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Best Brokers For Short Selling 2025

Written By

Michael MacKenzie

Written By

Michael MacKenzie

Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.

» Michael MacKenzie Profile Page

Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. As a former management consultant, he's worked on major operational transformation programmes at top European banks. A trusted industry name, James's work at DayTrading.com has been cited in publications like Business Insider.

» James Barra Profile Page

Updated

Oct 21, 2025

Short sellers aim to profit from market downturns. We’ve found the best brokers for short selling by assessing key factors: markets available to short, fees on short positions, platform quality, account minimums, and our trust in the broker.

Comparing Short Selling Brokers

Based on our exhaustive tests, the best brokers for short selling are trusted and offer a range of markets, low fees, excellent platforms, and accessible minimum deposits.

We unpack these comparison factors and our methodology below.

Trust

When we put together this list, our top priority was choosing trustworthy short selling brokers.

Only those who meet our stringent trust standards, including having up-to-date regulatory credentials and earning a solid reputation with our in-house experts, make the cut.

Markets

Short selling brokers provide opportunities to profit when an asset’s price decreases, either through products like contracts for difference (CFDs) or by directly loaning the asset, such as stocks, to traders to rebuy later at a lower price.

We look for short selling brokers that offer a diverse range of markets, ensuring traders can capitalize on shorting opportunities across company shares, stock indices, currencies, or crypto tokens.

Fees

Short selling can involve certain fees including transaction costs, interest charged on borrowed funds, as well as standard interest rates on margin accounts.

We only select short selling brokers that offer highly competitive rates, but more than this we seek out those that offer good value for money by reviewing the total costs and how the services on offer weigh up.

Brokers frequently adjust their rates, so we also periodically review pricing structures to make sure short sellers have the latest information.

Platforms

Traders need a fast, smooth and responsive platform or app to get the best results while short selling.

However, what separates the best short selling brokers for us is their valuable insights into securities that can be shorted, including the quantity available and alerts to significant changes in short interest rates and costs, to support decision-making.

Account Minimums

Brokerages with low minimum deposits are the most accessible and allow traders of all stripes to test out brokers’ services and start shorting securities before risking substantial capital.

Recognizing the potential of margin trading for short sellers with limited funds, we favor brokers offering minimum deposits of $500 or less.

Methodology

Compiling our list of the top short selling brokers involved a 5-step, hands-on approach:

1. Regulatory credentials – We went beyond the details advertised, verifying each broker’s license on the relevant agency’s website to ensure it was valid.
2. Trading fees – We compared fees comprehensively – examining commissions, interest on borrowing, and any additional costs – to ensure brokers offer a cost-effective environment for short sellers.
3. Platform quality – Putting platforms and tools to the test, we actively placed paper trades, assessing their suitability specifically for short selling.
4. Trading markets – We investigated the markets and instruments available for short selling to ensure users have ample trading opportunities.
5. Account opening – Recognizing the importance of accessibility, we verified that the minimum deposit required to open an account was reasonable, helping new short sellers get started.

FAQ

What Is Short Selling?

Short selling involves borrowing an asset to sell it in a bet that its price will drop, allowing you to buy it back at a later date and pocket the difference in price (minus any fees).

Alternatively, short sellers can speculate on falling prices using derivatives like contracts for difference (CFDs), whereby you don’t take ownership of the underlying asset.

Can Anyone Short Sell?

Thanks to the wide availability of online brokers, it is easier than ever to short stocks and other securities today. If you are able to sign up with the brokers on our list, then you can start short selling.

What Are The Benefits Of Short Selling?

Shorting can be a lucrative trading strategy when it comes off. Asset prices do not normally rise indefinitely, and short selling gives traders an opportunity to anticipate price drops and make money from the inevitable.

What Are The Risks Of Short Selling?

If you had bought one Bitcoin in 2019 for $5000, the maximum amount you would have risked losing was $5000 if the price went to zero. But in fact, the price rose to a peak above $60,000, so if you had shorted Bitcoin you would have potentially lost more than $55,000 (excluding any fees).

This illustrates how a short trade can be riskier than a straightforward buy, as there is no limit to how high an asset’s price can rise.