Best Brokers For Short Selling

Written By

Michael MacKenzie

Edited By

James Barra

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 5 best platforms based on our findings, offering either direct short selling or short selling through products like CFDs:

AvaTrade - AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on underlying assets in the broker’s feature-rich web and mobile platforms with market-leading research tools to help discover opportunities.
Deriv.com - You can trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. There are plenty of charting tools available for technical traders, including over 20 indicators in the Deriv Trader platform. New users can also open an account and start trading CFDs instantly.
Pepperstone - Pepperstone maintains its position as one of the fastest and most dependable CFD brokers during our latest round of testing. With execution speeds averaging around 30ms and an outstanding fill rate of 99.90%, the broker ensures a seamless trading experience without requotes or dealing desk interference. It also provides ample trading opportunities across over 1,300 assets.
XM - Day traders can speculate on leveraged CFDs with zero commissions, spanning popular markets including currencies, equities and commodities. Additionally, the MetaTrader platforms collectively offer dozens of advanced technical indicators built for short-term strategies.
IC Markets - You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC Markets ensures optimal conditions for scalpers, hedgers, and algo traders alike.

Best Brokers For Short Selling Comparison

Best Brokers For Short Selling Comparison
Short Selling Rating	Minimum Deposit	Visit
4.9 / 5	-	Visit
4.4 / 5	$5	Visit
4.8 / 5	$0	Visit
4.4 / 5	$5	Visit
4.8 / 5	$200	Visit
4.6 / 5	$100	Visit
3.7 / 5	$50	Visit
4.4 / 5	$0	Visit
4.2 / 5	$10	Visit
3 / 5	$100	Visit
4.5 / 5	$100	Visit
4.1 / 5	$50	Visit
4.5 / 5	$10	Visit
3.7 / 5	-	Visit
4.5 / 5	$20	Visit

#1 - AvaTrade

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Review

Why We Chose AvaTrade

AvaTrade's 1250+ leveraged CFD products span a wide range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on underlying assets in the broker’s feature-rich web and mobile platforms with market-leading research tools to help discover opportunities.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team

FTSE Spread: 0.5
GBPUSD Spread: 1.5
Stocks Spread: 0.13
Leverage: 1:30 (Retail) 1:400 (Pro)
Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade

About AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

Pros

Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill

Cons

It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
Traders from the US are not accepted
There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders

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#2 - Deriv.com

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Review

Why We Chose Deriv.com

You can trade CFDs on popular markets, including the broker's exclusive synthetic indices which are available 24/7. There are plenty of charting tools available for technical traders, including over 20 indicators in the Deriv Trader platform. New users can also open an account and start trading CFDs instantly.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team

FTSE Spread: 0.5
GBPUSD Spread: 0.5
Stocks Spread: 0.07
Leverage: 1:1000
Regulator: MFSA, LFSA, VFSC, BFSC
Platforms: Deriv Trader, MT5

About Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

Pros

Traders can use multipliers between 1 and 30, with take profit, stop loss and deal cancellation parameters
Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
The free demo account is ideal for practicing short-term trading strategies and no registration is required

Cons

There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
There's no loyalty program or rebate scheme for high volume traders
The range of 100+ assets trails some competitors such as Quotex which offers 400+

Visit Deriv.com

#3 - Pepperstone

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Review

Why We Chose Pepperstone

Pepperstone maintains its position as one of the fastest and most dependable CFD brokers during our latest round of testing. With execution speeds averaging around 30ms and an outstanding fill rate of 99.90%, the broker ensures a seamless trading experience without requotes or dealing desk interference. It also provides ample trading opportunities across over 1,300 assets.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team

FTSE Spread: 1.0
GBPUSD Spread: 0.4
Stocks Spread: 0.02
Leverage: 1:30 (Retail), 1:500 (Pro)
Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade

About Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

Pros

Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing.

Cons

There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.

Visit Pepperstone

#4 - XM

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Review

Why We Chose XM

Day traders can speculate on leveraged CFDs with zero commissions, spanning popular markets including currencies, equities and commodities. Additionally, the MetaTrader platforms collectively offer dozens of advanced technical indicators built for short-term strategies.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."
- DayTrading Review Team

FTSE Spread: 1.5 pts
GBPUSD Spread: 1.9
Stocks Spread: 0.002
Regulator: ASIC, CySEC, DFSA, FSC, FSCA
Platforms: MT4, MT5

About XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

Pros

1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries
The broker offers premium research including market sentiment, fundamental insights and strategy builders
Powerful MT4 and MT5 platforms are available with 60+ and 80+ technical charting tools

Cons

There is weak regulatory oversight through the global entity
There's $5 inactivity fee after only 3 months, though this won't affect active traders
PayPal deposits are not supported

Visit XM

#5 - IC Markets

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Review

Why We Chose IC Markets

You gain access to over 2,250 CFDs, available for trading 24/5 across popular markets such as forex, commodities, indices, stocks, and bonds. Utilizing deep liquidity and advanced bridge technology, IC Markets ensures optimal conditions for scalpers, hedgers, and algo traders alike.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team

FTSE Spread: 1.0
GBPUSD Spread: 0.23
Stocks Spread: 0.02
Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
Regulator: ASIC, CySEC, FSA
Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade

About IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

Pros

With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.

Cons

Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.

Visit IC Markets

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 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:

Regulatory credentials – We went beyond the details advertised, verifying each broker’s license on the relevant agency’s website to ensure it was valid.
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.
Platform quality – Putting platforms and tools to the test, we actively placed paper trades, assessing their suitability specifically for short selling.
Trading markets – We investigated the markets and instruments available for short selling to ensure users have ample trading opportunities.
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.