We found 11 online brokers that are appropriate for Trading Shorting A Stock Investment Platforms.
There are a variety of actions that can be done within financial markets. One of the most popular actions is to buy a stock low and sell high. However, you can also go against the market and go short. Going short means that you speculate that the market will go down, which can be a useful tool in times of crises and economic turmoil.
In short selling, you first borrow a security from your broker. You then cash that security at the current price. When the price of the security falls, you buy the security at the new lower price. The security is then returned to your broker to pay off your borrowing.
It is mandatory that for this activity to be profitable, the price action needs to go down and the stock needs to lose value from the moment that you borrow and return your shares.
To illustrate this point further, the following is a real case study. Imagine that you borrow 5 stocks of security for a value of £500. The price of each share is £100. You then cash out this position and you have £500. Then the price falls and the new price for the security is £90. At this point, you buy 5 new shares at £450. You then return these 5 shares to your broker. We can see that you made £50 profit from this activity as you cashed out at £500 and paid back £450.
Usually, speculators use short selling to hedge against market corrections. You speculate on short-term problems and possible misfortunes. For example, the COVID-19 pandemic offered a good opportunity to go short as the whole market went down. Since the market correction is for short periods, it should be noted that short selling is a short-term strategy.
Short-selling involves borrowing security. Depending on the nature of the security, this step can be easy or difficult. Generally, the harder it is to get security access, the more fees you will pay.
However, it is important to note that there might be fees associated with dividends. Since you borrow shares, those shares might have a dividend depending on the timing. The idea is that if you the hold it long enough when you return the stock, it may have gone through the dividend date and you will have to return dividends to your broker too. Therefore, the transaction fees and the payable dividend may eat away your profits.
Short selling is not good for a long-term strategy. The market tends to go up over long periods. This is the first risk associated with short selling. Shorting is the exact opposite of going long. This means that when you go short, there is an unlimited risk but limited profit. With short selling, if the stock price goes to zero, you get to keep all of the money that you invested.
Conversely, if the price goes up, there is room for unlimited losses. In the case that the price exceeds what you paid for at the point of purchase, you will now have to return the borrowed shares at a price higher than what you borrowed them, thus incurring a loss. Therefore, if there is high volatility and the price shoots up, you are susceptible to unlimited losses.
The risk of volatility can severely hurt you. This is because even if you borrow the stock, it is not safe to assume that you will be able to sell it at the desired price or repurchase it at a favourable price. Each time that you sell and buy, the rules of supply and demand are in place. Depending on the market sentiment, it may be difficult to buy or sell a share at the desired price level.
Short selling has a wilder emotional rollercoaster compared to other forms of speculation. If everybody is trying to close their positions, you might run onto a short squeeze. This can severely hurt your capital. This was recently experienced by GameStop stocks, where everybody was shorting it which caused prices to skyrocket.
There is another way to protect your portfolio in times of market corrections. You can buy put options. Put options give you the right to sell a security at a preset price within a specified time frame. You set the put option in such a way that it will give you a profit in case the stock goes lower than the value that it currently has. However, you are not obligated to do so if the market goes in the opposite direction. If things go wrong, you lose the initial capital invested in the put options. If things go as planned, you can execute your put options rights.
Shorting a stock is a risky strategy that can incur unlimited losses but limited profits. Therefore, you must be knowledgeable about the market forces and the direction of the market. With shorting, you are speculating on a short-term market correction, so your entry and exit are crucial to the success of such a strategy. Ultimately, traders should always watch out for your position and beware of high volatility.
We've collected thousands of datapoints and written a guide to help you find the best Shorting a Stock for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best Shorting A Stock Investment Platforms below.
There are a number of important factors to consider when picking an online Shorting A Stock Investment Platforms trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Shorting A Stock Investment Platforms.
Compare Shorting A Stock Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Shorting A Stock Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Shorting A Stock Investment Platforms that accept Shorting A Stock Investment Platforms clients
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eToro
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IC Markets
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Roboforex
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AvaTrade
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XTB
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XM
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Pepperstone
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FP Markets
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Trading212
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Plus500
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EasyMarkets
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Cyprus Securities and Exchange Commission (CySEC) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | 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), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546, Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039), Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products (License No. CMS100648-1), PLUS500AU (PTY) LTD is regulated by the FSCA (Financial Sector Conduct Authority), Plus500 adheres to MiFID rules | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) |
Min Deposit | 10 | 200 | 1 | 100 | No minimum deposit | 5 | 200 | 100 | 1 | 100 | 100 |
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Used By | 27,000,000+ | 180,000+ | 10,000+ | 300,000+ | 250,000+ | 3,500,000+ | 89,000+ | 10,000+ | 15,000,000+ | 15,500+ | 142,500+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps |
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Learn More |
Sign
Up with etoro |
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Up with avatrade |
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Up with xtb |
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Up with xm |
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Up with pepperstone |
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Up with fpmarkets |
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Up with trading212 |
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Up with plus500 |
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Up with easymarkets |
Risk Warning | 78% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | Losses can exceed deposits | 71% of retail investor accounts lose money when trading CFDs with this provider | 74% 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. 75.59% 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. | 74-89 % of retail investor accounts lose money when trading CFDs | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | Your capital is at risk |
Demo |
eToro Demo |
IC Markets Demo |
Roboforex Demo |
AvaTrade Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
easyMarkets Demo |
Excluded Countries | 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, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, JP | BE, BR, KP, NZ, TR, US, CA, SG | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, AS, AQ, AR, 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, UY, VU, VG, EH, YE, ZW | US, JP, NZ | US, CA | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | 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 |
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
You can compare Shorting A Stock 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 Shorting A Stock Investment Platforms for 2022 article further below. You can see it now by clicking here
We have listed top Shorting A Stock Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.