Best Brokers For Short Selling 2025
We’ve tested the top brokers that allow short selling, enabling you to capitalize on market downturns through products like contracts for difference (CFDs).
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When testing Interactive Brokers, we found short selling of stocks, forex, and CFDs to be very flexible. Borrow costs were clear and often cheaper than other brokers, averaging 0.015% daily for forex CFDs and 1.1% for equity CFDs, with minimal restrictions. IBKR's platforms and market data are superior, making them suitable for advanced traders using precise short-selling strategies.
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In our evaluations, NinjaTrader excelled in simplifying short selling for futures and forex CFDs. Borrowing costs were about 0.02% daily for forex CFDs and around 1.3% for futures and equity CFDs. For short selling via futures, it offers more instruments and specific tools than nearly all other firms we tested.
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When we tested Plus500US, short selling was simple: sell to open futures contracts like micro equity indices and crude oil, then buy to close. With futures, there are minimal borrow issues or fees; costs are clear (commission + exchange/NFA fees), margins update in real-time, and the web platform is intuitive with integrated research tools.
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IQCent simplified bearish trading: users could place put options on currencies and crypto with expiries ranging from seconds to a month. These had fixed payouts and no need for borrow or overnight financing. Execution was quick during news events, supporting fast, strategic downside perspectives.
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On Capitalcore, expressing a short market thesis involves choosing down binary contracts. This offers capped risks at the initial stake, with clear payout terms shown in the trade panel before entry. During testing, the straightforward process allowed us to quickly move through setups without the CFD constraints found at some short-selling brokers we've reviewed.
Compare the Best Short Selling Brokers by Core Features
We evaluated each broker offering short selling across the metrics that matter most. Here’s how the top platforms compare:
| Broker |  |
USD Account |
Demo Account |
Minimum Deposit |
Minimum Trade |
Leverage |
Copy Trading |
Regulator |
Instruments |
Platforms |
Account Currencies |
Automated Trading |
AI |
Guaranteed Stop Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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✓ | ✓ | $0 | $100 | 1:50 | ✗ | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF | Capitalise.ai, TWS API | ✓ | ✗ | |
 |
✓ | ✓ | $0 | 0.01 Lots | 1:50 | ✗ | NFA, CFTC | Forex, Stocks, Options, Commodities, Futures, Crypto | NinjaTrader Desktop, Web & Mobile, eSignal | USD | NinjaScript or via Automated Trading Interface | ✗ | ✗ | |
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✓ | ✓ | $100 | 0.0 Lots | 1:50 | ✗ | CFTC, NFA | Futures on Cryptocurrencies, Metals, Agriculture, Forex, Interest rates, Energy, Equity Index future contracts | WebTrader, App | USD | ✗ | ✗ | ✗ | |
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✓ | ✓ | $250 | $0.01 | 1:500 | ✓ | IFMRRC | Binary Options, CFDs, Forex, Indices, Commodities, Crypto | Online Platform, TradingView | USD, EUR | ✗ | ✗ | ✗ | |
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✓ | ✓ | $10 | 0.01 Lots (CFD/Forex), $1 (Binaries) | 1:2000 | ✗ | ✗ | Forex, Metals, Stocks, Cryptos, Futures Indices, Binary Options | WebTrader, Pro | USD | ✗ | ✗ | ✗ | |
| Broker | |
USD Account |
Demo Account |
Minimum Deposit |
Minimum Trade |
Leverage |
Copy Trading |
Regulator |
Instruments |
Platforms |
Account Currencies |
Automated Trading |
AI |
Guaranteed Stop Loss |
How Secure Are the Top Short Selling Platforms?
When engaging in leveraged strategies like short selling, platform security is critical. See how leading brokers protect your capital:
| Broker | Trust Rating |
Guaranteed Stop Loss |
Negative Balance Protection |
Segregated Accounts |
|---|---|---|---|---|
|
✗ | ✓ | ✓ | |
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✗ | ✗ | ✗ | |
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✗ | ✗ | ✓ | |
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✗ | ✗ | ✗ | |
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✗ | ✓ | ✓ | |
| Broker | Trust Rating |
Guaranteed Stop Loss |
Negative Balance Protection |
Segregated Accounts |
Best Short Selling Apps for On-the-Go Traders
We tested mobile platforms that support short selling, focusing on execution speed, reliability, and advanced functionality. Here’s how they ranked:
| Broker | Mobile Apps |
iOS Rating |
Android Rating |
Smart Watch App |
|---|---|---|---|---|
|
iOS & Android | ✓ | ||
|
iOS & Android | ✗ | ||
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iOS & Android | ✗ | ||
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iOS & Android | ✗ | ||
|
Android, Webtrader | ✗ | ||
| Broker | Mobile Apps |
iOS Rating |
Android Rating |
Smart Watch App |
Are The Best Short Selling Brokers Good For Beginners?
New to short selling? These brokers offer user-friendly interfaces, educational resources, and built-in risk tools to help you get started:
| Broker | Demo Account |
Minimum Deposit |
Minimum Trade |
Education Rating |
Support Rating |
Fractional Shares |
Demo Competitions |
|---|---|---|---|---|---|---|---|
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✓ | $0 | $100 | ✓ | ✗ | ||
|
✓ | $0 | 0.01 Lots | ✗ | ✗ | ||
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✓ | $100 | 0.0 Lots | ✗ | ✗ | ||
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✓ | $250 | $0.01 | ✗ | ✗ | ||
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✓ | $10 | 0.01 Lots (CFD/Forex), $1 (Binaries) | ✗ | ✗ | ||
| Broker | Demo Account |
Minimum Deposit |
Minimum Trade |
Education Rating |
Support Rating |
Fractional Shares |
Demo Competitions |
Are The Best Short Selling Brokers Good For Advanced Traders?
See which short selling brokers deliver for pros, with advanced charting tools, ultra-fast execution, and access to a wide range of shortable markets:
| Broker | Automated Trading |
VPS |
API |
AI |
Pro Account |
Leverage |
Low Latency |
Extended Hours |
|---|---|---|---|---|---|---|---|---|
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Capitalise.ai, TWS API | ✗ | ✗ | ✓ | ✗ | 1:50 | ✓ | ✓ |
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NinjaScript or via Automated Trading Interface | ✗ | ✗ | ✗ | ✗ | 1:50 | ✓ | ✗ |
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✗ | ✗ | ✗ | ✗ | ✗ | 1:50 | ✓ | ✗ |
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✗ | ✗ | ✗ | ✗ | ✗ | 1:500 | ✗ | ✗ |
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✗ | ✓ | ✗ | ✗ | ✗ | 1:2000 | ✗ | ✗ |
| Broker | Automated Trading |
VPS |
API |
AI |
Pro Account |
Leverage |
Low Latency |
Extended Hours |
Accounts Comparison
Compare the trading accounts offered by Best Brokers For Short Selling 2025.
| Broker | Demo Account |
Interest on Cash |
Islamic Account |
Joint Account |
Managed Account |
PAMM |
MAM |
LAMM |
Pro Account |
|---|---|---|---|---|---|---|---|---|---|
|
✓ | USD: 4.8%, GBP: 4.7% | ✗ | ✓ | ✓ | ✗ | ✓ | ✗ | ✗ |
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✓ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ |
|
✓ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ |
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✓ | ✗ | ✗ | ✗ | ✓ | ✗ | ✗ | ✗ | ✗ |
|
✓ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ |
| Broker | Demo Account |
Interest on Cash |
Islamic Account |
Joint Account |
Managed Account |
PAMM |
MAM |
LAMM |
Pro Account |
Short Selling Broker Ratings – Our Complete Scorecard
Dive into the full ratings breakdown for the highest-performing short selling brokers, based on our independent tests and expert reviews:
| Broker | Trust |
Platforms |
Assets |
Mobile |
Fees |
Accounts |
Research |
Education |
Support |
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| Broker | Trust |
Platforms |
Assets |
Mobile |
Fees |
Accounts |
Research |
Education |
Support |
Trading Fees Compared – Where’s the Best Value for Short Sellers?
We analyzed commissions and spread structures to find brokers offering the most competitive pricing for short selling strategies:
| Broker | Cost Rating |
Fixed Spreads |
Inactivity Fee |
CFD Stocks Spread |
EUR/USD Spread |
Crypto Spread |
|---|---|---|---|---|---|---|
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✗ | $0 | 0.003 | 0.08-0.20 bps x trade value | 0.12%-0.18% | |
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✗ | $25 | ✗ | 1.3 | Floating | |
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✗ | $0 | ✗ | 0.75 | ✗ | |
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✗ | $10 | N/A | 0.3 | Variable | |
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✗ | $0 | 1.5 (Apple) | 0.4 | $45 | |
| Broker | Cost Rating |
Fixed Spreads |
Inactivity Fee |
CFD Stocks Spread |
EUR/USD Spread |
Crypto Spread |
Most Popular Short Selling Brokers Among Active Traders
Want to know which platforms short sellers are turning to? These brokers are attracting the most clients:
| Broker | Popularity |
|---|---|
| Interactive Brokers |
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| NinjaTrader |
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Why Trade With Interactive Brokers?
Interactive Brokers is ideal for seasoned traders due to its robust charting platforms, updated data, and adaptability, especially with the IBKR Desktop application. Its exceptional pricing and advanced order features appeal to traders, and its variety of stocks remains unmatched in the market.
Pros
- IBKR is a highly regarded brokerage, regulated by prime authorities. This ensures the safety and reliability of your trading account.
- The TWS platform is designed for intermediate to advanced traders. It includes over 100 order types and a dependable real-time market data feed that rarely experiences downtime.
- Interactive Brokers was named Best US Broker for 2025 by DayTrading.com for its dedication to US traders, ultra-low margin rates, and affordable global market access.
Cons
- IBKR offers many research tools. However, the tools are not uniformly distributed across trading platforms and the web-based 'Account Management' page, causing confusion for the users.
- Only one active session per account is allowed, which means you can't run the desktop version and mobile app at the same time. This can sometimes lead to a frustrating trading experience.
- Customer service may take time to respond, and there may be delays in fixing problems based on tests. It could be difficult to reach the customer service promptly.
Why Trade With NinjaTrader?
NinjaTrader consistently satisfies active futures traders with its low-cost service and high-quality analysis tools. It offers superior charting features, including hundreds of indicators and over 10 chart types.
Pros
- Low costs, with $50 trading margins and commissions starting at $.09 per micro contract.
- You can access thousands of applications and add-ons from developers worldwide for trading.
- Traders can access a free platform and trade simulation capabilities with the unlimited demo.
Cons
- You need to register with partner brokers to trade in securities other than forex and futures.
- Some payment methods require a withdrawal fee.
- The advanced trading tools require an additional fee.
Why Trade With Plus500US?
Plus500US is an excellent choice for beginners, offering a user-friendly platform, low trading margins, and access to the Futures Academy to improve trading skills. Its powerful tools and reliable service earned it second place in DayTrading.com's annual 'Best US Broker' award.
Pros
- The account setup, pricing structure, and web platform make futures trading simpler than competitors like NinjaTrader.
- Plus500US stands out for its low fees, competitive trading margins, and no charges for inactivity, live data, routing, or platform use.
- The Futures Academy is a useful resource for beginner traders due to its captivating videos and simple articles. Its unrestricted demo account is also beneficial for practicing trading strategies.
Cons
- Plus500US is expanding its investment options, but it currently only offers around 50+ futures and no stocks.
- The private trading platform is easy to use, but doesn't have the advanced analysis tools that platforms like MetaTrader 4 do.
- Testing showed fast response times for support, but phone aid is not available.
Why Trade With IQCent?
IQCent is ideal for traders who want a simple platform for binary options and CFD trading that has low fees and offers copy trading. It features a variety of accounts and requires less than a minute to get started with a $250 deposit.
Pros
- Enthusiastic traders can join trading competitions and win cash prizes.
- Based on evaluations, the fees for trading CFDs are competitively priced. This includes 0.7 pips for major forex pairs like EUR/USD.
- IQCent has expanded its assets by adding over 60 new options, including popular cryptocurrencies like TON and SHIB; leading stock CFDs such as TSLA and NVDA; and exotic FX pairs like THB and HUF.
Cons
- The broker is not regulated by a reputable authority, which is typical for binary options companies.
- The market analysis is simple, offering few technical overviews and limited opinions from analysts.
- Automated trading is not available for algorithmic traders.
Why Trade With Capitalcore?
Capitalcore's key features include an easy-to-use binary platform with TradingView's advanced charting, and 'double up' and 'rollover' functions for quick trade adjustments. However, it lacks strong regulatory oversight and educational resources, making it less competitive than leading brokers.
Pros
- Capitalcore charges no swap fees, making it attractive for Islamic traders seeking to align with Islamic Finance.
- The support team is available around the clock and provided immediate, useful responses during our test.
- Capitalcore, unlike many brokers, provides a quick and limitless demo account for trading.
Cons
- Capitalcore's limited education and research offerings are inferior to top tier firms such as IG, making it less ideal for new traders.
- The platform only supports its own software and does not integrate with popular trading tools like MetaTrader or cTrader. These tools offer economic news and automatic trading features.
- During testing, the web platform showed inconsistent performance, with occasional technical issues preventing the trading platform from loading properly.
Filters
How We Chose The Best Brokers For Short Selling
Short selling – or ‘going short’ – allows traders to potentially profit from falling markets. However, not all brokers support this approach, and the quality of the short selling experience can vary widely across platforms.
To identify the best brokers for short selling, we first filtered platforms that offer the necessary products, such as contracts for difference (CFDs). This initial step ensured that every broker we considered genuinely supports trading strategies designed to capitalize on market downturns.
From there, we ranked the eligible brokers using our comprehensive broker rating system, which takes into account over 200 data points across key categories like fees, execution speed, platform usability, regulatory standing, risk management tools, and more.
We also incorporated findings from our hands-on testing, where we assess each broker’s features in the trading environment.
What To Look For In A Broker Offering Short Selling
The key things to consider when selecting a brokerage to use for going short are:
Trust
Irrespective of your investing style or strategy, it’s critical to ensure that the brokerage in question is licensed to trade by a respected global regulator. You wouldn’t put your cash in a bank that’s not properly vetted and regulated by a trusted authority, right?
Regulators in regions with developed financial markets like the FCA in the UK and ASIC in Australia typically provide a cataloge of approved brokerages on their websites. Some also provide ‘warning lists’ of companies and individuals that have been prohibited from doing business in their territories.
Pro tip: Regulatory status isn’t the only thing to check when assessing a broker’s trustworthiness, however. Can a licensed company be considered reliable if, for instance, their trading platform stops working during a short sell, traders have issues withdrawing funds, or they offer a poor level of customer support?
It is therefore also a good idea to read through user reviews and analyses from respected financial websites to get a full picture of what to expect.
Top broker for trust: Pepperstone is among the most trusted brokers for short selling that we’ve tested. It’s authorized in multiple regions across the globe, including the FCA (UK), ASIC (Australia), BaFin (Germany, and DFSA (Dubai). It’s also scooped the financial education website, DayTading.com’s, ‘Best Overall Broker’ award.
Asset Range
When a trader chooses to go ‘short,’ having a wide selection of securities to choose from is often a good idea. This increases the chances you have of finding lucrative trading opportunities to capitalize on.
Retail investors have a multitude of asset classes they can trade today, including stocks, forex, bonds, commodities and cryptocurrencies. However, the range of securities on offer can differ greatly from broker to broker based on our tests.
Pro tip: Some brokerages restrict short selling on less liquid assets, however, as the availability of such securities for lending purposes can be extremely low.
For short sellers, it’s essential to check whether the broker offers trading using derivatives like contracts for difference (CFDs). With these financial instruments, investors can speculate on market movements without having to borrow any underlying asset.
Top broker for asset range: CMC Markets offers trading on more than 12,000 financial instruments – more than most short selling brokers we’ve evaluated. Investors can go short on currencies, equities, commodities, indices, exchange-traded funds (ETFs) and US government bonds (Treasuries).
CMC Markets offers an easy-to-use interface for short selling via CFDs
Trading Platform
When it comes to assessing the broker’s platform, there are several important factors to consider, including:
- Is the trading software easy to navigate and customizable?
- Does the platform include real-time data and advanced charting tools?
- How quickly can short trades be executed?
- Is algorithmic/automated trading available?
- Does it provide price alerts and notifications on key events?
- How secure and stable is the trading platform?
Traders also need to ensure that the broker supports the use of a third-party trading platform (like one of the MetaTrader systems, cTrader and TradingView) if they wish to go down that path.
Short sellers especially need to pay close attention to the platform’s risk management tools, as there’s no ceiling on an asset’s potential price increases, bringing the risk of gigantic losses. Order types like stop loss and take profit instructions, for instance, are powerful weapons in helping traders to limit losses and book profits respectively.
Top broker for trading platform: While XTB no longer supports trading with MetaTrader, we’ve found its xStation proprietary system super simple to navigate and it offers a variety of tools (including a stock screener, configurable alerts and excellent charting software).
XTB also allows customers to effectively trade ‘on the go.’ Sophisticated smartphone apps for iOS and Android systems are available. Traders can even short sell through their smartwatch.
Importantly for short sellers, XTB also offers multiple order types to help them manage risk. These include stop loss orders, trailing stop losses and take profit instructions.
Dealing Costs
Keeping trading costs to a minimum is essential, especially for active short sellers. So closely analyze things like transaction fees, account charges, withdrawal and deposit fees when tallying up different brokerages.
It’s also important to consider the size of the broker’s bid (buy) and offer (sell) spreads. Paying a transaction fee can be more cost-effective than using an intermediary that inflates spreads to boost their profits.
Short sellers specifically need to pay close attention to borrowing fees. The broker will charge for locating and then borrowing a security for the trader to sell. Alternatively, for derivative contracts like CFDs, daily financing fees – also known as overnight costs or swap fees – will apply if the trader holds the position overnight.
Top broker for dealing costs: IC Markets is renowned for its narrow bid-offer spreads, beating out most of the competition in our tests, with its price generation system aggregating a selection from up to 25 separate price providers. Forex spreads begin at 0.0 pips on the MetaTrader 4 and 5 platforms, and average spreads of 0.1 pips on the EUR/USD (euro vs US dollar) currency pairing.
Trade commissions are also low, ranging from zero on a standard MetaTrader account to $3.50 on a raw spread MetaTrader account. Traders are also safeguarded from monthly inactivity fees, while overnight fees are pretty modest, an important factor for CFD short sellers.
FAQ
What Is Short Selling?
Traders take a ‘short position’ when they believe the value of an asset will fall. They will borrow the security from a counterparty, and sell it on the expectation of buying it back more cheaply (and returning it to the lender).
The difference between the selling price and the repurchase price – excluding trading fees – is the trader’s profit.
Who Is The Counterparty In A Short Sell Trade?
This is typically the broker, although ultimately they are not the true lender of the asset. They act as a financial intermediary between the borrower and the actual asset owner, locating and borrowing the security from a client account.
In this sense, the client (such as a retail investor or institutional investor) is the ultimate lender.
Do Traders Need To Own The Asset To ‘Go Short’?
Not always. In some markets, investors can speculate that an asset’s price will decline using a derivative product like a CFD.
Who Can Short Sell?
Institutional investors like hedge funds are the most active short sellers, though the number of retail traders using this strategy is growing.
According to stock screener MOMO, around 30% of total ‘short interest’ in US stocks was predicted to be held by retail traders in 2023. That was up from 10% in 2015.
What Are The Pros And Cons Of Short Selling?
Going short provides traders with added flexibility. All financial markets experience reversals, so short selling allows individuals to turn a profit when prices drop and not just when they appreciate.
On top of this, shorting can be used as part of a trader’s risk management strategy. ‘Hedging’ is where investors take a short position to limit potential losses when they also ‘go long’ (buy) on the same asset.
At the same time, however, short selling carries its own risks. This is because the security a trader borrows and sells could keep increasing in value over time, resulting in losses that keep on growing.
A rising asset price can also mean the brokerage issues margin calls, requiring the investor to deposit more cash. If the trader fails to do so, the broker may shut out the position before the asset price potentially falls again, thus locking in the individual’s loss.
Article Sources
Escalator Up, Elevator Down: Understanding the New Landscape of Retail Short Selling – MOMO