Is it true that I can execute unlimited day trades in a cash account as long as they are fully paid, according to FINRA regulations?

The Financial Industry Regulatory Authority (FINRA) rules state that a cash account does not allow for unlimited day trading. While you can certainly make day trades in a cash account, there are important limitations, especially regarding the settlement of funds. With a cash account, you can only use the settled cash balance to make trades, and trades take two business days to settle (T+2). If you buy and sell a security on the same day using unsettled funds, it could constitute a violation of the cash account’s restrictions against “freeriding,” which could result in an account freeze for 90 days. Therefore, while you can engage in some day trading within a cash account, it is not unlimited unless you manage to only use settled funds for each trade. For those interested in more frequent day trading, margin accounts might be more appropriate, but they come with their own set of rules and the requirement of maintaining a minimum equity of $25,000 to qualify as a “pattern day trader.”