A hand-held compact and portable EDM tool can be carried by an operator to a remote site and used for fast drilling holes and removing taps, drills etc. in just minutes. High pressure water flushes away debris, cools and protects the workpiece. Sophisticated electronic circuitry continually monitors the gap between the electrode and the workpiece, controls speed and direction of movement of the electrode and breaks shortings which may occur in the gap. The EDM tool can be operated without involvement of the operator. A magnetic holder removably secures a frame to the workpiece.