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.
Quick Look at Best Brokers for Short Selling:
- Best Overall for Professional Short Sellers: Interactive Brokers
- Best for Hard-to-Borrow Inventory Access: CenterPoint Securities
- Best for Professional Day Traders: Cobra Trading
- Best for Newer Short Sellers: TradeZero
- Best for Budget-Conscious Short Sellers: Moomoo
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.
Best Brokers for Short Selling 2025
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.
Best Overall for Professional Short Sellers: Interactive Brokers
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
Interactive Brokers (IBKR) remains the gold standard for professional short sellers. With a starting margin rate of 5.83% APR (as of May 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 May 2025): Starting at 5.83% (tiered)
Best for Hard-to-Borrow Inventory Access: CenterPoint Securities
- Best For:Momentum tradersVIEW PROS & CONS:securely through Centerpoint Securities's website
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: 6%
Best for Professional Day Traders: Cobra Trading
- Best For:Short Selling over $25KVIEW PROS & CONS:securely through Cobra Trading's website
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%
Best for Newer Short Sellers: TradeZero
- Best For:Global Broker for Short SellingVIEW PROS & CONS:securely through TradeZero's website
TradeZero has become a go-to broker for new short sellers who don’t want high minimums to get started. With a $2,500 minimum balance requirement, it lowers the barrier to entry without sacrificing too much on the tools and inventory you need to actually be competitive. For traders looking to short small caps, mid caps or hard-to-borrow names, TradeZero offers both free and paid locate services, making it easier to find shares when opportunities pop up. While its borrow list isn’t quite as deep as powerhouses like CenterPoint or Cobra, it’s still one of the most accessible options for active retail traders who want real short selling functionality without the institutional price tag.
TradeZero Pro runs $59 per month and opens up more sophisticated capabilities. With Pro, you get real-time locate functionality, advanced order routing and faster execution tools that are essential when trading volatile setups.
Minimum balance to short: $2,500
Short locate tools: Yes, Short Locator and Single Use Locates
Margin rate: 9% annually
Best for Budget-Conscious Short Sellers: Moomoo
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.
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.
About AJ Fabino
AJ Fabino is the Investing & Cryptocurrency Editor at Benzinga, overseeing a range of financial content, including stocks, ETFs, options, mutual funds, futures, IPOs, bonds, and cryptocurrency. With extensive experience in financial journalism and content strategy, AJ is dedicated to delivering engaging, insightful, and timely news that empowers readers to make informed investment decisions.
