FINRA guidelines for day trading, click here. 

Keep in Mind:

If you are marked as PDT while enrolled in the cash sweep program, you will be automatically unenrolled from the program and the cash and accrued interest in the program will be paid into your account.