Short selling requires a brokerage that can reliably locate shares, offers transparent borrowing costs, and provides the margin infrastructure to support the strategy. The five platforms below are evaluated on share availability for hard-to-borrow names, margin interest rates, locate fee transparency, and the short-selling tools built into each platform.
| Platform | Margin Rate (approx.) | Best For | Rating |
|---|---|---|---|
| Interactive Brokers | 5.83-6.83% | Serious short sellers | 4.8/5 |
| Tastytrade | ~7% | Options + short combo | 4.5/5 |
| Moomoo | Varies | Easy-to-borrow names | 4.4/5 |
| TD Ameritrade (Schwab) | ~8-9% | Research-based shorts | 4.3/5 |
| Webull | Varies | Beginner short exposure | 4.1/5 |
Interactive Brokers - Best Overall Broker for Short Selling
Interactive Brokers consistently offers the largest pool of shortable shares, including hard-to-borrow names that other brokers cannot locate. Their Stock Yield Enhancement Program allows clients to lend out shares, and the same infrastructure gives short sellers access to a deep locate inventory. Margin interest rates are among the lowest for retail brokers and scale down further at higher balance tiers. The TWS platform displays borrow rates directly in the trading window before order entry, so short sellers always know the carrying cost upfront. For anyone who shorts consistently, IBKR is the most capable platform available to retail traders.
Search for Interactive Brokers short selling guide on Amazon
Tastytrade - Best for Combining Short Selling with Options Strategies
Tastytrade allows short selling alongside its options capabilities, making it a good fit for traders who combine short stock positions with options overlays like protective calls or put spreads. The platform shows implied volatility and borrow rates together, which helps traders evaluate whether a short or a put purchase is more cost-efficient for a given bearish thesis. The capped commission structure reduces friction for active traders. Share availability is more limited than IBKR for hard-to-borrow names, but for liquid names with reasonable borrow rates, Tastytrade executes well.
Search for Tastytrade short selling strategies on Amazon
Moomoo - Best for Commission-Free Short Selling on Easy-to-Borrow Names
Moomoo offers commission-free trades and supports short selling on a range of liquid, easy-to-borrow stocks. The platform provides a short interest indicator directly on stock detail pages, which helps traders quickly assess how heavily a name is already shorted before entering a position. Borrow rates for easy-to-borrow names are competitive. The mobile-first interface is clean and accessible for traders newer to short selling. For stocks with high short interest or restricted borrow, availability on Moomoo is less reliable than on IBKR, which limits its usefulness for more complex short strategies.
Search for Moomoo trading platform guide on Amazon
TD Ameritrade (Now Schwab) - Best for Research-Driven Short Sellers
TD Ameritrade’s thinkorswim platform, now accessible through Charles Schwab accounts following the merger, provides an extensive research suite for traders who base short decisions on fundamental or technical analysis. The platform integrates short interest data and days-to-cover metrics alongside standard charting tools. Margin rates are higher than IBKR but the research depth and thinkorswim’s scanning tools for identifying overvalued names make it a strong analytical environment. Most major liquid stocks are available to short, though hard-to-borrow inventory is more limited than IBKR.
Search for thinkorswim short selling techniques on Amazon
Webull - Best Entry-Level Platform for Short Selling Basics
Webull supports short selling on eligible stocks and offers zero-commission trades, which lowers the cost for traders learning the mechanics. The platform displays short interest data and short float percentage on stock pages, giving beginners visibility into borrow demand before trading. Margin rates are competitive for lower balance accounts. Borrow availability for hard-to-borrow names is limited compared to IBKR or even Schwab, so Webull works best for shorting widely traded, liquid stocks rather than niche or highly shorted names. Paper trading mode supports short selling practice without real capital at risk.
Search for Webull short selling beginner guide on Amazon
How to Choose a Broker for Short Selling
Borrow availability is the most important factor if you plan to short hard-to-borrow names. For those trades, Interactive Brokers has no serious competitor at the retail level. For liquid large-cap shorts where availability is not a concern, focus on margin interest rates and commission costs. Always check the displayed borrow rate before entering a short position, as high fees on restricted shares can eliminate a trade’s profitability quickly. Confirm the platform shows borrow costs in the order ticket, not just after execution.
For related reading, see best companies to sell covered calls and best companies to work for in the US. Review our product evaluation process at /methodology.
Frequently asked questions
What does it mean to short a stock?+
Short selling involves borrowing shares from a broker and selling them at the current price, with the intention of buying them back later at a lower price and returning them. The profit or loss is the difference between the selling price and the repurchase price. Short sellers profit when the stock falls but face unlimited theoretical loss if the price rises instead.
What fees should I watch for when short selling?+
The main costs in short selling are margin interest on the borrowed position, hard-to-borrow fees (locate fees) for shares in high demand, and standard trade commissions. Hard-to-borrow rates can range from under 1% to over 100% annualized for heavily shorted stocks. Always check the borrow rate before entering a short position, as these costs can significantly affect the trade's profitability.