for a small account to test strategy, ZECCO account will be good? There are other examples of stock growth. [Update 2017-5-3]: Interactive Brokers allows preborrowing shares to short of any stock. Here I am reading this almost 5 years later, but looks like the brokerages haven’t changed their methods or platform (except the merging of TDAmeritrade and ToS). Commodity futures and options on futures products and services offered by E*TRADE Futures LLC, Member NFA. Thanks for the blog, really is very good information as usual, I have come to expect nothing less from you and your writing/knowledge. Most investments don’t move in the same direction at the same time. They are shorting stocks and profiting all the way down. Required fields are marked *, Please complete the formula below to prove that you are human * It's just part of the everyday workings of the stock market. This creates buying pressure on the stock. When you are ready to cover, you click the buy (or cover) button and your done. DAS Trader Pro just because I’ve used it for years and like it and it is cheap to use with Vision Financial clearing. Interactive Brokers Corporation They search the Internet for news stories about diners getting food poisoning at a restaurant, for instance, and look for ways to cash in on the stock falling. Suggested Keywords: Account types, DRIPs, Routing number, IP, Penny stocks. You can view quotes here: I think you’ll make a a lot of your readers very happy with this one. These were all on Sogo’s easy to borrow list. I get a pop-up that says pre-borrow requests are only for market orders only. Hopefully I can get my account to 10k so I can try them.. You contact your broker, who finds 100 shares from another investor and lets you borrow them. I’ve just double-checked the html version of the list – the interest rate for borrowing is not reflected in there. Centerpoint – At the bottom of the level 2 montage there are the letters “ETB”. The FTP link will show a large text file; use your browser’s search function to find a stock by name or ticker. E*TRADE charges $0 commission for online US-listed stock, ETF, and options trades. FYI. You must have a margin account to be able to short stocks. Lightspeed Trading – Lightspeed generally sets up clients to clear through Penson, although they can clear through Goldman Sachs. }, Yes but you need a Portfolio Margin account (which means you need over $110,000 in your account) to submit preborrow requests. I’ve been having trouble getting the shorts I want with IB. Does this make sense? I was also a silver subscriber of Tim’s last year but could not afford to renew my subscription as yet. Can you recommend a good broker other than IB (which requires you make $40k a year to trade), Speed Trader (they turned me down as I do not make “20-40 trades a day”), or Etrade for short selling Nasdaq stocks under $10.00? Dude you rock thanks for the information! Securities, investment advisory, commodity futures, options on futures and other non-deposit investment products and services are not insured by the FDIC, are not deposits or obligations of, or guaranteed by, E*TRADE Bank or E*TRADE Savings Bank, and are subject to investment risk, including possible loss of the principal amount invested. Also : how much it cost at the moment for IB scanner / charting / level 2 ? It seems on the Interactive Brokers list they always seem to have shares to short. Statement of Financial Condition | About Asset Protection | Account Agreements and Disclosures | Quarterly 606 Report | Business Resiliency Plan, ©currentYear E*TRADE Financial Corporation. }. even with their per share commissions. Download 14 free technical analysis and stock market related eBooks - at no charge! Do you recommend doing this? All rights reserved. E*TRADE Copyright Policy. This stock has rallied up into the TAZ and formed a swing point high which is part of our normal entry strategy. The information contained in the third-party material has not been endorsed or approved by E*TRADE, and E*TRADE is not responsible for the content. This information neither is, nor should be construed as, an offer or a solicitation of an offer, or a recommendation, to buy, sell, or hold any security, financial product, or instrument discussed herein, or to open a particular account or to engage in any specific investment strategy by E*TRADE. You can place an order, which will cause the system to automatically look for more shares, but I have found that to almost never result in the system finding shares. I went with TD Ameritrade to short sell, but have not been able to get shares for the last 5 trades I have tried to make. For small accounts Zecco should be better to start, but doesn’t have trading platform . Lam. If the short sellers were not involved in the stock, it could plummet! Shorting non-marginable stocks (including all OTC stocks) is prohibited. In this short video, we’ll show you how to use E*TRADE’s Stock Screener to quickly find stocks that match your investment criteria. Get support from our team of experienced financial professionals. Dividends are typically paid regularly (e.g. Member FINRA/SIPC. Most people never ask the right questions. As a noob i Was scared of IB. TD Ameritrade generally has poor short stock availability (although sometimes they will have shares of hard-to-borrow stocks). Learn about our margin trading flexibility, tools, and capabilities. Wrong! If the stock pays a dividend while you are short, YOU will be liable (you'll have to pay it).  =  Don’t know how good is their ETB and HTB list as compared to Centerpoint. I would like to point out that there are a number of ways to get ‘short’ which includes selling the stock, trading options and selling Single Stock Futures (SSF). I decided to call up speedtrader.com and they said that they allow the short trading of penny stocks. I noticed just recently that the link the IB holding cost data no longer works. Every small online discount broker of which I am aware (except perhaps Zecco) clears through Penson. You must enter a short order and if it is rejected then that stock is not shortable at the present time. It won't make any difference to you whether we are in a bull market or a bear market. With Centerpoint, do you have an update of what is better, Vision or Hilltop? They do not realize that you can make money when stocks go down. Don’t think you’re getting to borrow the shares for nothing, though. Because stocks typically go down at a faster rate, then when they go up! setTimeout( Borrow up to 50% of your eligible equity to buy additional securities. Definitely one of the best swing trading eBooks that you can buy. I saw GVBP on the SEC few days ago. You buy 100 shares of ABC Company for $2,500, give the shares back to the brokerage you borrowed them from, and pocket a $1,500 profit. Just goes to show you can always learn something. Bank products and services offered by E*TRADE Bank and E*TRADE Savings Bank, both federal savings banks and Members FDIC. The information contained in the third-party material has not been endorsed or approved by E*TRADE, and E*TRADE is not responsible for the content. This information neither is, nor should be construed as, an offer or a solicitation of an offer, or a recommendation, to buy, sell, or hold any security, financial product, or instrument discussed herein, or to open a particular account or to engage in any specific investment strategy by E*TRADE. That’s about the only major broker I see you left off that I’ve heard decent things about. I have also configured my Trader’s Workstation software to show the “Shortable” column. Interactive Brokers has detailed instructions on how to use this tool. The short stock availability changed a little bit. It depends on which side (long or short) of the market you are on. Thank you. The material provided by E*TRADE Financial Corporation or any of its direct or indirect subsidiaries (E*TRADE) or by a third party not affiliated with E*TRADE is for educational purposes only and is not an individualized recommendation. Best brokerage firm for shorting stocks is LIGHTSPEED TRADING. Below is a detailed video of how to do that. The method of borrowing shares differs at different brokers. Watch a demo on how to use our margin tools, Characteristics and Risks of Standardized Options, Special Statement for Uncovered Options Writers, Advanced margin tools and real-time updates let you manage your trading with precision. I pretend that I am you and complain. But being able to reserve shares is one big advantage to have over others. (function( timeout ) { How to Draw Trend Lines on a Stock Chart », Learn Some Advanced Swing Trading Tactics ». Lightspeed will then make an additional attempt to secure the requested shares for that specific user. Use this to buy or sell a stock at the prevailing market price as close as possible to the close of trading on the day the order is entered. E*Trade –  There is no way to determine which stocks are shortable. That is where you will want to sell short this stock. Suggested Keywords: Account types, DRIPs, Routing number, IP, Penny stocks. Stock plan administration solutions and services offered by E*TRADE Financial Corporate Services, Inc. All separate but affiliated subsidiaries of E*TRADE Financial Corporation. I am a sales representative with Interactive Brokers and can be a resource for opening an account with Interactive Brokers. For example, the FTP link shows each stock on a line that looks like this: “AMEL|USD|Amerilithium Corp|73282418|US03077G1067|03077G106|-2.69|NA|NA|20000|”. Your broker will now return the borrowed shares to the owner and you will profit the difference. The interest rate can change from day to day as the stock becomes more or less easily available to short. .hide-if-no-js { Another innovation is the AQS market place where you can borrow and lend shares, check it out, http://institutions.interactivebrokers.com/en/software/pdfhighlights/PDF-StockLoanBorrow.php?ib_entity=inst, John Carroll Seeberg Wow, this post is already #4 on Google for the search “how to borrow shares to short”, right behind a Tim Sykes post. On Nov. 18, he sold $33,000 in KBIO stock in his ETrade Financial Corp. account at an average price of about $2 a share. I’ve updated this with info on Lightspeed. See the first video below for how to use the shortable column. Only in this case your risks will be reduced, and you will definitely find yourself in good growth. http://www.onechicago.com/?page_id=1289 These fees are not established by E*TRADE and will vary by exchange. I researched the HTB stocks and found out the following sample : It is closed for the day, at 3pm EST. Below is a video about how to use Interactive Brokers’ short stock availability tool. Most brokers, Etrade included, require you to have a margin account with at least $2,000 in order to be able to short stocks. I look forward to rejoining Tim as soon as I can get my account back up above $25k. timeout So in order to make any money you need to learn the art of shorting. E*TRADE has more choices for you when placing a trade than just the below options. You can not short OTC stocks either, so I asked them if there was a way that I could narrow my scans to find only those stocks and they said no. Etrade is the third-best and TDA is worthless. Scottrade –  There is no way to determine which stocks are shortable. Apex has sucked for years for borrows. thanks Reaper. Please complete the formula below to prove that you are human. Noble Trading, Cobra Trading, and LowTrades.com all clear through Penson. SEED: IB current rate -50.50. No. I use Interactive Brokers (which I love) and Centerpoint Securities (clearing through Vision Financial). I found this page fascinating and well done. HI. That's it! Nice job on the video. Purchase more shares than you could with just the available cash in your account, based on your eligible collateral, If the stock price goes up, your earnings are amplified because you hold more shares, If the stock price moves against you, you could lose more than your initial investmentÂ, As with any loan, you pay interest on the amount you borrowed.