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Best brokers for short selling in 2022

Webull Logo
1st place
Webull
TD Ameritrade Logo
2nd place
TD Ameritrade
Charles Schwab Logo
3rd place
Charles Schwab

How did BrokerChooser pick the best brokers for short selling?

  • We checked whether the broker is regulated by a trusted regulator,
  • Compared fees, especially for stocks and options (including spreads, withdrawal fee, commission),
  • Took a close look at margin rates,
  • Checked the dekstop platform,
  • Checked minimum deposit requirements,
  • Opened an account and tested the platform (charting, features, usability) with real money.
Save hours of research!
Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser's unique methodology. Let's jump straight to the results.


Top 5 brokers for short selling in 2022:


  1. Webull is the best broker for short selling real stocks in 2022 - Free stock, ETF and options trading. Fast and easy account opening. Great trading platforms.
  2. TD Ameritrade - Low trading fees (free stock and ETF trading). Superb desktop trading platform. Great customer support.
  3. Charles Schwab - Free stock and ETF trading. Outstanding research. Great customer service.
  4. Interactive Brokers - Low trading fees. Wide range of products. Many great research tools.
  5. Fidelity - Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.

BrokerChooser evaluates 9 key areas for all brokers including fees, safety, ease of account opening, education, and trading platforms. We check more than 500 criteria for each broker and finetune our methodology every year based on our own and our users' experiences. We have more than 100 brokers reviewed on our site and our team of analysts examines more than 50,000 data points overall.

Check out the best brokers in another country

Best brokers for short selling in 2022
Key features of the best brokers for short selling

While many online brokers and trading platforms offer an excellent service, the ones in our toplist go the extra mile.

Best brokers for short selling for December 2022
Broker Margin rate class Stock fee class Minimum deposit Desktop platform Withdrawal fee
Webull Average Low $0 5.0 stars $0
TD Ameritrade High Low $0 4.5 stars $0
Charles Schwab High Low $0 4.0 stars $0
Interactive Brokers Low Low $0 3.8 stars $0
Fidelity High Low $0 4.3 stars $0

Best brokers for short selling in 2022
Trading fees at the best brokers for short selling

How much you have to pay for a trade in spreads, commissions and other trading costs is a key broker selection criteria. We calculated a benchmark fee for the most important stock fees, which you can see in the table below. This is the total of how much you have to pay in spreads, commissions and other costs for a trade in each asset class.

Fees at the top brokers for short selling in December 2022
Webull TD Ameritrade Charles Schwab Interactive Brokers Fidelity
US stock $0.0 $0.0 $0.0 $1.0 $0.0
German stock - - - $3.0 $18.8
UK stock - - - $3.4 $10.2

Commission for a $2,000 position

If you are unsure how brokerage fees work, check out our article on the various fees, charges and costs.

Best brokers for short selling in 2022
Non-trading fees at the top brokers for short selling

Non-trading fees are charges not directly related to a given trade and typically include the account maintenance fee, deposit/withdrawal fees, and the inactivity fee.

Webull TD Ameritrade Charles Schwab Interactive Brokers Fidelity
Account fee No No No No No
Inactivity fee No No No No No
Withdrawal fee $0 $0 $0 $0 $0
Deposit fee $0 $0 $0 $0 $0
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Best brokers for short selling in 2022
What is short selling?

A short sale (or 'shorting') is when you sell a stock you borrowed at the current price, in the hope of buying it back later for less money and pocketing the difference. It is the opposite of taking a 'long' position, i.e. buying a stock, in the hope that its price will increase. In order to do this, you need to have a margin account.

The first step in short selling is borrowing a stock from somebody and selling it immediately at the current price. Eventually you will have to buy the stock in order to give it back to the lender and close the positon. So you are hoping that the future price will be lower than the current price because the difference would be your gain. Who would loan you the stock? Your broker.

As this is a loan, your broker will charge you interest. Remember, the stock is not yours, you just borrow it. You would only short sell a stock if you firmly believe that its price will drop. In this case you hope that you can buy the stock back at that lower price in the future and pocket the difference. As the price of the stock rises, so do the unrealized (or floating) losses on your open position.

What makes a good broker for short selling?

Most importantly, they need to offer fair margin fees. To size them up in this regard, we checked the margin costs of trading real stocks. Second, they should offer fair stock fees. A great desktop platform that makes technical analysis easy also weighed into our ranking. Last, but not least, we prefer brokers with a great overall service quality and score.

Webull Logo

#1 Best brokers for short selling in 2022
Webull

Recommended for investors and traders looking for zero-commission trading and easy platforms

Visit broker

Webull snapshot
Minimum deposit $0
Deposit methods Bank transfer
Withdrawal methods Bank transfer
Read review For a detailed analysis of Webull services, check out our review for 2022
TD Ameritrade Logo

#2 Best brokers for short selling in 2022
TD Ameritrade

Recommended for investors and traders looking for solid research and a well-equipped desktop trading platform

Visit broker

TD Ameritrade snapshot
Minimum deposit $0
Deposit methods Bank transfer
Withdrawal methods Bank transfer
Read review For a detailed analysis of TD Ameritrade services, check out our review for 2022
Charles Schwab Logo

#3 Best brokers for short selling in 2022
Charles Schwab

Recommended for investors and traders looking for solid research, low fees and great customer service

Visit broker

Charles Schwab snapshot
Minimum deposit $0
Deposit methods Bank transfer
Withdrawal methods Bank transfer
Read review For a detailed analysis of Charles Schwab services, check out our review for 2022
Interactive Brokers Logo

#4 Best brokers for short selling in 2022
Interactive Brokers

Recommended for traders looking for broad market access and a professional trading environment

Visit broker

Interactive Brokers snapshot
Minimum deposit $0
Deposit methods Bank transfer
Withdrawal methods Bank transfer
Read review For a detailed analysis of Interactive Brokers services, check out our review for 2022
Fidelity Logo

#5 Best brokers for short selling in 2022
Fidelity

Recommended for investors and traders looking for solid research and great trading platforms

Visit broker

Fidelity snapshot
Minimum deposit $0
Deposit methods Bank transfer, PayPal, Venmo, Apple Pay
Withdrawal methods Bank transfer, PayPal, Venmo, Apple Pay
Read review For a detailed analysis of Fidelity services, check out our review for 2022

Best brokers for short selling in 2022
FAQ

Can short selling be profitable?

Yes, short selling can be profitable and traders may make handsome profits. Nevertheless, short selling real stocks are very risky, especially because these assets are borrowed from your broker in the form of a loan. You need to have a margin account which allows you to invest a much larger amount of money. Short selling is by no means a guarantee for getting rich overnight.

Is short selling good for beginners?

Short selling can be complicated for the first time, so in this sense it is not good for beginners.

Which broker is best for short selling?

These are the top brokers for short selling in your selected country in 2022:

  1. Webull - Free stock, ETF and options trading. Fast and easy account opening. Great trading platforms.
  2. TD Ameritrade - Low trading fees (free stock and ETF trading). Superb desktop trading platform. Great customer support.
  3. Charles Schwab - Free stock and ETF trading. Outstanding research. Great customer service.
  4. Interactive Brokers - Low trading fees. Wide range of products. Many great research tools.
  5. Fidelity - Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.

Want to understand short selling in more detail?

Check out these articles written by our broker and trading experts:

Are these brokers reliable?

Absolutely. You can be sure that none of them is a scam. They are all regulated by at least one top-tier financial authority.

Author of this article

Ádám Nasli

Author of this article

Ádám worked in banking and investment, and holds a professional degree in this field. He is a motivated finance expert, having joined BrokerChooser in 2018. He's also eager to help people find the best investment provider for them, and to make the investment sector as transparent as possible. In his spare time, he loves learning new things, especially data science, algo-trading, programming and trading.

Ádám Nasli

Analyst head

Ádám worked in banking and investment, and holds a professional degree in this field. He is a motivated finance expert, having joined BrokerChooser in 2018. He's also eager to help people find the best investment provider for them, and to make the investment sector as transparent as possible. In his spare time, he loves learning new things, especially data science, algo-trading, programming and trading.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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