Can You Short Sell on thinkorswim?
If you are looking for a good broker and trading platform for short selling, thinkorswim (powered by Charles Schwab) is an excellent option. The platform offers many features and tools that make it a good fit for active investing, and the broker behind the software provides competitive pricing for short sellers.
Read on to see what thinkorswim and Charles Schwab have to offer.
Available Securities
As a full-service broker, Charles Schwab offers a wide range of securities for trading. For short selling, traders can access eligible stocks and ETFs that Schwab can borrow. Selling stocks short requires a margin account, so foreign stocks held in a Schwab Global Account cannot be sold short because that account is cash-only.
thinkorswim Requirements for Short Selling
Before you can start selling stocks short, there are a few requirements that your account must meet.
- Your account must have at least $2,000 in cash equity or eligible securities.
- Your account must have margin enabled.
- Initial and maintenance account balance requirements must be satisfied.
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thinkorswim Maintenance Requirements
Depending on the cost per share of the securities being sold short, different amounts of money need to be kept in the account as maintenance.
- For shares over $16.66, maintenance is 30% of the short market value.
- For shares between $5.00 and $16.66, maintenance is $5 per share.
- For shares between $2.50 and $4.99, 100% of the short market value is required.
- For shares under $2.50, maintenance is $2.50 per share.
thinkorswim Short Locate
If your account meets all the requirements, but the stock you choose is unavailable for shorting, it may be categorized as hard to borrow (HTB).
Pink sheet stocks, high-demand stocks, and highly volatile meme stocks are often classified as HTB. Traders may need to request shares from the broker, and then the broker locates and loans those shares to investors on a case-by-case basis. The process is known as a short locate.
Due to limited supply and high demand, these securities can have higher stock borrow fees.
Determining the HTB Status of a Security
On thinkorswim, there are a few ways to see a security's ETB/HTB status, but the easiest and fastest way to check is to add an HTB column to your watchlist. Clicking the small gear icon on the top-right opens a column menu where you can add it.
thinkorswim Short Selling Fees
Knowing how the fees work is important before establishing an order to sell stocks short.
thinkorswim offers $0 online commissions on U.S. exchange-listed stock and ETF trades, including eligible short sales. However, short positions can have Stock Borrow Fees, and margin interest can apply if the account carries a margin debit balance.
Margin Rates
thinkorswim uses Charles Schwab’s margin rates. These rates are tiered by debit balance, and margin interest can fluctuate while a loan remains outstanding. Margin interest is calculated daily on the amount borrowed and posted to the account monthly. Margin interest is separate from any Stock Borrow Fee attached to a short position.
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Debit Balance
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Charles Schwab Margin Rate
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$0 - $24,999.99
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11.825%
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$25,000 - $49,999.99
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11.325%
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$50,000 - $99,999.99
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10.375%
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$100,000 - $249,999.99
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10.325%
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$250,000 - $499,999.99
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10.075%
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$1,000,000+
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call 877-752-9749
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thinkorswim Stock Borrow Fees
Stock Borrow Fees are variable and are determined by supply and demand for the security in the securities lending market.
For example, a high-demand, low-supply stock might have a 5% borrow rate, costing about $1.39 per day for a $10,000 short market value. In contrast, a readily available stock might have a lower 2% rate, costing about $0.56 per day for the same short market value.
The daily Stock Borrow Fee is calculated as the end-of-day short market value multiplied by the quoted interest rate and divided by 360. The fee can change daily, can apply as long as the short position remains open, and appears on the account statement as an aggregate monthly charge.
Tools and Platforms
thinkorswim is well-known for its advanced features. The primary thinkorswim platform is the most feature-rich, but there are also pared-down versions (browser-based and mobile) that are well suited to a more mobile approach to trading.
Here are some of our favorite features from the desktop platform:
- Comprehensive Charting
- Customizable Interface
- paperMoney (Practice account)
- OnDemand (Market Replay)
- Real-Time News and Market Data
- Level II Quotes (Free)
- Advanced Order Types
- Trading Ladder (DOM)
- thinkScript (Full code-based customization)
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Visit thinkorswim Website
Updated on 6/26/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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