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The post Best Brokers for Short Selling in 2025 by AJ Fabino appeared first on Benzinga. Visit Benzinga to get more great content like this.
Short selling is a sophisticated trading strategy that demands speed, precision and real access to hard-to-borrow shares. Whether you’re hedging or speculating, not all brokers are equipped to support active short sellers properly. We evaluated brokers based on real locate tools, margin transparency, borrow inventory and execution quality.
How We Chose the Best Short Selling Brokers
Our evaluation focused on brokers that meet the real-world demands of tactical short sellers, not casual investors. Selection criteria included:
- Locate tools: Availability of built-in or external locate services for hard-to-borrow shares, including free or paid locate functionality.
- Inventory visibility: Brokers offering real-time borrow inventory updates.
- Margin requirements: Transparent margin rates and leverage flexibility.
- Execution quality: Access to advanced order types, fast routing and minimal slippage.
- Regulatory considerations: Platforms adhering to SEC regulations, including PDT (Pattern Day Trader) rules and Short Sale Rule (SSR) triggers.
- Fee transparency: Full disclosure of commission structures, locate fees and borrow costs.
Sources for verification include broker SEC filings, official rate sheets and platform documentation.
5 Best Brokers for Short Selling
Short selling isn’t just about betting against stocks, it’s about speed, access to inventory and controlling costs, which means choosing the right broker is critical. Here are some of the top options.
1. Best Broker for Short Selling: TradeZero
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TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
Best For
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
TradeZero’s trading tools — intentionally built for short sellers, providing active traders bi-directional trading experience. A five-time winner of Best Broker for Short Selling at the Benzinga Fintech Awards, it’s known for its patented locator system, sourcing shares from more than 14 liquidity providers including TZ Clear LLC.
Traders can choose from Single Use Locates or Pre-Borrows, while the locates credit-back program lets users possibly recoup up to 30% of fees on unused locates. Platforms like ZeroPro and ZeroMobile provide real-time short data across devices. Order routing varies: TradeZero America and TradeZero International clients may place orders using the smart router or by directing trades through multiple routing options and order types, while TradeZero Canada clients trade through smart routing only.
Commission-free trading is available on NYSE, AMEX and NASDAQ stocks above $1 from 7 AM–8 PM ET.
Minimum balance to short: $2500 for TradeZero America $500 for TradeZero Canada and TradeZero International
Short locate tools: Yes, with patented locates system, Single Use Locates and Pre-Borrows
Margin rate: Variable, with up to 6x leverage available
Short locate tools: Yes, with patented locates system, Single Use Locates and Pre-Borrows
International: Up to 6x intraday and up to 2x post-intraday
Canada: Up to 3:1
U.S.: Up to 4:1 intraday and 2:1 overnight on qualified stocks with a balance of $25,000 or more
Special offer for Benzinga readers: 1% back on your first deposit (up to $5,000), 5% off locates for three months, and three months free on ZeroPro and ZeroWeb.
2. Best for Professional Short Sellers: Interactive Brokers
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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Interactive Brokers (IBKR) remains the gold standard for professional short sellers. With a starting margin rate of 5.58% APR (as of October 2025 per IBKR’s public rate schedule) and advanced HTB (hard-to-borrow) tools, IBKR provides elite-level access to global equity markets.
IBKR offers integrated locate services inside Trader Workstation (TWS), displaying short availability in real-time. It also supports fully customizable order types, including conditional stops and advanced routing which are critical for those navigating volatile short setups.
The platform complexity is a steep climb for new traders. IBKR is built for sophisticated investors who value speed, transparency and access to hundreds of global markets.
Minimum balance to short: $2,000
Short locate tools: Yes, free and paid HTB services
Margin rate (as of October 2025): Starting at 5.58% (tiered)
3. Best for Hard-to-Borrow Inventory Access: CenterPoint Securities
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CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
Best For
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
If you specialize in shorting small-caps or ultra-low float stocks, CenterPoint Securities is built for you. CenterPoint has a deep hard-to-borrow list with over 8,000 securities and in-house locate services capable of securing shares others can’t touch.
CenterPoint caters to active traders with volume incentives and fast direct market routing. The platform requires a $30,000 minimum deposit and you can expect platform fees such as $120/month for CenterPoint Pro.
Minimum balance to short: $30,000
Short locate tools: Yes, paid HTB locates available
Margin rate: 5.75%
4. Best for Professional Day Traders: Cobra Trading
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Cobra Trading is a direct access broker focused on access to short opportunities and order execution. Cobra has multiple short locate sources, giving traders access to the best short opportunities in the market. Cobra Trading also specializes in offering comprehensive, responsive customer service throughout the trading day. We recommend Cobra Trading to high-volume traders and short sellers.
Best For
- Short selling
- Market access
- Ease of use
- Very Competitive Commissions and Affordable Fees
- Heavy Discounts for Active Traders
- Access to numerous and deep Short Locate Inventories
- Multiple Clearing Relationships to support customized trading setups
- Offers multiple Trading Platforms
- No Overnight multipliers charged on Overnight Borrows
- 30+ Order Routing Venues with Fast Executions
- Direct Market Access, Algo and Smart Routes
- Automated Trading through FIX DMA and API Services
- Live Support, no Phone Queues & Online Chat Available.
- All Trade Support are in-house Licensed Brokers
- No trading under 25K
- Not a self-clearing firm
Cobra Trading is another serious player in the short selling space. Both DASTrader Pro and Sterling Trader Pro offer embedded locate monitors, allowing real-time short locates with minimal delay.
Cobra’s pricing is very competitive for active traders, with fees starting at $0.0015 per share if you move enough volume. As for initial deposit, you’ll need $27,000 to $30,000 to open an account depending on location. Cobra is unapologetically aimed at pros who prioritize speed and market access over beginner-friendly UX.
Minimum balance to short: $27,000 for U.S. residents, $30,000 for non-US residents
Short locate tools: Yes, integrated into DASTrader and Sterling
Margin rate: 8%
5. Best for Budget-Conscious Short Sellers: Moomoo
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Investing is a long-term journey, and moomoo can help guide investors of all levels every step of the way. Utilized by over 21 million users worldwide – including in the US, Singapore, Australia, Japan, Malaysia and Canada – moomoo is an investment and trading platform that empowers investors with pro-grade, easy-to-use tools, data and insights.
moomoo provides advanced charting tools, technical analytics and Level 2 data for funded accounts, so investors have the resources to make more informed investment decisions. Users can access educational materials and interactive events, as well as share and learn through the inline community.
With a low-cost, competitive fee structure, moomoo can work for all investors.
Best For
- Novices
- Intermediate and advanced traders
- Active traders
- Equity and index options trading
- Commission free trading for US options, stocks and ETFs and 6.8% margin rate
- Wealth of free options tools and features, including customizable options chain, options calculator, unusual options activity, implied volatility analysis, 13 options strategies and 0 days to expiration (0DTE) options by volume
- Free Level 2 data for funded accounts
- Advanced charting tools with 100+ indicators, 37+ drawing tools and 20 candle patterns
- No minimum deposit to open an account
- 24/7 online chat support
- 5.1% APY in Cash Sweep program for new and qualified users
- Does not support crypto
- Does not support retirement accounts or mutual funds
Moomoo offers a cost-effective entry point for traders looking to short stocks without paying high commissions. While the platform does not charge direct commissions for short sales, traders should be aware that the margin rate stands at 6.8%. Moomoo supports a wide range of U.S. equities and provides extended trading hours, making it accessible for traders who value flexibility.
One of moomoo’s strongest advantages is transparency. The platform displays a stock’s initial margin requirement, maintenance margin requirement and cost to borrow upfront before a trader places a short sale. Although moomoo does not offer a traditional locate tool, it does provide hard-to-borrow (HTB) visibility, which helps users assess the feasibility of shorting specific stocks ahead of time.
Minimum balance to short: $2,000
Short locate tools: The moomoo trading app provides short sell analysis
Margin rate: 6.8%
Smarter Short Selling
Short selling demands tools, transparency and serious brokers. If you’re a professional or active trader, Interactive Brokers, CenterPoint Securities and Cobra Trading dominate based on execution quality and inventory access. If you’re newer but ready to practice responsibly, TradeZero and moomoo offer accessible, budget-friendly entries into short selling. Shorting magnifies risk, always factor in locate costs, margin requirements and platform fees before executing trades.
This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.
Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.
Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.
Best For
- Price earnings growth valuations
- Easily evaluate investment opportunities
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
Best For
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
Guardian Trading, a division of Velocity Clearing (“Guardian”) is a brokerage designed for active traders seeking cost savings, high-performance tools, comprehensive services and proactive client support to enhance their trading performance.. The platform prioritizes speed, control and cost efficiency for active and experienced traders by offering real-time trading with access to short locates and overnight borrows , , enabling them to maximize their trading potential. Guardian trading is a sponsored access brokerage, meaning that when you buy, sell or execute trades on the platform, you are utilizing Guardian to choose which exchange or venue where you want to execute your trades. The platform offers much flexibility, facilitating seamless trading, short-selling, overnight borrowing and more. While you might have a lot of brokerage options depending on your trading strategy, Guardian Trading’s comprehensive suite of services makes it a strong choice. Its proprietary stock locate system, cutting-edge clearing procedures, execution platforms and competitive securities lending programs make the broker a one-stop shop for traders.
Guardian Trading offers a full suite of trading solutions and services for active traders in options and equities. Read on for a comprehensive review of this firm including its benefits, core service offerings and the potential risks associated with its usage.
Best For
- Day traders, scalpers and active swing traders seeking a reputable brokerage offering low-latency execution, advanced order types and real-time data for rapid and precise trading decisions to optimize their strategies
- Short-sellers seeking market access with robust proprietary stock location systems and comprehensive securities lending services to facilitate short-selling
- Seasoned and experienced traders and investors seeking complete control over their trading strategies and access to robust trading analytics
- High-frequency traders and momentum traders
- In-house, high-tech clearing
- Access to short-selling inventories
- Competitive and affordable fees and commissions
- Robust and execution platforms
- Powerful stock location system and lending offerings for overnight borrows
- 30+ order routing options, including algo and dark pool routes, for improved execution
- Facilitate API connections for automated and customized trading strategies
- Discounts available for active and professional traders
- Efficient and responsive customer support via LiveChat and phone
- Institutional-grade technical infrastructure and trading tools
- No educational resources. The platform can be challenging for traders who require guidance or hand-holding
- Beginner or intermediate traders may need steeper learning curves to understand the market mechanics, trading strategies and the use of advanced trading tools
- The applicable fees and commissions can quickly add up for frequent traders
TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
Best For
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
Cobra Trading is a direct access broker focused on access to short opportunities and order execution. Cobra has multiple short locate sources, giving traders access to the best short opportunities in the market. Cobra Trading also specializes in offering comprehensive, responsive customer service throughout the trading day. We recommend Cobra Trading to high-volume traders and short sellers.
Best For
- Short selling
- Market access
- Ease of use
- Very Competitive Commissions and Affordable Fees
- Heavy Discounts for Active Traders
- Access to numerous and deep Short Locate Inventories
- Multiple Clearing Relationships to support customized trading setups
- Offers multiple Trading Platforms
- No Overnight multipliers charged on Overnight Borrows
- 30+ Order Routing Venues with Fast Executions
- Direct Market Access, Algo and Smart Routes
- Automated Trading through FIX DMA and API Services
- Live Support, no Phone Queues & Online Chat Available.
- All Trade Support are in-house Licensed Brokers
- No trading under 25K
- Not a self-clearing firm
Frequently Asked Questions
Are there risks of short selling?
Yes, short selling carries substantial risk. If the price of the stock you’re shorting rises instead of falls, you’ll be forced to buy it back at a higher price, locking in a loss. Since a stock’s price can theoretically rise indefinitely, potential losses on a short sale are unlimited.
What is the role of brokers in short selling?
Brokers play a crucial role by providing access to shares available for shorting and offering the tools to locate hard-to-borrow stocks. They manage the borrowing process, enforce margin requirements and charge fees for borrowing shares and using leverage.
How do I choose the right broker for short selling?
Choosing the right broker depends on your experience level and needs. Professional short sellers often prioritize brokers like Interactive Brokers, CenterPoint Securities and Cobra Trading for their deep inventory and execution speed. Newer or budget-focused traders might lean toward platforms like TradeZero and moomoo, which lower the cost of entry while still offering basic short-selling tools.
The post Best Brokers for Short Selling in 2025 by AJ Fabino appeared first on Benzinga. Visit Benzinga to get more great content like this.
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