The advent of leveraged trading has simplified this process to the point where shorting a stock is as simple as clicking the ‘sell’ button for the desired stock on the online platform. In this article, Yenmachvang will provide you with the 7 best brokers for short-selling stocks in 2021 that will suit your needs.
Top 7 Brokers for Short Selling
It is difficult to choose one of the 7 best brokers for short-selling stocks. Because it depends on your needs, goals, and preferences. Each short-selling broker has stock trading terms, commissions, downtime fees, customer service, trading tools, market data, platform usability, and more. Short sellers have different advantages and disadvantages. Here is a list of 7 best brokers for short selling stocks 2021:
1. Cobra Trading
One of the first brokers in our list of 7 best brokers for short-selling stocks 2021 we mentioned is Cobra Trading. Chadd having founded Cobra Trading in 2003. As a day trader with a minimum account size of $27,000.
For day traders, even a tick is important. That’s why Cobra Trading offers instant support and premium trading tools for quick trade execution. By accessing the stock exchange directly, customer orders will be executed.
They provide clients with internal trading platforms such as Cobra TraerPro, DAS Trader Pro, Sterling Trader Pro, RealTick Express, and RealTick PRO. Traders use them to directly locate hard-to-borrow stocks in addition to an extensive list of easy-to-borrow stocks.
When you access the platform demo, you will get a 25% commission discount and free access to the trading platform for 1 month. The lowest commission is $0.002 per share.
Cobra trading is the only broker mentioned that does not accept payment for order flow from places like the Citadel. Retail brokers sell your order process and in return receive payment from a third party. Also, when you contact customer support, you will have to wait 30 minutes, 1 hour, or even longer. 0 roses often have their downsides. Don’t worry, if that’s what you’re worried about, let’s explore further in our list of 7 best brokers for short-selling stocks.
TradeStation is a great experience you shouldn’t miss. Because you can trade stocks and exchange money commission-free. They execute your transactions, automatically route orders, and confirm transactions quickly and conveniently.
TradeStation is particularly appealing today traders looking for a good balance between no commissions and high-end technology. Here, users can create custom trading strategies and indicators for the system to execute.
TradeStation has multiple account types for trading stocks, options, futures, ETFs, and cryptocurrencies. It is suitable for the needs and understanding level of beginners. This gives them access to in-depth educational tools, advanced stock screeners, and more.
When you want access to the premium TradeStation desktop software, the minimum account requirement is $2000. They charge a $0 commission on the stock and most of its ETFs. For accounts under $50,000, margin trading rates start at 9.50%. For accounts over 2 million USD, the margin trading ratio is reduced to 3.5%.
A lesser-known but highly promising brokerage firm in the future is Firstrade. The account minimum and commission is $0. Applicable on stocks, ETFs, mutual funds, and options.
Firstrade offers good research tools, advanced charts, and convenient visualization of stock prices. Furthermore, they provide loads of fundamental data and equity ratings. However, Firstrade does not yet support FX and futures contracts.
Not only physical, but users can also enjoy a rich set of educational materials and tutorials related to trading stocks, options, ETFs, fixed income, and more.
4. TD Ameritrade
The fourth best broker for short-selling stocks mentioned is TD Ameritrade. With over 40 years of experience and one of the market leaders in the industry. Now, TD Ameritrade has more than 11 million customers using and opening their accounts.
The fixed fee for stock trading is 0.0$. The options fixed fee is $0.0 plus $0.75 per contract. They support trading 24/5.
The minimum margin requirement is set at $2,000. The margin ratio is set at 2:1. You will then be charged a flat fee of $6.95 per share trade. The margin interest rate is 9.5%. According to the SEC sample day trading rules, you need to have at least $25,000 in your account to execute trades more than 3 days within 5 consecutive business days.
5. Charles Schwab
Charles Schwab is one of the top 7 best brokers for short-selling stocks that offers robotics investing with no commissions or consulting fees. Customers can talk to Charles Schwab staff about personal finance at local branches. Especially, Having more than 40 years of business and more than 40 billion market capitalization
You can use Charles Schwab as a bank account, retirement account or consult the investment advice of professional advisors. What’s more, Schwab offers its clients a great experience with high-tech trading tools like StreetSmart Edge. There are also many investment options in stocks, ETFs, mutual funds, options, and more.
StreetSmart manages complex charts and trading strategies. Today, Web Interfaces are the perfect complement to your daily business routines. Especially mobile apps.
TradeZero is the preferred choice of many short-sellers and stock market day traders. It was founded in 2015 and is new in the brokerage industry.
TradeZero operates two organizations – TradeZero International (based in the Bahamas) and TradeZero America. As their name suggests, TradeZero International serves clients worldwide, TradeZero America targets US traders. Both service providers offer similar services, with the main difference being in pricing policy. The minimum account requirement for US traders is $2500 and for global users, it’s $500.
When users in the United States buy securities over 1 dollar, the cost is zero. It also applies to trading on NASDAQ, NYSE, or AMEX. If fees apply, they will be set from $0.003 to $0.005 per share and a flat rate of $0.99 for smaller orders.
TradeZero supports multiple markets on stocks, ETFs, and options. Margin account holders can take advantage of up to 6:1 intraday equity leverage and 2:1 overnight positions. However, zero platform costs $79 and the ZeroWeb platform. is $59 with tier 2 market data.
Webull is a commission-free broker for stocks and options. It offers a great user interface and many unique functions. According to research, the biggest competitor to the Robinhood app is Webull – the best investment app today.
This is an app that can be used on mobile phones, tablets, or personal computers. And it includes a paper trading account. When you sign up for an account, you can get shares up to $350. Webull cung cấp đầu tư miễn phí hoa hồng cho hơn 5.000 cổ phiếu, ETF, quyền chọn và ADR
Today, the desktop version has made more progress, but Webull’s main focus remains on mobile trading.
Users do not have to pay for the platforms. It does not require a minimum account so traders can use it as a paper trading account.
Margin trading through a Webull brokerage account has margin rates ranging from 6.99% to 3.99% depending on the balance owed. Short selling fees are charged daily depending on market conditions.
Best Broker for Short Selling Summary
Thanks to an online discount brokerage service, anyone with an internet connection and a bank account can buy and sell stocks within the first week. However, shorting stocks is not for everyone. It is not suitable for you if you are a beginner as the downside risk can quickly wipe out your open market position. Furthermore, short-selling stocks can become a dangerous instrument if not used judiciously when trading ceiling calls, put or margin options.
To avoid the pitfalls of short selling and find a reliable broker for short orders. Choose a company that can walk you through the processes and has reasonable terms. From start-up free Robo advisors to industry-recognized leaders with cutting-edge platforms, there’s always the best choice for all types of traders.
In this article, Yenmachvang introduced you to the 7 best brokers for short-selling stocks 2021. We hope the above guidelines can help you choose a short-selling broker that meets your needs.