Which broker is best for short selling shares?
Verdict
- Pepperstone is our pick for short selling shares from Singapore: you can open a short on any of its 1,162 share CFDs, at the same commission as a long trade, with retail leverage up to 1:20.
- Singapore residents are served by Pepperstone Markets Limited (SCB, The Bahamas, SIA-F217); Pepperstone holds no MAS licence.
- Its main gap for short sellers: no guaranteed stop-loss, so a stock that gaps higher at the open can fill your stop well above its level. IG, Plus500 and CMC Markets publish guaranteed stops on their UK sites.
- With a CFD you never borrow the stock yourself, but you still pay overnight financing for every night the short stays open.
Shorting through CFDs lets you sell first and buy back later without arranging a stock loan. What separates brokers is the range of shortable shares, the commission and how they handle a squeeze. Here is how Pepperstone measures up, and where it does not.
Why Pepperstone suits short sellers
Breadth and cost. Pepperstone's share CFDs cover 600+ US shares, about 200 ASX stocks, 46 Hong Kong shares, 100+ LSE names and a European range. Commission is charged per side and is the same whether you open long or short: US$0.02 per share on US stocks, 0.2% on Hong Kong shares (international site), and 0.07% to 0.10% on Australian, UK and German shares in its published schedules. Pepperstone says orders fill from 50 milliseconds with a 99.32% fill rate and no dealer intervention, based on trades from January to March 2026. You can run shorts on MT4, MT5, cTrader, TradingView (Razor) or its own platform.
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A short share CFD trade, step by step
You sell 200 CFDs on a US stock at US$50, a position worth US$10,000.
- Margin at 1:20: US$500. Commission: 200 × US$0.02 = US$4 to open.
- The stock falls to US$47: you buy back for a US$600 gain, less US$8 total commission.
- The stock rises to US$53: you lose US$600 plus commission, more than the US$500 margin, so the position is closed out or you top up first.
- Under the Bahamas entity's terms, retail clients are not liable for a negative balance if the stock gaps through everything.
Risks Pepperstone does not remove
- No guaranteed stop-loss: Pepperstone publishes none, so stops can slip on gaps, the main danger for a short.
- Losses on a short have no ceiling, because a share price has no upper limit.
- Overnight financing applies to every night held, which makes long-dated shorts expensive.
- Dividends: ask how a short position is debited when a share goes ex-dividend before you hold through that date.
Alternatives if you want MAS supervision or a guaranteed stop
Pepperstone wins on range and published cost, but a few MAS-licensed firms offer things it does not. Guaranteed-stop terms below come from their UK sites; confirm the Singapore entity offers the same.
| Broker | Singapore entity | Guaranteed stop |
|---|---|---|
| Pepperstone | None; SCB-licensed Bahamas entity | Not offered |
| IG | IG Asia Pte Ltd (MAS) | Yes on UK site, premium only if triggered |
| Plus500 | Plus500SG Pte Ltd (MAS CMS100648) | Yes, priced through a wider spread |
| CMC Markets | CMC Markets Singapore (MAS) | Yes on UK site, fee refunded if not triggered |
| Saxo | Saxo Capital Markets Pte. Ltd. (MAS) | No guaranteed stop in its order list |
Sources
Fees, products and order terms from each broker's own pages.
Can I short Hong Kong shares at Pepperstone?
Yes. Its 46 HKEX share CFDs can be sold short like any other, at 0.2% commission per side on the international site.
Do I need a special account to short shares?
No. Both the Standard and Razor accounts trade share CFDs, and a short is simply a sell order that opens a position.
How much do I need to start?
Pepperstone's minimum deposit is $10, but a short position needs enough margin to absorb a move against you, so fund well above the 5% margin requirement.
Short selling with CFDs exposes you to losses that can grow quickly if prices rise, and leverage makes them larger. This page is not investment advice. Check current fees, margin and order types with the broker before you trade.