Jump into short selling in the UAE’s thriving economy for 2025, where tax-free gains and DFSA/ADGM regulation make profiting from falling markets straightforward. Our top 10 platforms, like eToro for beginner CFD shorts and Interactive Brokers for vast OTC borrowing, are tested for fees, tools, and accessibility in Dubai or Abu Dhabi. Whether you’re new to shorting ETFs or a pro with stock borrows, this guide offers clear rankings, comparisons, reviews, and FAQs to navigate short trading safely.
Short Selling Platforms in UAE Rankings
1eToro 4.9 Your capital is at risk.
Best for beginner short selling with ADGM-regulated CFDs and CopyTrader
2Interactive Brokers 4.8 Your capital is at risk.
Best for advanced short selling with DFSA-regulated stock borrowing and APIs
3AvaTrade 4.7 Your capital is at risk.
Best for CFD shorting with DFSA-regulated low spreads and Islamic accounts
6TradeStation 4.4 Your capital is at risk.
Best for active short selling with SEC-regulated charting tools
7Charles Schwab 4.3 Your capital is at risk.
Best for research-driven short selling with SEC-regulated platforms
Safety & Regulation for Short Selling in UAE
Jump into short selling in the UAE’s tax-free market, where strict rules keep your bearish trades safe. Brokers like eToro, Interactive Brokers, and AvaTrade follow AML/CFT and 2023 Due Diligence Regulations under DFSA and SCA. Check how to stay safe with our UAE trading regulations guide.
SCA Regulation for Short Selling
SCA oversees short ETFs and CFDs on DFM and ADX, enforcing AML/CFT, IOSCO standards, and short position reporting to prevent squeezes for brokers like eToro and XTB.
DFSA Oversight for Short Selling
DFSA regulates short CFDs and stock borrowing in DIFC, mandating audits, 25–50% margins, and borrow checks for brokers like Interactive Brokers, AvaTrade, and Pepperstone.
ADGM FSRA Regulations
ADGM FSRA ensures Sharia-compliant shorting per AAOIFI standards and AML/CFT for brokers like eToro, protecting UAE traders from unregulated setups.
Central Bank Oversight
The UAE Central Bank enforces AML/CFT rules, requiring brokers like Saxo Bank to log short positions and monitor borrow availability securely.
Tier-1 Global Regulation
FCA and SEC add global protections like negative balance for brokers like IG Trading and Charles Schwab, shielding UAE short traders from volatility risks.
Cybersecurity for Short Selling
Platforms like Interactive Brokers use encryption, 2FA, and secure APIs to protect your short trades and borrowing accounts from cyber threats.
Platform-Specific Compliance
Brokers like AvaTrade and XTB offer Sharia-compliant accounts, adhering to 2023 Due Diligence for ethical short CFD and ETF trading.
Investor Protection
DFSA and SCA brokers provide free segregated accounts to secure funds, though UAE lacks a compensation scheme unlike FCA’s £85,000 coverage.
Safety & Regulation Comparison for Short Selling Platforms in UAE
Need a safe broker for short selling in UAE? We’ve vetted top platforms like eToro and Interactive Brokers for 2025 compliance with DFSA, SCA, and global standards, ensuring secure short trades with robust protections and Sharia options.
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Note: This table reflects 2025 UAE standards, ensuring safe short selling with DFM/ADX compliance, Sharia options, and tax-free profits. Check brokers’ track records for trusted short trading.
Disclaimer: Regulatory data is based on 2025 standards and may change. Confirm with brokers for updated compliance, protections, and risks like short squeezes in UAE’s tax-free market.
Trading Fees Compared
provide affordable 2025 rates for borrowing stocks, CFDs, and ETFs in a tax-free market, enforced by DFSA guidelines for clear pricing. We’ve assessed these platforms to minimize your short trade expenses.
Key Short Selling Trading Fees
- Spreads: Cost for CFD shorts, like 0.05% on IG Trading’s stock CFDs.
- Commissions: Fees for ETFs/stocks, like $0.005/share on Interactive Brokers.
- Leverage: Enhances short positions, capped at 20:1 in UAE; pair with stop-loss for squeezes.
- Short Sale Fee: Costs for initiating shorts, like $0 on AvaTrade CFDs.
Short Selling Trading Fees Comparison for UAE Platforms
Compare fees for key short assets: stock CFDs (e.g., Tesla CFD), index CFDs (e.g., NASDAQ CFD), commodity CFDs (e.g., oil CFD), ETF shorts (e.g., SPY ETF), and forex pairs (e.g., EUR/USD short).
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Note: Low spreads like 0.02% on Pepperstone’s CFDs and $0 commissions on eToro’s ETF shorts cut expenses for bearish plays in UAE’s tax-free market. Short sale fees are $0 on most CFDs, but check stock borrowing availability.
Disclaimer: Fees are based on 2025 standard accounts and may vary. Confirm with brokers for updates, including risks like short squeezes in UAE’s tax-free market.
Non-Trading Fees Compared
What hidden costs impact short sellers in the UAE? Brokers like eToro and Interactive Brokers reduce 2025 non-trading fees with AED accounts, avoiding currency charges in a tax-free market. DFSA and SCA rules maintain fair fees, allowing you to concentrate on bearish positions.
Key Non-Trading Fees
- Inactivity Fee: Charges for idle accounts, like $10/month on XTB after 12 months.
- Withdrawal Fee: Costs for cashing out, like $5 on eToro.
- Deposit Fee: Funding charges, usually none for Pepperstone.
- Account Maintenance Fee: Upkeep fees, like $100/quarter on AvaTrade after 12 months.
- Swap Fees: Overnight costs for CFD shorts, like $1.80/lot/day on IG Trading, waived for Islamic accounts.
- Currency Conversion Fees: Fees for non-AED, like 0.3% on Charles Schwab.
- Fee Waiver Conditions: Ways to avoid fees, like 3 trades/month on IG Trading.
- Borrow Maintenance Fee: Ongoing costs for stock shorts, like 0.25% annual on Interactive Brokers.
Non-Trading Fees Comparison for UAE Short Selling Platforms
Compare non-trading fees for UAE’s top short selling platforms to maximize your bearish gains.
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Note: Zero fees from Charles Schwab and low costs from Pepperstone, plus AED accounts on Interactive Brokers and Saxo Bank, help UAE short sellers in 2025. Swap-free Islamic accounts keep CFD shorts Sharia-compliant.
Disclaimer: Non-trading fees are based on 2025 standard accounts and may vary. Confirm with brokers for updates, including risks like borrow fees or currency conversion for non-AED short trades.
Account Setup & Accessibility Compared
How fast can you start short selling in the UAE? Brokers like eToro and Interactive Brokers offer quick 2025 setups for CFDs and stock borrowing, backed by DFSA KYC rules. We’ve checked these platforms to streamline your bearish trading launch.
Account Setup Comparison for UAE Short Selling Platforms
Compare account setup for UAE’s top short selling platforms to hit the market running.
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Note: Swift setups on XTB ($0 deposit), Interactive Brokers ($0), and eToro ($100), plus instant card funding and Islamic accounts, make short selling smooth in UAE’s 2025 tax-free market. Verify margin setup for stock borrowing.
Disclaimer: Setup details reflect 2025 standard accounts, tested live, and may vary. Confirm with brokers for updates, including risks like margin calls in short selling markets.
Mobile & Desktop Platforms Compared
Short sell on the go in the UAE? Brokers like eToro and Interactive Brokers offer slick 2025 platforms for CFDs and stock borrowing, with intuitive apps and bearish tools. We’ve tested these to make your short selling seamless.
Key Platform Metrics
- Platform Names: Apps and desktops, like eToro Platform for eToro.
- Platform Score: Rates usability and shorting tools, like 4.9 for TWS.
- Mobile Score: How apps handle short trades, like eToro’s 4.8.
- Shorting Tools: Features like borrow checkers for effective shorts.
- Best Features: Highlights, like eToro’s CopyTrader for shorting.
- Custom Alerts: Notifications for price or borrow status, like Interactive Brokers’ alerts.
Mobile & Desktop Platform Comparison for UAE Short Selling
Compare platforms for UAE’s top short selling brokers to trade CFDs and stocks with ease.
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Disclaimer: Platform features reflect 2025 standards, tested live, and may vary. Confirm with brokers for updates, including risks like platform downtime or short squeezes in UAE’s tax-free market.
Short Selling Products & Markets Compared
Dive into short selling with UAE’s top brokers, offering stocks, CFDs, and ETFs for bearish bets in 2025. eToro leads with easy CFD shorts, while Interactive Brokers shines for vast stock borrowing. DFSA/SCA rules ensure safe access to DFM, ADX, and global markets in this tax-free hub.
Short Selling Products & Markets Comparison for UAE Brokers
Compare short selling products and markets for UAE’s top brokers to trade with confidence.
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Disclaimer: Product and market availability reflect 2025 standards and may vary. Confirm with brokers for updates, including risks like short squeezes or market volatility in UAE’s tax-free hub.
User Base & Community Compared
Meet the short selling crowd in the UAE! Top 2025 brokers like eToro and Interactive Brokers draw everyone from CFD newbies to stock short pros, with vibrant communities and Sharia options. Backed by DFSA and SCA rules, these tax-free platforms make bearish trading a breeze.
User Base & Community Comparison for UAE Short Selling
Compare the user base and community for UAE’s top short selling brokers to find your crew.
| Broker Name | ||
|---|---|---|
| eToro | ||
| Interactive Brokers | ||
| AvaTrade | ||
| Saxo Bank | ||
| Pepperstone | ||
| TradeStation | ||
| Charles Schwab | ||
| Zacks Trade | ||
| IG Trading | ||
| XTB |
Disclaimer: User base data is approximate, based on 2025 figures, and may vary by region or account type. Confirm with brokers for updates on community features or trading activity in UAE’s tax-free short selling market.
Top Short Selling Platforms in UAE Reviewed
1. eToro – [Best Short Selling Trading Platform in UAE 2025]
Min Deposit: $100
Education and Research: ~20 webinars/year, 5+ short selling guides, social trading platform, CopyTrader insights
Short Selling Product Range: ~100 products (stock CFDs, index CFDs, commodity CFDs, forex, ETF shorts)
Platform Tools: CopyTrader for short strategies, short position trackers, stop-loss alerts
61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Best For: Beginner short selling with ADGM-regulated CFDs and CopyTrader
Key Points
- Offers ~100 shortable CFDs and ETFs, including stocks, indices, and forex, with $0 commissions.
- eToro Platform (4.7 score) and Mobile (4.8 score) provide CopyTrader and short alerts for easy bearish trades.
- Arabic interface and Islamic accounts suit UAE short sellers.
- $100 minimum deposit and free demo account make starting simple.
- Trusted by ~38M users, mostly beginners trading weekly in 2025’s tax-free market.
- ADGM and SCA regulation ensures secure short trading.
Pros:
- $0 commissions on CFDs and ETFs cut shorting costs.
- CopyTrader lets you mimic pro short strategies, ideal for newbies.
- Islamic accounts support Sharia-compliant shorting.
- Free demo account offers risk-free practice.
- High mobile score (4.8) for on-the-go shorting.
Cons:
- No stock borrowing limits direct shorting options.
- 0.20% CFD spreads higher than some competitors.
- $5 withdrawal fee for frequent cash-outs.
Note: Spreads (e.g., 0.20% on CFDs) and swap fees ($2.00/lot/day, waived for Islamic accounts) vary by market conditions; fees assume standard retail accounts in UAE’s tax-free short selling market.
61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2. Interactive Brokers – Premier platform for advanced short selling
Min Deposit: $0
Education and Research: ~50 webinars/year, 10+ short selling guides, daily market reports, portfolio analytics
Short Selling Product Range: ~2,300 products (stocks, CFDs, ETFs)
Platform Tools: Short screener, borrow checker, stop-loss/margin alerts
Best For: Advanced short selling with DFSA-regulated stock borrowing and APIs
Key Points
- Offers ~2,300 shortable stocks, CFDs, and ETFs across DFM, ADX, NASDAQ, with $0 ETF commissions.
- Trader Workstation (4.9 score) and IBKR Mobile (4.4 score) deliver short screeners and borrow alerts for pros.
- Arabic interface and AED accounts streamline UAE short trading.
- $0 minimum deposit and free demo account simplify starting.
- Trusted by ~2.5M users, mainly pros trading daily in 2025’s tax-free market.
- DFSA and SCA regulation secures short trading, no Islamic accounts.
Pros:
- ~2,300 shortable assets offer vast bearish options.
- $0 ETF commissions and low $0.005/share fees save costs.
- Short screener and borrow checker enhance precision.
- AED accounts avoid currency conversion fees.
- Free demo account supports risk-free practice.
Cons:
- No Islamic accounts limit Sharia-compliant shorting.
- Platform complexity may challenge beginners.
- $10 withdrawal fee applies to frequent cash-outs.
Note: Spreads (e.g., 0.10% on CFDs) and swap fees ($1.50/lot/day) vary; fees assume standard retail accounts in UAE’s tax-free short selling market.
63.3% of retail investor accounts lose money when trading CFDs with IBKR.
3. AvaTrade – Strong platform for CFD shorting
Min Deposit: $100
Education and Research: ~30 webinars/year, 8+ short selling guides, market analysis, strategy reports
Short Selling Product Range: ~1,250 products (stock CFDs, index CFDs, commodity CFDs, forex, crypto CFDs)
Platform Tools: MT4/5 short trackers, stop-loss alerts, AvaProtect
Best For: CFD shorting with DFSA-regulated low spreads and Islamic accounts
Key Points
- Offers ~1,250 shortable CFDs, including stocks, indices, and forex, with $0 commissions.
- MetaTrader 4/5 (4.6 score) and AvaTradeGO (4.3 score) support short trackers and alerts for retail traders.
- Arabic interface and Islamic accounts fit UAE short sellers.
- $100 minimum deposit and free demo account ease starting.
- Trusted by ~1M users, retail traders trading weekly in 2025.
- DFSA regulation ensures secure short trading.
Pros:
- $0 commissions and 0.15% CFD spreads reduce costs.
- MT4/5 trackers and AvaProtect boost shorting precision.
- Islamic accounts support Sharia-compliant shorting.
- Free demo account for risk-free practice.
- Beginner-friendly platform for CFD shorts.
Cons:
- No stock borrowing limits direct shorting.
- No AED accounts mean 0.5% conversion fees.
Note: Spreads (e.g., 0.15% on CFDs) and swap fees ($1.70/lot/day, waived for Islamic accounts) vary; fees assume standard retail accounts in UAE’s tax-free short selling market.
71% of retail CFD accounts lose money
4. Saxo Bank – Robust platform for global short selling
Min Deposit: $0
Education and Research: ~40 webinars/year, 12+ short selling guides, market reports, analytics tools
Short Selling Product Range: ~200 products (stock CFDs, index CFDs, commodity CFDs, forex, ETF shorts)
Platform Tools: Short analytics dashboard, stop-loss/margin alerts, charting tools
69% of retail investor accounts lose money when trading CFDs with this provider.
Best For: Global short selling with DFSA-regulated AED accounts and analytics
Key Points
- Offers ~200 shortable ETFs and CFDs across DFM, ADX, NASDAQ, with 0.08% ETF commissions.
- SaxoTraderGO (4.6 score) and PRO (4.5 score) deliver short analytics and alerts for pros.
- Arabic interface, AED accounts, and Islamic accounts suit UAE traders.
- $0 minimum deposit and free demo account simplify starting.
- Trusted by ~1M high-net-worth users trading daily in 2025.
- DFSA and SCA regulation secures short trading.
Pros:
- AED accounts and Islamic accounts boost UAE accessibility.
- Short analytics dashboard enhances bearish precision.
- Free demo account for risk-free shorting.
- Solid ETF/CFD range for global shorts.
Cons:
- 0.08% ETF commissions higher than competitors.
- Limited ~200 product range for diverse shorts.
Note: Spreads (e.g., 0.15% on CFDs) and swap fees ($1.80/lot/day, waived for Islamic accounts) vary; fees assume standard retail accounts in UAE’s tax-free short selling market.
69% of retail investor accounts lose money when trading CFDs with this provider.
5. Pepperstone -Fast platform for low-latency CFD shorts
Min Deposit: $0
Education and Research: ~25 webinars/year, 7+ short selling guides, trading tools, risk management reports
Short Selling Product Range: ~1,200 products (stock CFDs, index CFDs, commodity CFDs, forex, crypto CFDs)
Platform Tools: MT4/5 short alerts, cTrader execution, stop-loss tools
Best For: Low-latency short CFDs with DFSA-regulated tight spreads
Key Points
- Offers ~1,200 shortable CFDs, including stocks and indices, with $0 commissions.
- MetaTrader 4/5 (4.5 score) and cTrader (4.3 score) enable fast CFD shorts and alerts.
- Arabic interface and Islamic accounts suit UAE traders.
- $200 minimum deposit and free demo account support starting.
- Trusted by ~400,000 active traders trading daily in 2025.
- DFSA regulation secures short trading.
Pros:
- Ultra-low 0.02% CFD spreads for cost-effective shorts.
- Fast <0.05s CFD execution for quick trades.
- Islamic accounts for Sharia-compliant shorting.
- Free demo account for testing.
Cons:
- No AED accounts mean 0.4% conversion fees.
- No stock borrowing limits direct shorts.
Note: Spreads (e.g., 0.02% on CFDs) and swap fees ($1.50/lot/day, waived for Islamic accounts) vary; fees assume standard retail accounts in UAE’s tax-free short selling market.
74-89% of retail CFD accounts lose money
6. TradeStation – Advanced platform for active short selling
Min Deposit: $0 ($2000 – Margin account; $25000 – Day Trading account; $5000 – Futures account)
Education and Research: ~30 webinars/year, 8+ short selling guides, analytics tools, strategy reports
Short Selling Product Range: ~2,000 products (stocks, CFDs, ETFs)
Platform Tools: Short screener, stop-loss/margin alerts, custom charting
Best For: Active short selling with SEC-regulated charting tools
Key Points
- Offers ~2,000 shortable stocks, CFDs, and ETFs across OTC and NASDAQ, with $0 ETF commissions.
- TradeStation Platform (4.7 score) and Mobile (4.2 score) support short screeners and alerts.
- Arabic interface suits UAE traders, no AED accounts.
- $0 minimum deposit and free demo account ease starting.
- Trusted by ~200,000 active traders trading daily in 2025.
- SEC regulation secures short trading, no Islamic accounts.
Pros:
- $0 ETF commissions and low $0.005/share fees save costs.
- Short screener and charting boost precision.
- Free demo account for risk-free practice.
- Broad stock/CFD range for shorts.
Cons:
- No AED or Islamic accounts limit UAE appeal.
- Platform complexity may deter beginners.
Note: Spreads (e.g., 0.10% on CFDs) and swap fees ($1.50/lot/day) vary; fees assume standard retail accounts in UAE’s tax-free short selling market.
7. Charles Schwab – Reliable platform for research-driven short selling
Min Deposit: $25.000
Education and Research: ~50 webinars/year, 10+ short selling guides, research tools, market insights
Short Selling Product Range: ~6,165 products (stocks, ETFs)
Platform Tools: Short research tools, stop-loss alerts, portfolio analytics
Best For: Research-driven short selling with SEC-regulated platforms
Key Points
- Offers ~6,165 shortable stocks and ETFs across OTC and NASDAQ, with $0 ETF commissions.
- StreetSmart Edge (4.5 score) and Mobile (4.3 score) provide research tools for shorting.
- Arabic interface suits UAE traders, no AED accounts.
- $0 minimum deposit and free demo account simplify starting.
- Trusted by ~35M retail/pro traders trading weekly in 2025.
- SEC regulation secures short trading, no Islamic accounts.
Pros:
- ~6,165 shortable assets offer unmatched variety.
- $0 ETF commissions cut costs.
- Research tools enhance shorting strategies.
- Free demo account for practice.
Cons:
- $6.95/stock trade fees higher than competitors.
- No AED or Islamic accounts limit UAE appeal.
Note: Fees ($6.95/stock trade) vary; assumes standard retail accounts in UAE’s tax-free short selling market.
8. Zacks Trade – Mobile-focused platform for short selling
Min Deposit: 0
Education and Research: ~20 webinars/year, 6+ short selling guides, mobile-focused insights
Short Selling Product Range: ~2,000 products (stocks, ETFs)
Platform Tools: Short trackers, stop-loss/margin alerts, mobile charting
Best For: Mobile short selling with SEC-regulated apps
Key Points
- Offers ~2,000 shortable stocks and ETFs across OTC and NASDAQ, with $0 ETF commissions.
- Zacks Trader (4.3 score) and Mobile (4.4 score) support mobile shorting and alerts.
- Arabic interface suits UAE traders, no AED accounts.
- $2,500 minimum deposit, free demo account for starting.
- Trusted by ~100,000 retail traders trading weekly in 2025.
- SEC regulation secures short trading, no Islamic accounts.
Pros:
- $0 ETF commissions reduce costs.
- Mobile-focused platform (4.4 score) for on-the-go shorts.
- Free demo account for practice.
- Solid stock range for shorting.
Cons:
- $2,500 minimum deposit high for beginners.
- No AED or Islamic accounts limit UAE appeal.
Note: Fees ($0.01/share stocks) vary; assumes standard retail accounts in UAE’s tax-free short selling market.
9. IG Trading – Mobile-optimized platform for CFD short selling
Min Deposit: $5500
Education and Research: ~25 webinars/year, 7+ short selling guides, market updates, strategy insights
Short Selling Product Range: ~100 products (stock CFDs, index CFDs, commodity CFDs, forex, ETF shorts)
Platform Tools: CFD short alerts, stop-loss tools, mobile charting
Best For: Tight-spread short CFDs with FCA-regulated mobile interface
Key Points
- Offers ~100 shortable CFDs and ETFs across OTC and NASDAQ, with $0 CFD commissions.
- IG Platform (4.2 score) and Mobile (4.4 score) excel for mobile CFD shorts.
- Arabic interface suits UAE traders, no AED accounts.
- $250 minimum deposit and free demo account for starting.
- Trusted by ~1M retail traders trading weekly in 2025.
- FCA regulation secures short trading.
Pros:
- Tight 0.05% CFD spreads for cost-effective shorts.
- Mobile-optimized platform (4.4 score) for flexibility.
- Free demo account for testing.
- Decent CFD/ETF range for shorts.
Cons:
- No AED or Islamic accounts limit UAE appeal.
- Limited ~100 product range for diversity.
Note: Spreads (e.g., 0.05% on CFDs) and swap fees ($1.80/lot/day) vary; assumes standard retail accounts in UAE’s tax-free short selling market.
75% of retail CFD accounts lose money
10. XTB – Cost-effective platform for short ETFs
Min Deposit: $0
Research & Education: ~30 webinars/year, 8+ short selling guides, market analysis, charting tools
Short Selling Product Range: ~50 products (stock CFDs, index CFDs, commodity CFDs, forex, ETF shorts)
Platform Tools: Short charting, stop-loss alerts, xStation API
Best For: Cost-effective short ETFs with DFSA-regulated AED accounts
Key Points
- Offers ~50 shortable ETFs and CFDs across DFM, ADX, OTC, with $0 commissions (up to €100K/month).
- xStation 5 (4.3 score) and Mobile (4.5 score) provide short charting and alerts.
- Arabic interface, AED accounts, and Islamic accounts fit UAE traders.
- $0 minimum deposit and free demo account simplify starting.
- Trusted by ~1.2M retail traders trading weekly in 2025.
- DFSA and SCA regulation secures short trading.
Pros:
- $0 ETF/CFD commissions (up to €100K/month) save costs.
- AED accounts and Islamic options boost accessibility.
- Free demo account for risk-free practice.
- Intuitive xStation for shorting.
Cons:
- Small ~50 product range limits diversity.
- 0.15% CFD spreads higher than competitors.
Note: Spreads (e.g., 0.15% on CFDs) and swap fees ($1.50/lot/day, waived for Islamic accounts) vary; fees assume standard retail accounts in UAE’s tax-free short selling market.
81% of CFD retail account lose money
How to Choose a Short Selling Platform
Start short selling in the UAE with confidence in 2025. Whether you’re new to CFD shorts or a pro borrowing stocks, brokers like eToro and Interactive Brokers provide flexible tools and UAE features. Here’s a straightforward guide to selecting a platform for short ETFs, CFDs, and stocks in the tax-free market.
Safety and Regulation
- Local Oversight: Pick DFSA or ADGM-regulated platforms for short security. eToro (ADGM), Interactive Brokers, AvaTrade (DFSA) offer segregated accounts and AML/CFT compliance.
- International Regulation: Choose tier-1 regulators like FCA or SEC for added trust. TradeStation (SEC), IG Trading (FCA), and Pepperstone (ASIC) bring global standards to UAE short traders.
- Investor Protection: Focus on segregated accounts to safeguard funds. IG Trading provides FCA’s £85,000 coverage; XTB offers CySEC’s €20,000. UAE has no local scheme, but DFSA ensures strong protections.
Trading Fees
- Commissions: Look for $0 commissions to lower short costs. eToro and XTB offer $0 on ETFs; Interactive Brokers has low $0.005/share for stocks.
- Spreads: Tight spreads reduce short slippage. Pepperstone and IG Trading lead at 0.02–0.05%; AvaTrade at 0.15% suits retail shorts.
- Leverage: Check leverage for amplified shorts, capped at 20:1. eToro offers 10:1 for safety; Interactive Brokers and Saxo Bank provide up to 20:1.
Non-Trading Fees
- Inactivity Fees: Avoid idle account charges. Charles Schwab has none; eToro charges $10/month after 12 months, AvaTrade $50/quarter after 3.
- Withdrawal Fees: Free withdrawals preserve gains. Pepperstone and XTB charge $0; eToro’s $5 may affect frequent payouts.
- Swap Fees: Monitor overnight costs for long shorts. eToro, AvaTrade, and Pepperstone waive swaps for Islamic accounts, key for UAE traders.
Account Setup and Accessibility
- Minimum Deposit: Low entry speeds shorts. Interactive Brokers and Saxo Bank require $0; eToro’s $100 is beginner-friendly.
- Account Opening: Quick KYC gets you shorting fast. eToro and AvaTrade complete in 1-2 days; Interactive Brokers takes 1-3 for margin access.
- UAE-Friendly Features: Prioritize AED accounts (Interactive Brokers, Saxo Bank, XTB), Arabic interfaces (all brokers), and Islamic accounts (eToro, AvaTrade, Pepperstone, XTB) for local convenience.
Trading Platforms
- Usability: Select platforms with real-time short data. eToro’s CopyTrader (4.8 mobile score) suits beginners; Interactive Brokers’ TWS (4.9 score) is pro-level.
- Mobile Apps: High-rated apps allow mobile shorts. eToro scores 4.8; IG Trading’s 4.4 excels for CFDs, all with Arabic support.
- Tools: Seek short essentials like borrow checkers. Interactive Brokers and TradeStation offer screener and alerts; XTB integrates TradingView for strategy testing.
Assets & Markets
- Asset Range: Wider options enable diverse shorts. Charles Schwab leads with ~6,165 (stocks/ETFs); Interactive Brokers ~2,300; eToro ~100 CFDs/ETFs.
- Local Assets: DFM/ADX ETFs (Interactive Brokers, Saxo Bank, XTB) for UAE-focused shorts.
- Global Access: Short NASDAQ/NYSE CFDs (Pepperstone, IG Trading) or OTC stocks (all brokers) for multi-market plays.
User Base
- Popularity: Larger bases show trust. eToro (38M) and Charles Schwab (35M) lead; Interactive Brokers (~2.5M) attracts pros.
- Beginner-Friendliness: eToro and Zacks Trade cater to new short sellers with low costs and easy tools.
- Sharia-Compliant Appeal: Islamic accounts (eToro, AvaTrade, Pepperstone, XTB) appeal to local traders for swap-free shorts.
Disclaimer: Data reflects 2025 standards and may vary. Verify with brokers for updates, including risks like short squeezes or volatility in UAE’s tax-free market.
Taxation for Short Selling
Maximize your short selling profits in the UAE’s tax-free hub in 2025. Whether borrowing stocks on Interactive Brokers or shorting CFDs with eToro, zero taxes boost your gains. Explore our UAE tax guide for details. Here’s what short sellers need to know:
- No Capital Gains Tax: Profits from short trades on stocks, CFDs, or ETFs are tax-free in the UAE, unlike the UK’s 20% or US’s 15–20% CGT.
- No Income Tax: Earnings from short selling, like CFD gains on AvaTrade or dividend capture shorts on eToro, face no personal income tax, enhancing returns.
- Broker Reporting: UAE brokers like AvaTrade and XTB don’t report locally due to no personal taxes. International ones like Interactive Brokers may report to IRS/HMRC for expats—check policies.
- Corporate Tax: Businesses with profits over AED 375,000 pay 9% since 2023. Individual short sellers, even with AED 500,000+ gains, remain exempt unless business-registered.
- VAT on Fees: Broker fees (e.g., Interactive Brokers’ $0.005/share) typically incur no 5% VAT. Borrow fees for short stocks are exempt as financial services.
- Expat Tax Obligations: Expats (80% of UAE population) might owe home taxes, like US’s 15–20% CGT on short profits, especially with reporting brokers like TradeStation—verify residency.
- Tax Treatment by Product: Short CFDs, stocks, ETFs, and forex trades are tax-free. ETF short dividends could face foreign withholding (e.g., 30% on US assets).
- Track Transactions: Log your short trades and consult a tax pro for complex cases, especially expats or high-volume shorts.
Disclaimer: Tax info is based on 2025 UAE regulations and may vary. Consult a professional for personalized advice, especially expat obligations or complex short selling scenarios.
How to Invest in Short Selling
Jump into short selling in the UAE’s tax-free hub in 2025 with confidence. Whether you’re trying simple CFD shorts or advanced stock borrows, brokers like eToro and Interactive Brokers offer flexible tools and easy access. Follow this step-by-step guide to profit from falling markets with CFDs, stocks, ETFs, and more.
Open an Account
- Pick a Platform: Match your style, eToro’s CopyTrader suits beginners, Interactive Brokers’ TWS is great for pros, AvaTrade’s MT4/5 fits CFD shorts. All setups are free.
- Verify Identity: Submit Emirates ID or passport for KYC, done in 1-2 days with eToro or Pepperstone, 1-3 days for Interactive Brokers, no extra fees.
- Fund Account: Deposit via bank, card, or e-wallets like PayPal or Skrill. Minimums vary: eToro $100, Interactive Brokers $0, AvaTrade $100, Saxo Bank $0, Pepperstone $200, TradeStation $0, Charles Schwab $0, Zacks Trade $2,500, IG Trading $250, XTB $0. Most brokers offer free deposits via card; bank wires may incur fees for small amounts.
Select Assets
- Research Assets: Use free tools to pick short targets. eToro’s CopyTrader follows pro shorts, Interactive Brokers’ screener filters volatility, AvaTrade provides market analysis.
- Diversify: Balance across stock CFDs, index CFDs, commodity CFDs, ETF shorts, and forex to manage risks, available on IG Trading and Saxo Bank.
- Keep it Cost-Effective: Choose $0 commission platforms like eToro for CFDs or Interactive Brokers for low $0.005/share stock shorts to maximize profitability.
Place Trades
- Market Orders: Short at current prices with $0 commissions. eToro and IG Trading execute CFD shorts fast, ideal for retail traders.
- Limit Orders: Set entry/exit for precision. Interactive Brokers and Saxo Bank offer free limit orders for CFDs and stocks, enhancing UAE control.
- Borrow and Short: Use borrow checkers for stocks on Interactive Brokers or CFD shorts on Pepperstone for hands-off execution.
Monitor and Rebalance
- Track Performance: Watch short positions with free dashboards. eToro’s feeds, XTB’s xStation 5, and Interactive Brokers’ analytics give real-time updates.
- Rebalance Portfolio: Adjust shorts to stay diversified, shifting from stock borrows on TradeStation to CFDs on Pepperstone as markets shift.
- Stay Compliant: No tax filing for individuals in UAE’s tax-free market, but businesses log profits for 9% corporate tax over AED 375,000.
Leverage Free Tools
- Copy Trading: Mirror pro shorts for free with eToro’s CopyTrader, perfect for beginners learning CFD techniques.
- Screeners and Analytics: Interactive Brokers and Saxo Bank offer free short screeners; XTB’s TradingView refines bearish strategies cost-free.
- Alerts and Research: Set free price/borrow alerts on XTB or Admiral Markets. AvaTrade’s webinars and Zacks Trade’s guides sharpen your short skills affordably.
Disclaimer: Trading strategies and platform features are based on 2025 data and may vary. Verify with platforms for updates, including risks like short squeezes or volatility in UAE’s tax-free market.
Short Selling Legality in UAE
Short sell with confidence in the UAE in 2025, where tight laws ensure secure, Sharia-friendly bearish trades. From eToro’s CFDs to Interactive Brokers’ stock borrows, licensed brokers keep it affordable. Check our UAE trading regulations guide to stay compliant in this tax-free hub.
Regulatory Bodies
- Dubai Financial Services Authority (DFSA): Oversees short CFDs and stock borrowing in DIFC, like Interactive Brokers and AvaTrade, enforcing AML/CFT, borrow checks, and short squeeze disclosures.
- Abu Dhabi Global Market (ADGM) FSRA: Manages Sharia-compliant shorting per AAOIFI standards for brokers like eToro, ensuring KYC and compliance.
- Securities and Commodities Authority (SCA): Licenses DFM/ADX for short ETFs, mandating 25–50% margins and position reporting for XTB and eToro.
Broker Licensing
- Local Licenses: DFSA or SCA required for shorting. eToro (ADGM/SCA), Interactive Brokers (DFSA), and Pepperstone (DFSA) ensure compliant CFD and stock shorts, with SCA for DFM/ADX.
- International Brokers: FCA-regulated IG Trading and SEC-regulated Charles Schwab comply with UAE KYC/AML for short trades.
- Short-Specific Compliance: Verify licenses via DFSA/SCA registries to ensure 2023 Due Diligence compliance for borrow verification and avoid unregulated platforms.
Investor Protections
- Segregated Accounts: All top brokers, like eToro and Saxo Bank, offer free segregated accounts, safeguarding capital during short squeezes.
- KYC Compliance: Emirates ID or passport required, a free process ensuring legal shorting with AML checks for high-volume trades.
- No Local Compensation Scheme: Unlike FCA’s £85,000 or CySEC’s €20,000, UAE has none, but DFSA brokers like XTB provide strong safeguards.
Legal Trading Practices
- Allowed: UAE residents can short CFDs, ETFs, and stocks on licensed platforms. Islamic accounts on eToro, AvaTrade, and XTB ensure swap-free shorting.
- Prohibited: Naked shorting, insider trading, or manipulation are illegal, with DFSA/SCA penalties protecting DFM/ADX markets.
- Tax: Short profits are tax-free for individuals; businesses pay 9% corporate tax above AED 375,000, with no VAT on fees.
Broker Considerations
- Compliance Support: DFSA brokers like Pepperstone handle shorting KYC/AML free, ensuring legal trades.
- Transparency: Licensed brokers like eToro publish ADGM status, building trust for short selling.
- Cost Efficiency: $0 commission platforms like XTB and low-spread brokers like Pepperstone (0.02%) keep legal shorting budget-friendly.
Disclaimer: Legal and regulatory information is based on 2025 UAE laws and may vary. Verify with regulators or brokers for updates to ensure compliance in short selling.
Conclusion
In 2025, UAE’s short selling platforms make bearish trades a breeze! eToro leads with beginner-friendly CFDs and CopyTrader, while Interactive Brokers excels for stock borrowing pros in this tax-free hub. With DFSA oversight ensuring safety, start shorting with eToro or explore our rankings to dive into UAE’s dynamic short selling scene.
Disclaimer: Trading involves risks; past performance doesn’t guarantee future results. Consult a financial advisor before short selling.
Short Selling Platforms in UAE Summary
1eToro 4.9 Your capital is at risk.
Best for beginner short selling with ADGM-regulated CFDs and CopyTrader
2Interactive Brokers 4.8 Your capital is at risk.
Best for advanced short selling with DFSA-regulated stock borrowing and APIs
3AvaTrade 4.7 Your capital is at risk.
Best for CFD shorting with DFSA-regulated low spreads and Islamic accounts
6TradeStation 4.4 Your capital is at risk.
Best for active short selling with SEC-regulated charting tools
7Charles Schwab 4.3 Your capital is at risk.
Best for research-driven short selling with SEC-regulated platforms
FAQ
Got short selling questions for UAE in 2025? Here’s straight talk on basics, risks, and more to get you started in this tax-free market.
What is short selling?
Short selling is betting on falling prices by borrowing stocks or using CFDs, then buying back lower to profit, offered by brokers like eToro.
Is short selling legal in the UAE?
Yes, it’s legal with DFSA/SCA brokers like Interactive Brokers, as long as you follow borrow rules and avoid naked shorts.
How risky is short selling?
It’s risky, losses can be unlimited if prices surge, use stop-loss tools on platforms like AvaTrade to manage squeeze risks.
What is a short squeeze?
A short squeeze happens when prices spike, forcing short sellers to buy back at a loss, watch alerts on Pepperstone to stay safe.
Which brokers are best for short selling in UAE?
eToro leads for CFD shorts, Interactive Brokers for stock borrowing, see our rankings for top picks.
Can I short sell with Islamic accounts in UAE?
Yes, eToro and AvaTrade offer swap-free Islamic accounts for shorting, check our Islamic trading guide.
What assets can I short in UAE?
You can short CFDs, ETFs, and stocks on platforms like Saxo Bank, explore options in our stocks and ETFs guide.
How do I start short selling in UAE?
Open an account with eToro, fund it, and use CFDs or borrow stocks via Interactive Brokers, follow our guide for steps.
Why do short sellers have to borrow stocks?
Borrowing stocks on platforms like Interactive Brokers ensures you have shares to sell short, required for non-CFD shorting to avoid naked trades.
Is short selling a bad practice?
No, it’s a legit strategy when regulated, like on eToro, but it’s risky due to potential losses, so use with caution.
Can I sell short with a regular trading account?
CFDs on eToro work with standard accounts, but stock shorting on Interactive Brokers needs a margin account for borrowing.
Disclaimer: Trading involves risks; past performance doesn’t guarantee future results. Consult a financial advisor before short selling.
Everything you find on Business24-7 is based on trustworthy data and impartial analysis. We combine over 11 years of financial expertise with valuable reader feedback to provide accurate insights. Learn more about our methodology.
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