Broker to short under $5, good short list?

Discussion in 'Retail Brokers' started by rogerkr, Mar 11, 2004.

  1. rogerkr


    I'm not terribly concerned about cost, features, or even execution speed, but I need to be able to short down to at least $2.00 share prices, and I need the broker to be good at finding scarce shares to short--any recommendations?
  2. rwk


    I just checked IB's short list, and it's running about 2500 for Nasdaq and 2600 for NYSE. I don't know how often they update it. It's about the best list I have seen.

    I had the impression that a stock has to be marginable to be shorted, and that stocks have to be at least $5 to be margined. It seems to me that shorting stocks under $5 would have limited potential.

  3. gaj


    IB was mentioned already, so you can check them up on your own.

    tradestation claims to have shares of stocks down to $3.

    cybertrader claims to have shares at any price; not on the super-hard-to-get stocks, of course.

    if you generate enough commissions for your direct access brokerage, and show 'expertise' and that you're not putting the brokerage at risk, you should find someone there who's able to get you permission to short under $5 stocks. it was much tougher several years ago; you'd have to do it via a garban or prop shop only.
  4. gaj


    oh, also, IB updates their list every morning between 730 and 750. i've heard they update stuff during the day; i've only once found where a stock i could short in the a.m. wasn't shortable in the pm, and never the reverse.