Can You Short Sell on thinkorswim?
If you are looking for a strong broker and trading platform for short selling, thinkorswim (powered by Charles Schwab) is a very good option. The platform includes many features and tools that work well for active traders, and the broker behind the software offers competitive pricing for short sellers.
Keep reading to see what thinkorswim and Charles Schwab have to offer.
Available Securities
As a full-service broker, Charles Schwab offers a broad range of securities for trading. For short selling, traders can access many U.S.-listed stocks and ETFs, and some other U.S. securities may also qualify if they meet Schwab's rules and shares are available to borrow. A Schwab Global Account is cash-only, so international stocks cannot be sold short through it.
thinkorswim Requirements for Short Selling
Before you can begin short selling, there are a few requirements your account must meet.
- Your trading account must have at least $2,000.
- Your account must have margin enabled.
- Initial and maintenance margin requirements must be met.
Free thinkorswim Platform
thinkorswim Maintenance Requirements
Depending on the share price of the securities being sold short, different amounts of money must be kept in the account for maintenance.
- For shares over $16.66, maintenance is up to 30%
- For shares between $5 & $16.66, maintenance is $5 per share
- For shares between $2.50 & $4.99, 100% of the share price 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 pick is not available for shorting, it may be classified as 'Hard to Borrow' (HTB).
Pink sheet stocks, high-demand names, and highly volatile meme stocks are often placed in the HTB category. Traders may need to request shares from the broker, and the broker then locates and loans those shares to investors on a case-by-case basis. This process is known as a short locate.
Because of the added risk, these securities often come with higher short interest rates.
Determining the HTB Status of a Security
On thinkorswim, there are several ways to see a security's ETB/HTB status, but the fastest and easiest method is to add an HTB column to your watchlist. Clicking the small gear icon in the top-right opens a column menu where you can add it.
thinkorswim Short Selling Fees
It is important to understand the fees before submitting an order to sell stocks short.
thinkorswim offers commission-free short selling, but there can be a margin interest rate on short positions and a variable stock-borrow fee that depends on the security.
Margin Rates
Schwab's current published margin rates range from 10.075% for balances of $250,000-$499,999.99 to 11.825% for balances under $25,000. However, margin rates can always change, so checking current rates before borrowing on margin is a good idea.
|
Debit Balance
|
Charles Schwab Margin Rate
|
|
$0 - $24,999.99
|
11.825%
|
|
$25,000 - $49,999.99
|
11.325%
|
|
$50,000 - $99,999.99
|
10.375%
|
|
$100,000 - $249,999.99
|
10.325%
|
|
$250,000 - $499,999.99
|
10.075%
|
|
$1,000,000+
|
call 877-752-9749
|
thinkorswim Short Interest Rates
Short interest rates are variable and are determined by the stock's availability and borrow demand.
For example, a high-demand, low-supply stock might have a 5% interest rate, costing about $1.36 per day for a $10,000 short market value. In contrast, a readily available stock might have a lower 2% rate, costing about $0.55 per day for the same value.
Although the rates are based on an APY, they are charged daily and deducted from your account once a month.
Tools and Platforms
thinkorswim is well known for its advanced features. The desktop version is the most feature-rich, but there are also streamlined versions for web browsers and mobile devices that work well for trading on the go.
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)
Free thinkorswim Platform
Visit thinkorswim Website
Updated on 4/7/2026.
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.
|