There are no specific restrictions on the number of investment orders you can place through Plum. You’re free to place as many buy or sell orders as you like. However, it's important to be aware of a regulatory limitation related to day trading, a rule enforced by the Financial Industry Regulatory Authority (FINRA) and observed by our brokerage partner, Alpaca.
What Is Day Trading?
A day trade occurs when you buy and sell (or sell and buy) the same stock on the same trading day. If you do this frequently, you may be classified as a Pattern Day Trader (PDT). In simple terms, a Pattern Day Trader is someone who executes 4 or more day trades on the same stock within 5 consecutive trading days
This classification is based on rules established by FINRA and followed by Alpaca. If Alpaca identifies your account as engaging in Pattern Day Trading, restrictions may be placed on your ability to trade for up to 90 days, unless your account meets specific requirements (such as holding a minimum balance of $25,000).
These restrictions are designed to limit excessive, high-frequency trading in accounts that aren't properly capitalized for that level of risk.
What Should I Do?
We strongly advise avoiding day trading activity if your account is not intended for that purpose. While Plum will do its best to notify you if your trading behavior may trigger a restriction, it’s ultimately your responsibility to trade responsibly.
To avoid any inconvenience:
Do not buy and sell the same stock on the same day.
Allow at least one trading day to pass between buying and selling the same asset.