We found 11 online brokers that are appropriate for Trading Short Selling Investment Platforms.
Many people are not sure whether short selling is halal or haram and are very concerned
Short selling is permitted in Islam under the following conditions:
The investor must have an intention to cover his short position at some point in the future. This is called 'Al-Baraa'. The investor should have sufficient margin available on his short sale to effectively cover the value of what he has sold short.
his means one can cover a short by using cash or long positions in one's portfolio or elsewhere. All transactions must be executed via a Shariah-compliant trading platform/broker or Islamic mutual fund (in which case all securities within said fund are considered owned). No transactions via over-the-counter (OTC) brokers/dealers, this would include bulletin boards and eTrading facilities, even if they are Shariah-compliant (for example, OTCBB securities cannot be sold through a Shariah mutual fund.
Shorting stocks outside ones own portfolio is prohibited and strictly forbidden (haram), regardless of whether there was an intention to cover at some point in the future, this includes engaging in naked short sales One cannot legally sell shares he does not actually own known as naked short selling.
Another condition for any transaction involving borrowing money for trading purposes is that rate of interest charged must not exceed 2% per annum.
Short selling occurs when a trader sells his shares that are not in his possession. The idea behind this practice is to hope that share will decline so that when the rate of share declines, he will buy at a low price and will get a profit from them.
To make the process of short selling more clear to you, let us look at an example of EngroFertilizers stock. If EngroFertilizers stock is trading at 200 rupees per share, the market price should be lower. It should be 100 rupees because it is overvalued.
If at 9:00 p.m. the share of EngroFertilizers is about rupees 200, by 9:30 p.m. it is estimated to decline. The broker could be asked to borrow a share of EngroFertilizers Stock. The broker will let you buy each share of EngroFertilizers Stock but will charge a fee. Althought it was predicted that the price will eventually fall, the EngroFertilizers stock price raised to rupees 250 at 10:00 p.m. which means that there was a loss.
Now the same stock will be at 250 Rupees and will be given back to the broker. The opposite of that example will be for profit. Shorting stock works so smoothly that you do not even realize that you have borrowed the stock from somebody else.
There are two types of positions in a stock. One is a bullish position, and the other is a bearish position. A bullish position is when you buy a stock at a lower rate and hopes that the price of this stock will rise and sells it when the price of this stock rise. Whereas wishing to sell the stock at a higher price and buying the same stock at the lowest price is called short position.
In the years 2007 and 2008, there were global financial problems. During these years, we have seen short-selling falling under great inspection. In this period, short selling was decreased and forbidden in a few countries. In a country like India, You can short any present stocks during trading sessions, but you need to bring them back to their position before the trading day's end. Some Stock is also present under the T segment and T2T (Trade to Trade) segment.
In this segment, single-day trading is not allowed. That is the reason that the delivery of shares in each trade falls under that segment. So when you were selling it. It was not your own. You have to borrow it from another person, and when you are buying back, you are returning the share.
So, according to the Islamic point of view about short selling, many Islamic scholars say it is haram. They had three different cases. The first case is selling the stocks that you have borrowed is the short seller case that you have borrowed stock from your broker and sold it without any ownership possession of that stock is haram.
The second case is the interest (RIBA) case. This was the case when you borrowed stocks from your broker by paying some fees to your broker. That fee is RIBA. RIBA (Interest) is forbidden in Islam under Shari'ah Law (Islamic religious law). But there are still some controversies over this interest fee, whether the fee charged is interest fee or not.
The third case is that short-selling adds no value to the economy and is solely done for selfish purposes (To make a profit!).For instance, When you start a business, you are taking risks that did not exist before. However, there is the anticipation of making the values that can advocate risks you are creating by starting a business. The values are represented by services and goods that you have offered through the business.
So, In my opinion, it is creating irrelevant risk without any anticipation of making values in return.
So yes, short-selling is haram without any doubt in Islam. For Muslim traders, it is best to follow the rules of Shariah in trading - Buying a shariah compliant stock with no margin is acceptable and can be done by Muslims without any worry!
We have conducted extensive research and analysis on over multiple data points on Is Short Selling Haram to present you with a comprehensive guide that can help you find the most suitable Is Short Selling Haram. Below we shortlist what we think are the best Short Selling Investment Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Is Short Selling Haram.
Selecting a reliable and reputable online Short Selling Investment Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Short Selling Investment Platforms more confidently.
Selecting the right online Short Selling Investment Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Short Selling Investment Platforms trading, it's essential to compare the different options available to you. Our Short Selling Investment Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Short Selling Investment Platforms broker that best suits your needs and preferences for Short Selling Investment Platforms. Our Short Selling Investment Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Short Selling Investment Platforms.
Compare Short Selling Investment Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Short Selling Investment Platforms broker, it's crucial to compare several factors to choose the right one for your Short Selling Investment Platforms needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Short Selling Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Short Selling Investment Platforms that accept Short Selling Investment Platforms clients.
Broker |
IC Markets
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Roboforex
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eToro
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XTB
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XM
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Pepperstone
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AvaTrade
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FP Markets
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EasyMarkets
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SpreadEx
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FXPro
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Regulation | Seychelles Financial Services Authority (FSA) (SD018) | RoboForex Lid is regulated by Belize FSC, License No. 000138/7, reg. number 000001272. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (130) | Cyprus Securities and Exchange Commission (CySEC) (079/07) Easy Forex Trading Ltd, Australian Securities and Investments Commission (ASIC) (Easy Markets Pty Ltd 246566), British Virgin Islands Financial Services Commission (BVI) EF Worldwide Ltd (SIBA/L/20/1135), Financial Sector Conduct Authority South Africa (FSA) EF Worldwide (PTY) Ltd (54018), FSC (Financial Services Commission) (SIBA/L/20/1135), FSCA (Financial Sector Conduct Authority) (54018) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | FCA (Financial Conduct Authority) (509956), CySEC (Cyprus Securities and Exchange Commission) (078/07), FSCA (Financial Sector Conduct Authority) (45052), SCB (Securities Commission of The Bahamas) (SIA-F184), FSA (Financial Services Authority of Seychelles) (SD120) |
Min Deposit | 200 | 10 | 50 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 |
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Used By | 200,000+ | 730,000+ | 35,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ |
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Platforms | MT5, MT4, MetaTrader WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), MetaTrader iPhone/iPad, MetaTrader Android Google Play, MetaTrader Mac, cTrader, cTrader Web, cTrader iPhone/iPad, cTrader iMac, cTrader Android Google Play, cTrader Automate, cTrader Copy Trading, TradingView, Virtual Private Server, Trading Servers, MT4 Advanced Trading Tools, IC Insights, Trading Central | MT4, MT5, R Mobile Trader, R StocksTrader, WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), Windows | eToro Trading App, Mobile Apps, iOS (App Store), Android (Google Play), CopyTrading, Web | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | easyMarkets App, Mobile Apps, iOS (App Store), Android (Google Play), Web Platform, TradingView, MT4, MT5 | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT4, MT5, cTrader, FxPro WebTrader, FxPro Mobile Apps, iOS (App Store), Android (Google Play) |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 61% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, AO, BR, HR, GL, IS, IM, JM, FM, MC, NG, SI, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare Short Selling Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Short Selling Investment Platforms for 2025 article further below. You can see it now by clicking here
We have listed top Short Selling Investment Platforms below.
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