Our July 2025 Picks: Best Brokers for Short Selling
Review
Updated
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Short selling is a way for investors to bet against the price of a stock. In other words, if you simply buy shares of a stock, you're generally hoping for the price to go up over time. Short sellers want the opposite to happen.
Not all brokers allow investors to short sell on their platforms, but some of our favorites do. In this article, we'll discuss the best brokers for short selling stocks, and some other things to keep in mind before you get started.
| Broker/Advisor | Best For | Commissions | Learn More | |
|---|---|---|---|---|
 2025 Award Winner
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Low fees |
Commission:
Commission-free; other fees apply |
Learn More for E*TRADE from Morgan Stanley
On E*TRADE's Secure Website.
Special Offer
Open and fund a brokerage account and get up to $1,000. Terms apply. Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account. Please read full terms and conditions on our website. |
2025 Award Winner
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Advanced trading tools |
Commission:
$0 per trade |
Learn More for Webull
On Webull's Secure Website. |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Low margin rates |
Commission:
As low as $0 stock trades |
Learn More for Interactive Brokers
On Interactive Brokers' Secure Website. |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Full-service brokerage |
Commission:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
|
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Best For:
Research tools |
Commission:
$0 commission for online U.S. stock and ETFs*. No account fees****. |
On E*TRADE's Secure Website.
2025 Award Winner
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,000. Terms apply.
On E*TRADE's Secure Website.
Why E*TRADE from Morgan Stanley made the list: E*TRADE from Morgan Stanley was one of the pioneers in the online brokerage industry, and offers a full range of account types, investment products, and strategies -- including short selling. E*TRADE from Morgan Stanley offers a powerful trading platform in both desktop and mobile forms, tons of trading tools, third-party stock research, and much more.
One potential drawback to using E*TRADE from Morgan Stanley is that it has relatively high margin rates, which could be an issue for short sellers, since selling a stock short uses margin.
On Webull's Secure Website.
2025 Award Winner
Webull is a standout mobile investing app. You can access advanced trading tools on desktop and mobile. Basic trades are commission-free, so it's competitive with similar apps. The mobile app offers Lite mode, a simpler interface for beginner investors. Consider opening a Webull account for its advanced toolset, more powerful than its closest competitors'.
$0 per trade
$0
On Webull's Secure Website.
Why Webull made the list: Webull is one of the only mobile-first brokers that allows traders to sell stocks short. Webull is known for its low-fee and app-based investment platform that is built for sophisticated trading as opposed to just casual trading and long-term investing.
For short sellers, Webull offers some of the lowest margin rates in the industry, and offers an extensive library of educational resources that could come in handy.
On Interactive Brokers' Secure Website.
A great low-cost option for small trade volume. While the interface isn't as clean or modern as that of other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin.
As low as $0 stock trades
$0
On Interactive Brokers' Secure Website.
Why Interactive Brokers made the list: Interactive Brokers is best suited for experienced traders and sophisticated investors, and its feature-packed platform makes it an excellent choice for short sellers. It offers tons of account types and investment products, reasonable fees, and some of the lowest margin rates of any broker on our radar.
Its trading platforms are fantastic and full of valuable tools, such as stock screeners and options analysis tools, and its fully customizable interface could be especially appealing to short sellers.
Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
Why Charles Schwab made the list: Charles Schwab was one of the first discount brokerages in the world, and has evolved into one of the largest brokerage platforms of all. It offers a ton of investment choices and trading tools, and now has the top-rated thinkorswim trading platform.
Charles Schwab's margin rates aren't as low as some of the other brokers on this list, but the platform's other features can help make up for it.
Fidelity’s brokerage account offers free tools and $0 commission for online U.S. stock and ETF trades.* Investors can access a wide range of options, from stocks and mutual funds to crypto. Get an all-in-one view of live data and charts with the Fidelity Trading Dashboard, set up recurring investments, and enjoy 24/7 support from investing professionals. You can also potentially earn more on uninvested cash with a money market fund.**
$0 commission for online U.S. stock and ETFs*. No account fees****.
$0****
Why Fidelity made the list: One of the largest and longest-running brokers in the industry, Fidelity allows for short selling on its platform. It offers clients independent research reports from more than 20 different firms, as well as excellent trading platforms for all experience levels.
One potential drawback is that Fidelity's margin rates are a bit on the high end, so keep this in mind if you tend to keep short positions open for long periods.
The obvious drawback to short selling is that there is the potential for unlimited loss if the trade doesn't go your way. If you short a stock at $100, it could rise to several times its current price. In fact, when something similar happened with a few so-called "meme stocks" in 2020 and 2021, the losses were so bad that several hedge funds got wiped out completely.
Beyond that, there are some pros and cons to be aware of before you start short selling stocks.
Before you get started with short selling, two important things need to happen. First, you need to understand exactly what you're getting into, especially the risks if a short sale doesn't work out favorably. And second, you'll need an account with a broker that allows clients to short-sell stocks. Here are some basic steps to follow:
The short version (pun intended) is that short selling allows investors to profit when a stock's price goes down.
To sell a stock short means to borrow shares you don't own and sell them on the open market. The goal is for the stock's price to go down, at which point you would buy the shares back cheaper to return to your broker. This is also known as "covering" your short sale.
Here's a simplified example. Let's say a stock is trading for $100 per share and you believe it is likely to go down in the short term. You borrow 100 shares from your broker, and sell them for a total of $10,000.
Over the next couple of weeks, the stock's price falls to $90. You buy back the 100 shares you borrowed for a total of $9,000. You keep the $1,000 difference as your profit, and give the shares back to your broker. Of course, this is an example of short selling working out well. In the real world, this isn't always the case.
Not all brokers allow short selling on their platforms, and that's especially true with many of the newer, app-based investment platforms.
Short selling isn't right for everyone and is best suited for experienced investors. But if you're looking to start short selling stocks, picking the right broker can make a big difference.
Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios from Morgan Stanley, E*TRADE from Morgan Stanley, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Robo Investing, Stash, Stockpile, tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.
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E*TRADE services are available just to U.S. residents.
Interactive Brokers disclosure:
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
Fidelity disclosure
Investing involves risk, including risk of loss
* - $0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at (https://www.fidelity.com/trading/commissions-margin-rates). Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read (https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document). Supporting documentation for any claims, if applicable, will be furnished upon request.
****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See (https://www.fidelity.com/trading/commissions-margin-rates) for further details.
