Fortunly's Guide
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The Best Broker for Short Selling: Our Top 7 Contenders

Written By
Julija A.
Updated
December 06,2022
Some or all of the products/services listed on this page are from our affiliate partners from which we receive commissions. This, however, does not influence the evaluations in our reviews. Learn more by reading our Advertiser Disclosure.

If you’re new to the world of investing, you may be wondering what short selling is – and whether your broker offers it. In a nutshell, short selling is when an investor sells a security they don’t own in anticipation of being able to buy it back at a lower price. Not all brokers offer this service, so if this is something you’re interested in, it’s important to make sure your broker has the capability before signing up.

So which broker is the best for short selling? Let’s find out!

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eToro

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

eToro Logo
OVERVIEW

eToro was one of the first companies to offer Bitcoin trading in 2013. It’s now one of the most popular brokerage platforms in the world, offering various cryptocurrencies for trading, stocks, commodities, fiat currencies, ETFs, and indices. What makes this platform stand out from the competition of brokers that allow short selling is its social aspect - eToro currently has a vast community of users who are encouraged to communicate, share opinions, and copy the trading tactics of more experienced traders. Read Review

  • Opportunity to copy experienced traders
  • Demo account with $100,000
  • It brings a social aspect to investing
Learn More
On Official Website
Stock variety:
Stocks, crypto, commodities, currencies, ETFs, and indices
Research tools available:
TipRanks’ research tools
Fees on trading:
$0

eToro

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

eToro Logo
OVERVIEW

eToro was one of the first companies to offer Bitcoin trading in 2013. It’s now one of the most popular brokerage platforms in the world, offering various cryptocurrencies for trading, stocks, commodities, fiat currencies, ETFs, and indices. What makes this platform stand out from the competition of brokers that allow short selling is its social aspect - eToro currently has a vast community of users who are encouraged to communicate, share opinions, and copy the trading tactics of more experienced traders. Read Review

  • Opportunity to copy experienced traders
  • Demo account with $100,000
  • It brings a social aspect to investing
Learn More
On Official Website
Stock variety:
Stocks, crypto, commodities, currencies, ETFs, and indices
Research tools available:
TipRanks’ research tools
Fees on trading:
$0

TradeZero

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

TradeZero Logo
OVERVIEW

TradeZero is a commission-free trading platform that caters to beginners and professionals alike. This platform offers excellent tools bound to make every trader’s life easier, 100% free limit orders, and free real-time streaming opportunities. TradeZero offers three platforms to short a stock or two, and a first-rate mobile platform for trading on the go. Read Review

  • 24/7 customer support team
  • Top-notch mobile platform
  • Excellent deals on trades
Get 3 Months Free
On ZeroPro & ZeroWeb on the official Website
Stock variety:
Stock, penny stocks, ETFs, and options
Research tools available:
Technical research tools
Fees on trading:
$0

Webull

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Webull Logo
OVERVIEW

Webull is a financial company founded in 2017 and a member of FINRA, SIPC, the NYSE, Nasdaq, and Cboe EDGX Exchange. It offers a superb selection of investment opportunities, including stock shorting and crypto, options, IPO, IRA, and more. With 0% commission on some of the most popular investment options and full extended hours trading, it should certainly make the top of your list of best brokers for shorting stocks, too. Read Review

  • Excellent variety of stocks, crypto, options, IPO, and IRA
  • 0% commissions on stocks, options, and ETF trades
  • 24/7 online customer support
Learn More
On Official Website
Stock variety:
Stocks, crypto, options, IPO, and IRA
Research tools available:
In-depth, Level 2 Advance analytics tool (Nasdaq TotalView)
Fees on trading:
$0

Interactive Brokers

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Interactive Brokers Logo
OVERVIEW

Interactive Brokers is consistently ranked as one of the best platforms for investing. Its features include a comprehensive set of trading tools and a great selection of investment opportunities within 135 markets and across 33 countries. Like other best brokers to short stocks on this list, Interactive Brokers offers some trading opportunities for free, while others come at a price, which is explained in detail on its site. Read Review

  • Comprehensive trading, researching, and reporting tools
  • Feature-rich trading platforms for web, desktop, and mobile
  • Global investment opportunities in 33 countries and 135 markets
Learn More
On Official Website
Stock variety:
Stocks, options, futures, currencies, bonds, and funds
Research tools available:
Excellent selection of research and trading tools
Fees on trading:
$0

TD Ameritrade

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

TD Ameritrade Logo
OVERVIEW

TD Ameritrade is probably the best broker on this list for those just getting started in the investment world. It offers an outstanding selection of research tools to help beginner traders figure out what to invest in. Stocks, futures, ETFs, cryptocurrencies, forex, and short shares are all available on this trading platform with an enviably long history. One of the reasons we recommend it to beginners is the vast library of educational materials you’ll find on the website, while experienced traders can look forward to a wide selection of investment products offered. Read Review

  • Excellent educational materials available, including interactive courses and webinars
  • Multiple technical and fundamental research tools
  • Broad selection of investment products
Learn More
On Official Website
Stock variety:
Stocks, options, mutual funds, ETFs, futures, forex, bonds, and CDs
Research tools available:
Market EDGE, ETF Market Center, Stocks Overview, Stocks Charts, Screeners, Premier List, CD Center, Bond Wizard, Market Java
Fees on trading:
$0

Charles Schwab

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Charles Schwab Logo
OVERVIEW

Charles Schwab is another reputable investment broker you can rely on for shorting a stock. It has a great selection of research and trade tools and superb customer support, which is probably what helped this big business achieve an average of 6.10 million daily trades. Excellent choice for beginners and experts alike, Charles Schwab is truly a household name among investment brokers and a trusted partner for millions of customers. Read Review

  • Robo-advisor and dedicated financial advisor available
  • Excellent customer support
  • Satisfaction and security guarantee
Learn More
On Official Website
Stock variety:
Mutual funds, ETFs, MMFs, stocks, international stocks, options, futures, bonds and fixed-income products, margin loans, annuities, and insurance
Research tools available:
Morning Star, Argus, Market Edge, Credit Suisse, The Economist Intelligence Unit, and S&P Global
Fees on trading:
$0

Cobra Trading

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Cobra Trading Logo
OVERVIEW

Unlike the first two brokerages on our list, Cobra Trading is better suited to professionals and day traders. It offers not one but three platforms for traders interested in shorting stocks, each with a sophisticated set of tools seasoned users will find invaluable. Transparent pricing plans and stellar customer support are also among Cobra Trading’s strong suits. Read Review

  • Excellent for day-trading
  • Three customizable trading platforms
  • Great selection of tools for experienced traders
Learn More
On Official Website
Stock variety:
ETFs, bonds, US stocks, futures, forex, and options
Research tools available:
N/A
Fees on trading:
$0.0015

Guide to Choosing the Top Online Platforms for Short Selling Stocks

Like any other form of investing, short selling is a risky business, so selecting your broker carefully is a must. This is especially true for beginners, as a good platform adapted to your skill level can help you learn the ropes and quickly start earning money.

Be Realistic About Your Investment Knowledge

Assessing what level you are at realistically would be the first step to take, as it can guide your choice of the best online broker for short selling. 

Beginners might prioritize comprehensive glossaries, easily accessible and responsive customer support teams, or educational resources. Some of the best brokerages for beginners will also allow placing practice trades without requiring an actual investment.

A good selection of fundamental and technical data you can rely on while investing is also essential, for example, advanced tools for performing in-depth research and those intended to assist you with making a trade, such as conditional order options.

Review Stock Variety and Other Investment Options

As we’ve mentioned, short selling stocks is a risky business, and you’re probably not going to be able to rely solely on this type of investment to build your wealth. This is why having a robust set of investment options is important. What other financial products does the platform offer? How easily can you build a balanced portfolio? These are all questions to consider before opening an account.

Are the Prices Competitive?

Most brokers that allow short selling have some fee-free investment options you can benefit from, but also charge various fees, pay-to-play pro features, and have requirements regarding the minimum balance you need to start shorting stocks.

Note that, in accordance with the Financial Industry Regulatory Authority’s Margin Rule, the minimum equity requirement for every short sale is $2,000, regardless of the amount traded. This means you won’t be able to find a licensed broker-dealer that allows a sum lower than $2,000 to be used as an initial margin.

Having a firm understanding of all the fees involved with a particular broker could make all the difference in the way you trade. Brokers are not always entirely transparent about the fees they charge, so make sure you do your homework and read the fine print as well. 

Verify the Broker’s Reputation

To do this, look for a disclaimer that says that the broker is a member of the Securities Investor Protection Corporation and FINRA. You should also check whether the company, under SIPC, offers insurance. It should be offering at least $500,000 in insurance but might also provide additional coverage on top of that.

As always, your biggest friend when choosing the top platforms for short selling are professional reviews like this one and customer reviews from current or previous users.

Consider the Online Security Levels

We often take for granted that our personal data is safe online. Unfortunately, that’s not always the case: You should inquire about what kind of security and account protection the broker offers. Specifically, before creating an account and short selling stock, look for the following information:

  1. Is there two-factor authentication? Passwords are often the weakest link, so you should look for a company that offers an additional verification step before you can access your account. 
  2. Does the website use encryption? You want to know that the broker at least has some basic encryption to protect your personal information from prying eyes.
  3. What will the broker do with your information? Make sure to read each broker’s Privacy Policy. If you find out that the company has a habit of selling your personal information to third parties to be able to provide 0% fees, you might want to look elsewhere.

Check the Available Payment Methods

There is no point in even considering a short selling platform if the process of moving funds to and from it turns out to be a costly hassle. Always check for available methods for depositing and withdrawing funds and whether there are fees associated with it.

Some will offer you to deposit funds through checks, make a wire deposit, or ACH transfer. Others will also allow making a payment with your credit card. While most brokerages don’t have fees associated with making a deposit, there’ll likely be some for withdrawals depending on the payment method you choose - trust us, it pays to be informed about these.

Furthermore, you should also get familiar with the platform’s deposit and withdrawal times. It may not seem that important at first glance, but you could be missing out on excellent deals as you wait for your deposit to go through. Some brokerages will also have checking or savings accounts on offer - and if the terms are favorable, it might pay off to sign up for these. 

When you’re evaluating a brokerage, it’s also recommended that you check how difficult it will be to withdraw your funds and how much that’ll cost you in fees.

Quick Breakdown

The Best Brokerage for Short Selling in 2022:

  • eToro

  • TradeZero

  • Webull

  • Interactive Brokers

  • TD Ameritrade

  • Charles Schwab

  • Cobra Trading

Detailed Reviews of Short Selling Brokers

eToro Review

Quick Facts
4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
$0
Trading platform availability:
Mobile and web
Minimum initial funding:
$2,000
Minimum investment amount:
$10

Soon after online forex broker eToro, then known as RetailFX, started offering commodities for trade, it gathered a large trader community. The team behind one of the best platforms for shorting stocks was quick to uncover the power of this community and soon launched its social trading feature, for which eToro is famous today. The new feature, which allowed novice users to automatically copy the investment strategy of successful traders on its platform, was a huge success. 

Since then, eToro has significantly diversified its offer, making room for new investment opportunities and more satisfied traders.

Ease of Use

eToro understands the importance of inclusivity. That’s why this trading platform was built for beginners and experts alike, with an easy-to-use and intuitive interface. 

Some of the most notable features of this top-rated platform for shorting stocks are Social Trading and Smart Portfolios. Social Trading, as previously mentioned, allows anyone to copy top investors’ trading strategies with just a click, while Smart Portfolios offer a shortcut for building a well-balanced portfolio. These are basically templates carefully created by the eToro investment team or eToro’s partners, which focus on specific market segments so investors can choose a theme they can relate to, for example, Hardware & Electronics, Consumer Goods, Energy, Commodities, etc.

Users can effortlessly research the stock they are interested in with the help of TipRanks analytics. 

Traders who have a significant number of followers, i.e, other traders who copy them, can participate in the Popular Investor program and earn up to 2% of their total assets under copy.

Stock and Other Investment Options

At eToro, you can choose among 2,000-plus investment options, including shares available for shorting or longing, numerous cryptocurrencies, ETFs, commodities, and indices. 

Not sure which one you’d like to trade? eToro has you covered. Every new account with this platform gets a virtual portfolio with $100,000 on it. It allows novices to practice trading without risking losing real money.

Pricing, Fees, and Payment Methods

eToro’s pricing model is 100% transparent, without any hidden fees for investors to worry about. It has no management, rollover, or broker fees for investing in stocks. You can purchase these in bulk or, on the contrary, buy fractional shares, with the minimum investment amount being $10. 

At eToro, you can make your deposits via bank transfer, credit cards, Neteller, Skrill, PayPal, Trustly, Rapid Transfer, Sofort, and local online banking options. Deposits are typically free of charge, while withdrawals incur a fee, and so do currencies other than the American dollar.

Reputation and Customer Support

eToro is a multinational company, and each of its subsidiaries is regulated by the local authorities: Its European branch by the Cyprus Securities Exchange Commission, the UK one by the Financial Conduct Authority, and the Australian one by the Australian Securities and Investments Commission. You can rest assured that this reputable shorting broker does everything by the book. 

eToro has an extensive help center available to its traders. In case something goes south, its customer support team is available Monday to Friday via live chat available on the site.

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eToro Review

Quick Facts
4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
$0
Trading platform availability:
Mobile and web
Minimum initial funding:
$2,000
Minimum investment amount:
$10

Soon after online forex broker eToro, then known as RetailFX, started offering commodities for trade, it gathered a large trader community. The team behind one of the best platforms for shorting stocks was quick to uncover the power of this community and soon launched its social trading feature, for which eToro is famous today. The new feature, which allowed novice users to automatically copy the investment strategy of successful traders on its platform, was a huge success. 

Since then, eToro has significantly diversified its offer, making room for new investment opportunities and more satisfied traders.

Ease of Use

eToro understands the importance of inclusivity. That’s why this trading platform was built for beginners and experts alike, with an easy-to-use and intuitive interface. 

Some of the most notable features of this top-rated platform for shorting stocks are Social Trading and Smart Portfolios. Social Trading, as previously mentioned, allows anyone to copy top investors’ trading strategies with just a click, while Smart Portfolios offer a shortcut for building a well-balanced portfolio. These are basically templates carefully created by the eToro investment team or eToro’s partners, which focus on specific market segments so investors can choose a theme they can relate to, for example, Hardware & Electronics, Consumer Goods, Energy, Commodities, etc.

Users can effortlessly research the stock they are interested in with the help of TipRanks analytics. 

Traders who have a significant number of followers, i.e, other traders who copy them, can participate in the Popular Investor program and earn up to 2% of their total assets under copy.

Stock and Other Investment Options

At eToro, you can choose among 2,000-plus investment options, including shares available for shorting or longing, numerous cryptocurrencies, ETFs, commodities, and indices. 

Not sure which one you’d like to trade? eToro has you covered. Every new account with this platform gets a virtual portfolio with $100,000 on it. It allows novices to practice trading without risking losing real money.

Pricing, Fees, and Payment Methods

eToro’s pricing model is 100% transparent, without any hidden fees for investors to worry about. It has no management, rollover, or broker fees for investing in stocks. You can purchase these in bulk or, on the contrary, buy fractional shares, with the minimum investment amount being $10. 

At eToro, you can make your deposits via bank transfer, credit cards, Neteller, Skrill, PayPal, Trustly, Rapid Transfer, Sofort, and local online banking options. Deposits are typically free of charge, while withdrawals incur a fee, and so do currencies other than the American dollar.

Reputation and Customer Support

eToro is a multinational company, and each of its subsidiaries is regulated by the local authorities: Its European branch by the Cyprus Securities Exchange Commission, the UK one by the Financial Conduct Authority, and the Australian one by the Australian Securities and Investments Commission. You can rest assured that this reputable shorting broker does everything by the book. 

eToro has an extensive help center available to its traders. In case something goes south, its customer support team is available Monday to Friday via live chat available on the site.

+ Show more

TradeZero Review

Quick Facts
4 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
$0
Trading platform availability:
Web, desktop, and mobile
Minimum initial funding:
$2,500
Minimum investment amount:
$1

*On ZeroPro & ZeroWeb

TradeZero is an excellent choice for anyone who values transparency. It has four platforms to offer to its traders: ZeroPro, ZeroWeb, ZeroFree, and ZeroMobile. On top of that, it has excellent round-the-clock customer support and real-time news and alerts.

Ease of Use

TradeZero has multiple platforms to cater to every user’s skill level. It also comes with excellent tools to help you get the most out of your trades. For example, the TradeZero Locates Plus feature helps you find shares for shorting in no time and offers you the opportunity to sell back the locates you no longer wish to have in your portfolio. 

Free real-time streaming will allow you to keep an eye out for investment opportunities and find the most shorted stocks as easily. Not sure how to invest? With this platform, you can make use of numerous training videos and manuals to help guide you through the investment process.

Stock and Other Investment Options

Apart from shorting stocks, currently, you can invest in IPOs and options on the TradeZero platform. If you’re looking to diversify your portfolio with some other types of investments, you might find greater variety elsewhere. Still, when it comes to the available options, you can expect to purchase and sell them at the best possible price. 

Pricing, Fees, and Payment Methods

As mentioned before, TradeZero is extremely transparent about its fees. However, if you decide to go with ZeroWeb Level 2 ZeroPro, it’ll cost you $59. 

All limit orders that are 200 shares or more, $1 per share or more, and trade on the Nasdaq, Amex, or NYSE are charged a commission of $0.003 per share, while orders that are below 200 shares, all ETFs, warrants, or stocks on the Amex, or NYSE, and all equity securities below $1 will cost you $0.005 per share.

Trading options is a commission-free trade on this platform. However, you’ll be charged a fee of $25 for deposits that are lower than $500. Withdrawals will set you back between $5 and $125, depending on your payment method choice. 

Speaking of banking options, at the moment, you can fund your account at this short selling platform or withdraw your funds by either direct deposit or bank wire transfers. 

Reputation and Customer Support

TradeZero has a brokerage license and is regulated by FINRA. It also has SIPC insurance. 

TradeZero also has exceptional customer support available 24/7 to its users. If something goes south, you can contact the team behind the best broker for day trading via live chat available on the site. You can also contact them by phone, Monday to Friday, 8 a.m. to 5 p.m. EST or via email.  

+ Show more

Webull Review

Quick Facts
4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
Commission-free
Trading platform availability:
Mobile, desktop, and web
Minimum initial funding:
$2,000
Minimum investment amount:
$5

Webull is a great choice for anyone dipping their toes in the investment waters as well as for experienced traders looking to short stocks. It offers commission-free trading, excellent tools for both analytics and trading, and top-notch customer support that’s available round the clock.

Its biggest selling point is probably the easy-to-use interface which makes it attractive for beginners, although the lack of educational resources may prove other platforms for short selling stocks to be a better pick. 

Ease of Use

Webull is one of the most accessible platforms to start trading on, as even complete beginners will have no problems learning the basics, while seasoned users will likely find its advanced and intelligent tools and services extremely useful. 

If you prefer making trades on your mobile device, you’d be glad to know that Webull offers an equally accessible and well-designed mobile version of its trading platform. Even though the app is optimized for smaller screens, it doesn’t sacrifice any features. All the advanced charts, indicators, and voice commands you may use to short a stock are still available to you on mobile. 

Stock and Other Investment Options

Apart from shorting stocks, at Webull, you can diversify your portfolio by trading stocks, options, crypto, IPOs. The accounts you can open at Webull are individual brokerage accounts and IRAs

However, some commonly offered securities, such as mutual funds and bonds, are lacking.

Pricing, Fees, and Payment Methods

One of the main reasons someone might decide to go with Webull as their platform of choice is the fact that it offers shorting a stock, but also trading stocks, ETFs, and options entirely commission- and fee-free. However, there’s an annual margin rate that varies between 3.99% and 6.99% and fees charged by regulatory bodies and exchanges, so make sure to inform yourself of these beforehand. 

As for the payment methods, Webull accepts ACH and wire transfers. ACH transfers are free of charge for both deposits and withdrawals, while wire deposits typically involve some fees, which vary depending on whether you have an account with a US or non-US bank, so make sure to inform yourself of these before you make a deposit. Luckily, Webull’s website is very transparent about its short selling fees. 

Reputation and Customer Support

Webull’s reputation is undisputed, as it is a member of FINRA, SIPC, the NYSE, and Nasdaq. The membership in SIPC means your funds will be insured up to $500,000. What’s more, Webull’s clearing company, Apex Clearing Corp, provides additional insurance. Note, however, that none of this applies to your cryptocurrency holdings, which are not FDIC- or SIPC-insured.

The customer support is very responsive, and many online reviewers gave it stellar scores. Webull offers 24/7 customer support, which you can reach via phone and email.

+ Show more

Interactive Brokers Review

Quick Facts`
4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
Varies
Trading platform availability:
Web, desktop, and mobile
Minimum initial funding:
$2,000
Minimum investment amount:
$100

Interactive Brokers, also known as IBKR, was founded in 1993. Since then, it has continually provided its customers with competitive rates for trading on more than 135 markets. It has been consistently ranked as one of the best platforms for day trading, mostly because of the state-of-the-art tools it offers to its traders to help them invest in a variety of financial products. 

Ease of Use

The IBKR platform was designed with experienced and active traders in mind. Beginners might have a hard time finding their way around, especially when we take into consideration how many options you have in terms of both tools and financial products offered. 

However, more experienced traders will find IBKR’s platform very well designed and its IBot, the AI-powered digital assistant, exceptionally helpful for navigating the platform. This short selling broker’s trading platforms can be accessed via your browser, mobile, or downloaded to your desktop PC. The mobile version is fairly limited in features when compared to the Trader Workstation. 

The Trader Workstation is a robust platform that’s perfect for active traders and investors managing multiple products. It offers traders flexibility not commonly found with other brokers, such as staging orders for later, creating conditional orders, and even connecting another application to it to place automated trades. 

Stock and Other Investment Options

If you want to have a truly diversified portfolio, Interactive Brokers is the place to start building it as it offers an impressive selection of products. Interactive Brokers offers short selling stocks, options, futures, forex (23 currencies), bonds, and funds. IBKR gives you access to 135 markets across 33 countries. It also supports fixed-income products, including corporate and government bonds from Europe. 

With Interactive Brokers, you can also participate in fractional share trading, trading IPOs, warrants, Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.  

Pricing, Fees, and Payment Methods

Interactive Brokers, too, is very transparent about its fees for shorting a stock, which are explained in detail on the website. The pricing model, however, is relatively complex. You can choose between an IBKR Lite and IBKR Pro plan.

If you choose the Lite version, the pricing will be fixed for most investment options, while with the Pro plan, you’ll be able to choose between fixed and tiered pricing. If you were to opt for the fixed pricing system, the rate per share would be $0.005. The same price applies to penny stocks. Options would cost you $0.65 per contract.

When it comes to payment options, you can fund your account and withdraw your funds via wire transfers, ACH transfers, RFP, checks, online payments, and direct rollovers. You can also use direct deposits and online bill payment options to fund your account. 

Reputation and Customer Support

All 10 of the IBKR offices around the world are properly licensed in accordance with the local regulations. Interactive Brokers LLC is a member of the NYSE, FINRA, and SIPC and is regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission. Australian, Canadian, Hong Kong, UK, India, Japan, Ireland, Singapore, Central European offices are also registered with the appropriate regulatory bodies. 

IBKR’s customer support is highly rated by users. If you find yourself in need of the help from the team behind this best short selling broker, you can send them an email, call them, or chat with them to get the information you need. You can also report a bug or another problem, request or vote for new features, participate in the community forum, and help other users solve their problems.

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TD Ameritrade Review

Quick Facts
4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
$0
Trading platform availability:
Desktop, web, and mobile
Minimum initial funding:
$2,000
Minimum investment amount:
$0

When the TD Waterhouse USE and Ameritrade merger happened in 2006, TD Ameritrade emerged as the perfect discount brokerage in the US. From there, it has grown into an investment brokerage that has more than 11 million client accounts with over $1 trillion in assets and processes approximately half a million trades daily. This amazing track record makes TD Ameritrade one of the best retail brokers for short selling. 

You may have heard that another merger took place in 2020: This time, Charles Schwab acquired TD Ameritrade in a deal reportedly worth $22 billion. However, according to the official TD Ameritrade site, the two broker-dealers will continue to operate as separate companies until the second half of 2023, when all accounts will be moved to the combined company platform.

Ease of Use

TD Ameritrade is intended for everyone, regardless of their skill level. Beginners can expect a personalized AI-powered learning experience and an intuitive platform that’s easy to get the hang of. The platform is filled with innovative features that’ll help both beginners and experts make their short-selling more profitable in no time. The Educational Center offers various webcasts and the possibility to create your own personalized learning path by providing information about your financial goals. 

Stock and Other Investment Options

While TD Ameritrade is an excellent brokerage for shorting stocks, you also have plenty of other options to invest in. TD Ameritrade offers stocks, options, mutual funds, and ETFs. You’ll also be able to trade bonds, CDs, futures, and exchange forex currencies

With this excellent variety of investment products on offer, we’re certain that you’ll be able to create a diversified portfolio with any of these online brokers that allow short selling.

Pricing, Fees, and Payment Methods

TD Ameritrade charges no commissions on US exchange-listed stock, ETFs, and options trades. OTC stocks come with a $6.95 fee. You don’t have to pay to use the platform itself and you don’t have to fulfill a particular minimum when placing your order. 

You can fund your account or make a withdrawal via ACH, which typically requires only five minutes and is by far the fastest method available. Wire transfers and physical stock certificates usually take up to a day, checks require one to three days, and transferring an account from another firm will take about a week. 

Reputation and Customer Support

TD Ameritrade is one of the most reliable short sell brokers, regulated by the SEC and a member of both FINRA and SIPC. It currently has branches in 53 states and many more outside of the US.

In case you have questions or a problem related to your account, you can pay a visit to the closest branch, chat with the customer care team online, or give them a call.  

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Charles Schwab Review

Quick Facts
4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
Fees may apply
Trading platform availability:
Desktop, web, and mobile
Minimum initial funding:
$2,000
Minimum investment amount:
$100

Charles Schwab is a household name that concludes our list of the best brokers for shorting stocks. Handling 2.2 million accounts that hold more than $7.8 trillion in assets, it’s a reputable broker and a good place to start (or continue) your investment journey.

Unlike many other brokerages that only offer trading platforms to their users, Charles Schwab provides a fully rounded service that, in addition to trading platforms for self-guided investing, also has a robo-advisor and experienced personnel available to help you reach your investment goals. 

Ease of Use

Charles Schwab’s trading software can be accessed through your browser or downloaded to your computer or mobile device. All platforms, even the short selling apps, have streaming data to offer, but also news and relevant quotes. You can also analyze trade ideas with the help of charts and studies. 

Experts’ insights, resources, and educational materials are available in case you need assistance with investing. Furthermore, you can also use the robo-advisor to maximize your chances of turning a profit. Finally, if you’re not happy with the services provided, Schwab will refund your fee or commission.

Stock and Other Investment Options

Currently, at Charles Schwab, you can short stocks with ease as it has excellent short stock availability, but you can also diversify your portfolio by investing in thousands of mutual funds on offer or trading more than 2,000 ETFs with $0 commission. The $0 commission applies to stocks as well. With Schwab, you’ll gain access to more than 50 international exchanges.   

Here, you also can trade bonds, options, futures, margin loans, annuities, and even get insurance!

Pricing, Fees, and Payment Methods

As mentioned before, this brokerage will charge you nothing for trading listed stocks, ETFs, and options online. Options come with a $0.65 contract fee. Trading OTC stocks will cost you $6.95 per trade. The company offers a satisfaction guarantee, which is not common among short selling stock brokers.

Anyone interested in stock shorting with Schwab should keep in mind that the company may charge a stock borrow fee for any open short position you have in your account. The fees change daily and depend on several factors, such as the supply and demand for the particular security. 

Transferring money into and out of your account if you’re already a Schwab customer is free of charge. For funding your account, you can use check deposits, wire deposits, and direct deposits. The processing times vary but typically take a day or two. For wire transfers, fees vary between $15 and $20.

Reputation and Customer Support

Charles Schwab is a member of SIPC, FDIC, and an Equal Housing Lender. However, its brokerage products are not FDIC-insured. 

If you experience any issues while trading on the platform, you can reach out to Schwab’s support team via phone, live chat (available 24/7), or you can visit a local branch. Currently, Charles Schwab has more than 360 branches, so if you prefer to get assistance in person, you’ll likely find a branch nearby.

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Cobra Trading Review

Quick Facts
4 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Price for shorting stocks:
$0.0015
Trading platform availability:
Desktop
Minimum initial funding:
$30,000
Minimum investment amount:
N/A

Founded in 2003, Cobra Trading quickly became one of the industry leaders in providing excellent brokerage services. We consider it one of the best brokers to short stocks thanks to its competitive rates and the availability of several trading platforms.

Ease of Use

Ease of use is, unfortunately, not something the Cobra Trading platform puts enough emphasis on, starting from the website itself. Not very beginner-friendly and geared more toward experienced traders, it offers three professional platforms for shorting stocks and investing in other financial products. 

The DAS Trader Pro platform has advanced features such as charting, advanced order types, and multiaccount management, making it an excellent solution for multiinstrument trading and portfolio management. 

Sterling Trader PRO is the platform to go with when looking to trade equities. It’s also among the best platforms for trading options, as it is fully customizable to provide an excellent trading experience. 

Lastly, Cobra TraderPro is a platform loaded with features that active traders or investors will find beneficial. It offers a short locate monitor, which will help you immensely when looking for opportunities to short stocks, but also advanced charting, hotkeys, and real-time Level 2 market data. 

Stock and Other Investment Options

Apart from excellent stock shorting opportunities, on the Cobra Trading platform, you’ll be able to purchase and sell ETFs, bonds, US stocks, futures, forex, and options. Unfortunately, one of the best brokers for shorting currently doesn’t offer any international stocks, and it remains to be seen whether this type of product will be added in the future.

Pricing, Fees, and Payment Methods

Cobra Trading has two pricing tiers: for shares and options. All trades are charged a $1 commission and are subject to other regulatory fees. If you were to trade up to 250,000 shares per month, you could expect to pay a $.004 commission per share. For 2,000,000 to 10,000,000 shares per month, the commission per share drops to $.002. 

Currently, you can fund your account via wire transfers, ACH bank transfers, or using a check. For wire withdrawals and deposits, there is an additional fee, which stands at $20. If you are depositing or withdrawing internationally, the price jumps to $25.

Reputation and Customer Support

If you are wondering about the reliability of Cobra Trading, you should know that the broker is a FINRA, SIPC, and NFA member.

In case you encounter any problems with this platform or its tools for short selling, you can contact the customer support team via phone, email, and live chat available on the site. The working hours of the support team are 7 a.m. to 4:30 p.m. (CST), Monday to Friday. If you need to contact the team outside the working hours, it’s best to send them an email.

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FAQ

Which broker is best for short selling?

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It depends on your specific needs. TD Ameritrade is among the best short selling brokers for beginners, while Interactive Brokers bring more than 40 years of experience to the platform. Charles Schwab has the best tools for investing, while Cobra Trading has the best rates for high-volume traders. 

What broker allows you to short penny stocks?

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Some popular brokers that will allow you to short penny stocks are Charles Schwab and Interactive Brokers. Fidelity Investments is another well-known short penny stocks broker.

Do brokers charge for short selling?

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Typically, brokers will only charge investors the fee for borrowing the stocks to short. Of course, depending on the availability of the stock you’re looking to short, that fee might be lower or higher.

Does Robinhood sell short?

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No, at the moment, Robinhood doesn’t offer short selling, even with the premium account. If you are interested in this type of investment you should consider some alternatives, such as Webull, TradeZero, or Charles Schwab.

Is TD Ameritrade good for shorting?

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Yes, TD Ameritrade is often ranked as one of the best brokers for short selling, as it has an excellent selection of trading tools you can use entirely for free, and its intuitive user interface makes it a good choice for beginners and experienced traders alike. The platform also charges no fees for stock trading, making it a lucrative opportunity for any trader.