Best Forex Brokers for Short Selling

  1. What Is Short Selling?
  2. Best Forex Short Selling Brokers
  3. What Is Naked Short Selling
  4. What Is Short Selling a Stock?
  5. Do I Need Special Broker for Shoring?
  6. Short Selling Brokers List

What is Short Selling Broker?

Short selling, Shorting or Selling is a trading strategy in which investors make profits when the value of the asset falls, so short selling opposes long-term selling. While the term ‘short’ has been in use in finance since the 19th century, and also means the selling position in the market.

  • Most Forex brokers allows Short or Selling positions, yet some restrictions may be applicable, especially on News Trading
  • Real Stock Brokers offer Stock Selling too yet with some conditions or restrictions, see our notes below

Read more about Short Selling on the Wikipedia Page.

💻Short SellingStrategy with a short time-frame, or Selling Position
📈Trading InstrumentsAll, as offered by the Broker
💰 FeesLow

What is Short Selling Trading Platform?

Many brokers nowadays offer Short selling since is one of the most popular trading strategies. To choose the right trading platform for short selling make sure the broker allows short selling and the range of assets and conditions meet your needs.

See some important notes on Shorting positions below:

  • Selling is another side of the long-position or buying position, while Short selling provides greater liquidity, increasing the opportunities for short-term traders, such as day traders and scalpers.
  • Typically in Forex trading shorting simply means selling where traders borrow assets and sell them leaving an open position.
  • In Stocks, it has some specifics though – since the seller borrows Stock and sells it, and further, the investor might repurchase the sold stocks, and make a profit. Short sellers buy back the shares at a relatively lower price. However, traders may lose when the prices go up.
  • Choose bigger brokers that will be able to provide ability to short every stock, also a broker that provides a simple interface, that won’t be confusing for any position or startegy you follow
  • It’s important to take into account the broker’s margin account. To borrow shares, traders will need a margin account
  • In short selling, it is essential to make the right decisions about the stock price plunges and time the trades accurately. Also, it is essential for traders to use fundamental analysis or technical analysis to identify short-selling assets.

AdvantagesDisadvantages
Majority of Forex Brokers allows Selling or ShortingReal Stocks selling is not widely available
Does not require huge capital investmentsPotentially limitless losses
Making money in falling marketsLimited effectiveness
Investors can hedge their portfolio against bear marketsMight be not suitable for All Instruments

Top 5 Best Forex Short Selling Brokers

Here is the selection of our Best Forex Short Selling Brokers that we Ranked as the best option for Shorting, yet mainly are Forex Brokers so there is no restriction on possitions, also a good match to keep the investments safe and working properly along the time:

  • HFM — Best Overall Broker for Short Selling 2024
  • BlackBull Markets — Best Short Selling Broker for Beginners 2024
  • FP Markets — Best Broker accept Short Selling with Lowest Spreads 2024
  • Eightcap — Best MT4 Broker for Short Selling 2024
  • BDSwiss — Best EAs Broker for Short Selling 2024

What Is Naked Short Selling?

In fact, since 2008, naked short-selling has been illegal. It is a practice of selling short shares that were not determined to exist. In other words, naked shorting happens when investors sell assets they do not really possess. Although prohibited, naked short selling still takes place in the market because of existing loopholes.

What Is Short Selling a Stock?

If the share price of the stock goes down investors may profit by short-selling it, while traders should first identify the stock they want to short-sell, have a margin account with a broker, and enter an order for shares.

However, Stock Shorting has some specifics since the broker will lend shares to the trader and sell them on his behalf. 

Do I Need Special Broker for Shorting or Any Broker Is Good?

No, almost all Forex Brokers have the option to sell and buy assets so any Broker supports it. However, in short-selling of Real Stocks, not all Brokers offer it, so it is better to go with bigger brokers that will be able to provide every stock to short.

List of Brokers allowing Short Selling

This is our full list of Trading Brokers suitable for Short Selling Positions offered and reviewed by our experts:

Broker Detail
HFM Logo HFM
Min. Deposit: 0 US$
Max. Leverage: 1:30 | 1:2000
Trading Platforms: MT4, MT5, HFM Trading App
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
1
HFM Review
BlackBull Markets logo BlackBull Markets
Min. Deposit: 0 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5
Regulation: FMA, FSA
2
BlackBull Markets Review
FPM logo FP Markets
Min. Deposit: 100 US$
Max. Leverage: 1:30
Trading Platforms: IRESS, MT4, MT5, cTrader
Regulation: ASIC, CySEC, St. Vincent and the Grenadines, FSP, CMA
3
FP Markets Review
Eightcap
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, TradingView
Regulation: ASIC, SCB, CySEC, FCA
4
Eightcap Review
BDSwiss Review BDSwiss
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, BDSwiss Webtrader and App
Regulation: FSC, FSA
5
BDSwiss Review
GO Markets
Min. Deposit: 0 US$
Max. Leverage: 1:30, 1:500
Trading Platforms: MT4, MT5, cTrader, WebTrader
Regulation: ASIC, CySEC, FSC, FSA
GO Markets Review
HYCM
Min. Deposit: $20
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, HYCM Trader
Regulation: FCA, CySEC, DFSA, CIMA
HYCM Review
Pepperstone Review Pepperstone
Min. Deposit: 200 US$
Max. Leverage: 1:30 to 1:400
Trading Platforms: MT4, MT5, cTrader, TradingView
Regulation: ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN
Pepperstone Review
JustMarkets Review Logo JustMarkets
Min. Deposit: $10
Max. Leverage: 1:30 | 1:3000
Trading Platforms: MT4, MT5
Regulation: FSCA, CySEC, FSA, FSC
JustMarkets Review
FXCC Review FXCC
Min. Deposit: No minimum deposit
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4
Regulation: CySEC, SVG FSA
FXCC Review