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Best Brokers For Short Selling

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Written By
Michael MacKenzie
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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
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Edited By
James Barra
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Edited By
James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
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Updated
Dec 8, 2023

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.

Best Brokers For Short Selling 2024

These are the 10 best platforms based on our findings, offering either direct short selling or short selling through products like CFDs:

Click a broker for details
  1. 1
    DNA Markets
    Ratings
    3 / 5
    4 / 5
    4 / 5
    3.9 / 5
    3.5 / 5
    3.6 / 5
    1.8 / 5
    1.6 / 5
    4.8 / 5
    4.4 / 5
    $100
    0.01 Lots
    1:500
    ASIC
    CFDs, Forex, Indices, Commodities, Stocks, Crypto
    MT4, MT5
    Credit Card, Debit Card, Wire Transfer, BPAY, Skrill, Neteller, Bitcoin Payments, Bitwallet, AstroPay, Mastercard
    USD, EUR, GBP, CAD, AUD, NZD, SGD
    Go To DNA Markets
  2. 2
    IG
    Forex trading involves risk. Losses can exceed deposits.
    Ratings
    4.9 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.8 / 5
    4.5 / 5
    4.9 / 5
    5 / 5
    4.6 / 5
    4 / 5
    $0
    0.01 Lots
    1:30 (Retail), 1:250 (Pro)
    FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
    Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
    PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card
    USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD
    Go To IG
  3. 3
    IQCent
    20% to 200% Deposit Bonus
    Ratings
    2.5 / 5
    3.3 / 5
    2.4 / 5
    4.3 / 5
    3.8 / 5
    2.5 / 5
    3 / 5
    2 / 5
    4.3 / 5
    4.1 / 5
    $250
    $0.01
    1:500
    IFMRRC
    Binary Options, CFDs, Forex, Indices, Commodities, Crypto
    Online Platform, TradingView
    Credit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, Mastercard
    USD, EUR
    Go To IQCent
  4. 4
    RedMars
    Ratings
    3.3 / 5
    3.5 / 5
    3.8 / 5
    3.5 / 5
    3.8 / 5
    4 / 5
    2.8 / 5
    3 / 5
    4.7 / 5
    4.6 / 5
    €250
    0.01 Lots
    1:30 (Retail), 1:500 (Pro)
    CySEC
    CFDs, Forex, Stocks, Indices, Commodities, Cryptos
    MT5
    Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, Visa
    USD, EUR
    Go To RedMars
  5. 5
    Interactive Brokers
    Ratings
    4.5 / 5
    3.5 / 5
    4.5 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5
    $0
    $100
    1:50
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
    Go To Interactive Brokers
  6. 6
    Videforex
    20% to 200% Deposit Bonus
    $250
    $0.01
    1:500
    Binary Options, CFDs, Forex, Indices, Commodities, Crypto
    TradingView
    Skrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum Payments
    USD, EUR, GBP, AUD, RUB
    Go To Videforex
  7. 7
    xChief
    $100 No Deposit Bonus
    $10
    0.01 Lots
    1:1000
    VFSC
    CFDs, Forex, Metals, Commodities, Stocks, Indices
    MT4, MT5
    Wire Transfer, Bitcoin Payments, Credit Card, UnionPay, Skrill, Neteller, WebMoney, Perfect Money, Debit Card, Ethereum Payments, FasaPay, Volet
    USD, EUR, GBP, JPY, CHF
    Go To xChief
  8. 8
    Axofa
    10% Deposit Bonus
    $1
    0.01 Lots
    1:1000
    SVGFSA
    Forex, CFDs, Stocks, Indices, Commodities
    MT5
    Debit Card, Credit Card, Visa, Mastercard, Neteller, Skrill, Bitcoin Payments, Wire Transfer
    USD, IDR
    Go To Axofa
  9. 9
    Sage FX
    $1,500 trading competition
    $10
    0.01 Lots
    1:500
    Pending
    Forex, indices, cryptos
    TradeLocker
    Credit Card, Visa, Mastercard, Bitcoin Payments, Ethereum Payments
    USD, EUR, GBP, CAD, AUD
    Go To Sage FX
  10. 10
    Plexytrade
    120% Cash Welcome Bonus
    Ratings
    1.5 / 5
    2.5 / 5
    2.5 / 5
    3.3 / 5
    2.5 / 5
    3.5 / 5
    0.5 / 5
    0.5 / 5
    4.8 / 5
    4.7 / 5
    $50
    0.01
    1:2000
    Unregulated
    CFDs, Forex, Indices, Stocks, Commodities, Crypto
    MT4, MT5
    Bitcoin Payments, Ethereum Payments
    USD, EUR
    Go To Plexytrade

This is why we think these brokers are the best in this category:

  1. DNA Markets - DNA Markets offers a recently enhanced suite of 800+ CFDs covering stocks, indices, forex, commodities and cryptos, providing opportunities to speculate on rising and falling prices. There are no restrictions on strategies with leverage up to 1:30 (Australia) or 1:500 (rest of world).
  2. IG - IG offers a huge selection of 17,000+ CFDs, providing more trading opportunities than most CFD brokers. Traders can go long or short on popular markets like stocks, currencies, commodities and cryptos, while custom price alerts and the IG Academy continue to enhance the trading experience.
  3. IQCent - CFDs are available on forex, indices, commodities and cryptos, although the range of 100+ instruments is limited compared to alternatives such as Quotex with 400+. Leverage is available up to 1:500 but the $250 minimum deposit is noticeably higher than competitors.
  4. RedMars - RedMars caters to various short-term trading styles across popular asset classes, including 7 commodities, 14 indices, and 120+ stocks. Leverage is available up to 1:30 (retail) and 1:500 (pro), amplifying results. However, there is no calculator to help with understanding margin requirements and the depth of investments is limited.
  5. Interactive Brokers - Over 8,000 CFDs are offered on a vast array of instruments, encompassing stocks, indices, forex, and commodities. Moreover, the TWS platform lends itself to seasoned day traders, offering a comprehensive selection of over 100 order types and algorithms, alongside premium market data sourced from reputable sources such as Reuters and Dow Jones.
  6. Videforex - Videforex CFDs are available on forex, indices, cryptocurrencies and commodities with up to 1:500 leverage and tight spreads from near zero. CFDs incur a commission fee of 1%–2.5% and up to 5% for leveraged trades.
  7. xChief - You can trade a competitive range of CFDs encompassing crypto, indices, energies and metals, with very high leverage up to 1:1000. ECN pricing is available, with spreads from 0.0 pips and low commissions from $2.50. A Cent account is also available for those on a smaller budget.
  8. Axofa - CFDs are available on popular asset classes with a competitive $1 minimum deposit. The MT5 integration will allow serious short-term traders to utilize the vast library of technical tools, bots and indicators, but the lack of any CFD trading education puts the broker behind many alternatives.
  9. Sage FX - Trade CFDs on forex, stocks, metals, energies, indices, cryptos and dollar futures. Sage FX offers tight spreads and high leverage on all instruments from 1:100 to 1:500.
  10. Plexytrade - Plexytrade offers a modest selection of CFDs, providing opportunities to speculate on upward/downward price movements across 15 indices, 48 US stocks, 3 commodities, 4 metals, and 5 cryptos. The free margin calculator allows you to work out how much you need to put down to open and maintain leveraged positions.

Best Brokers For Short Selling Comparison

Best Brokers For Short Selling Comparison
Broker Short Selling Rating Minimum Deposit
DNA Markets logo
3.5 / 5 $100
IG logo
4.4 / 5 $0
IQCent logo
3.7 / 5 $250
RedMars logo
3.8 / 5 €250
Interactive Brokers logo
4.3 / 5 $0
Videforex logo
3.4 / 5 $250
xChief logo
3.4 / 5 $10
Axofa logo
3 / 5 $1
Sage FX logo
3 / 5 $10
Plexytrade logo
2.5 / 5 $50

DNA Markets

"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "

Jemma Grist, Reviewer

DNA Markets Quick Facts

FTSE Spread1.7
GBPUSD Spread1.0
Stocks Spread1.0 cent + $0.02 per share, per side (Apple)
Leverage1:500
RegulatorASIC
PlatformsMT4, MT5
Account CurrenciesUSD, EUR, GBP, CAD, AUD, NZD, SGD

Pros

  • After a recent upgrade, there are now over 800 assets available to trade via CFDs, with a particularly impressive range of 120+ cryptos
  • The broker provides 24/5 customer support with response times of <2 minutes during testing
  • DNA Markets offers top-rate platforms and charting tools for day traders with access to MT4 and MT5

Cons

  • Unlike many alternatives, there are limited educational and research tools for traders seeking an all-in-one solution
  • Despite access to MT4 and MT5, there is no proprietary trading app for seamless account management whilst on the go
  • Although it continues to strengthen its client base and reputation, DNA Markets lacks the track record of top brokers like Vantage
Visit DNA Markets
DNA Markets Review

IG

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

Christian Harris, Reviewer

IG Quick Facts

FTSE Spread1.0
GBPUSD Spread0.9
Stocks Spread0.02
Leverage1:30 (Retail), 1:250 (Pro)
RegulatorFCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB
PlatformsWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

  • The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading
  • The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
  • The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award

Cons

  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
Visit IG
IG Review

IQCent

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "

Jemma Grist, Reviewer

IQCent Quick Facts

Bonus Offer20% to 200% Deposit Bonus
FTSE Spread1.4
GBPUSD Spread0.8
Stocks SpreadN/A
Leverage1:500
RegulatorIFMRRC
PlatformsOnline Platform, TradingView
Account CurrenciesUSD, EUR

Pros

  • The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
  • CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
  • The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests

Cons

  • There's no automated trading support for algo traders
  • The broker is not overseen by a respected regulator, though this is common among binary options firms
  • IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
Visit IQCent
IQCent Review

RedMars

"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."

Christian Harris, Reviewer

RedMars Quick Facts

FTSE Spread15
GBPUSD Spread0.7
Stocks SpreadVariable
Leverage1:30 (Retail), 1:500 (Pro)
RegulatorCySEC
PlatformsMT5
Account CurrenciesUSD, EUR

Pros

  • Getting started on RedMars is incredibly easy - you can be up and running in just a few minutes based on tests
  • The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
  • The broker supports a range of flexible payment methods, including wire transfers, credit cards, e-wallets, and notably cryptocurrencies

Cons

  • RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
  • While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
  • The no-frills trading environment offers little beyond the basics, with no Islamic account, PAMM account or copy trading.
Visit RedMars
RedMars Review

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

FTSE Spread0.005% (£1 Min)
GBPUSD Spread0.08-0.20 bps x trade value
Stocks Spread0.003
Leverage1:50
RegulatorFCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
Visit Interactive Brokers
Interactive Brokers Review

Videforex

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."

William Berg, Reviewer

Videforex Quick Facts

Bonus Offer20% to 200% Deposit Bonus
FTSE SpreadFloating from 0.2
GBPUSD SpreadFloating from 0.1
Stocks SpreadNA
Leverage1:500
PlatformsTradingView
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
  • Videforex allows you to enter positions with just ¢0.01
  • You can easily mirror the trades of experienced investors with low fees

Cons

  • The broker isn’t overseen by a trusted regulatory agency
  • US clients aren’t accepted due to legal restrictions
  • No MetaTrader 4 integration
Visit Videforex
Videforex Review

xChief

"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."

William Berg, Reviewer

xChief Quick Facts

Bonus Offer$100 No Deposit Bonus
FTSE Spread70
GBPUSD Spread0.9
Stocks Spread50
Leverage1:1000
RegulatorVFSC
PlatformsMT4, MT5
Account CurrenciesUSD, EUR, GBP, JPY, CHF

Pros

  • xChief delivers a high-quality day trading environment via the MT4 and MT5 platforms, with market-leading charts, indicators and tools
  • Traders can access a copy trading solution via the MetaQuotes Signals service
  • The broker offers a turnover rebate scheme geared towards active investors, as well as trading credits and several other occasional bonuses

Cons

  • Fees and minimums are imposed on most withdrawal methods, including a €60 minimum for SWIFT bank transfers
  • The total range of 150+ assets is much lower than most competitors who typically offer hundreds
  • The broker trails competitors when it comes to research tools and educational resources
Visit xChief
xChief Review

Axofa

"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform. The low entry requirements and ECN spreads are particularly promising, but the lack of transparency and respected regulatory oversight raises security concerns."

William Berg, Reviewer

Axofa Quick Facts

Bonus Offer10% Deposit Bonus
FTSE SpreadNA
GBPUSD SpreadFrom 1.6 pips
Stocks SpreadNA
Leverage1:1000
RegulatorSVGFSA
PlatformsMT5
Account CurrenciesUSD, IDR

Pros

  • The broker offers a range of local payment methods, especially for clients in Asia, as well as crypto deposits
  • The $1 minimum deposit across all 3 accounts will appeal to novices and those on a budget
  • There's a proprietary social/copy trading service for beginners looking to follow successful strategies and for experienced traders looking to sell their strategies

Cons

  • There is limited verifiable information about the broker’s owners and background
  • Our team found inconsistencies between international subsidiaries and website information
  • There is a lack of transparency around pricing and account conditions, which significantly reduces the trust score
Visit Axofa
Axofa Review

Sage FX

"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."

Tobias Robinson, Reviewer

Sage FX Quick Facts

Bonus Offer$1,500 trading competition
FTSE Spread5.0
GBPUSD Spread0.9
Stocks SpreadN/A
Leverage1:500
RegulatorPending
PlatformsTradeLocker
Account CurrenciesUSD, EUR, GBP, CAD, AUD

Pros

  • Bonus offers and trading competitions
  • Low starting deposit from $10
  • Fast withdrawal processing

Cons

  • Lacks educational resources and other extra features
  • Not regulated by any reputable body
  • Relatively narrow range of asset classes
Visit Sage FX
Sage FX Review

Plexytrade

"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."

Christian Harris, Reviewer

Plexytrade Quick Facts

Bonus Offer120% Cash Welcome Bonus
FTSE Spread0.8
GBPUSD Spread0.8
Stocks Spread5
Leverage1:2000
RegulatorUnregulated
PlatformsMT4, MT5
Account CurrenciesUSD, EUR

Pros

  • Despite lacking regulation, Plexytrade provides negative balance protection and reinforces safety protocols by holding client funds in segregated accounts.
  • Plexytrade offers among the highest leverage we’ve seen, up to 1:2000, catering to advanced traders willing to forego regulatory protections.
  • There are various VPS packages starting from $50 per month, but they become complimentary once specific deposit thresholds are reached.

Cons

  • With around 100 instruments, Plexytrade restricts the flexibility of investors who prefer to trade across various assets, especially compared to Blackbull with its 26,000 securities.
  • There are no research and educational materials, falling short of alternatives like IG, while access to the economic calendar is restricted to clients with balances of $500.
  • There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
Visit Plexytrade
Plexytrade Review

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.

  • eToro continues to distinguish itself through its stellar record with 25+ million users and authorization from multiple tier-one regulators including the US SEC and UK FCA.

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.

  • AvaTrade excels for its extensive market offerings, allowing short positions through CFDs across 1,250+ stocks, indices, forex, commodities, and cryptocurrencies.

Fees

Short selling fees on Moomoo app
Moomoo – short selling 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.

  • Moomoo shines for its low fees with zero commissions and competitive short selling rates that vary depending on daily market supply.

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.

  • Interactive Brokers stands out with its comprehensive IBKR’s Securities Loan Borrow (SLB), offering real-time updates on shortable quantities, live and historical borrowing rates, and more throughout the day.

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.

  • Webull excels as one of the most accessible short selling brokers with no minimum deposit.

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.