Which Stock Lots to Sell First?

How to Decide Which Stock Lots to Sell First?

When deciding which stock lots to sell first – the first step is to follow decision making guide or framework such as the one I am sharing here

1. Check Tax Implications First

If you are running a taxable account consider selling the highest-cost lots first so as to minimize capital gains. For this you can implement the FIFO (First In, First Out) approach where oldest shares qualify for long-term capital gains rates if held for more than a year.

You can also consider the LIFO approach where you sell off the newest shares first so as to manage short-term tax liabilities.

2. Align With Your Market Outlook

Are you bullish in your market outlook – then if market conditions align with your outlook consider selling the lowest-cost lots to lock in profits. If you are bearish in your outlook you can consider selling the highest-cost lots to preserve capital.

3. Match Your Trading Style

The answer to the question of which stock lots to sell first must also be guided by your trading style. IF you are an active trader then the LIFO (last in, last out) approach typically works best. If you are a long-term investor you may want to consider the FIFO approach or specific ID for tax optimization

4. Use Broker Tools to Compare

You should also make use of broker tools to compare and analyze cost basis and tax impact using. For this you can make use of Pepperstone‘s advanced reporting, IC Markets‘ trade history as well as TradingView’s portfolio tracking.

5. Final Checklist Before Selling

Best All-Around Strategy

For most traders and investors, selling highest-cost lots first provides the best balance of tax efficiency and flexibility.

Remember to always consult a tax professional to advise you comprehensively for complex stock trading situations.

Online Stock Trading

Did you know that it’s possible to trade stocks online at zero commission? How so? The short answer is that several stock trading companies now offer commission-free stock trading to traders, typically as part of promotional offers or for certain account types.

Like they always say — there are no free lunches! The catch is that traders need to meet certain minimum deposit requirements or qualify for limited-time promotions to access these benefits.

Free Online Stock Trading Explained

What’s free in this case is the platform’s commission on trades. In a typical trading account, brokers charge commissions and other service costs to execute trades on behalf of the trader. If you qualify for a free trading offer, these costs are waived, at least for a certain period or under specific conditions.

Forex and stock brokers alike benefit from clients with substantial risk capital to invest, which is why they often offer preferential treatment and incentives like commission-free trading.

This is especially true for established platforms such as Pepperstone and IC Markets, which frequently provide promotional zero-commission trading periods or stock CFD opportunities with tight spreads for active traders.

The Evolution of Free Stock Trading Offers

In the past, brokers like E*TRADE and Charles Schwab would offer free trades for traders who deposited between $10,000 and $50,000. These promotions often gave traders a window of 60 to 180 days to trade without paying commissions.

However, by 2024, the trading industry has evolved significantly. Modern platforms like Pepperstone, IC Markets, and TradingView offer integrated solutions combining affordable pricing, advanced analytics, and high-speed execution — often with ongoing commission-free options on selected stock CFDs and other instruments.

For traders with solid risk capital, these brokers remain competitive, offering both free trading promotions and consistently low-cost trading environments, particularly when paired with analytical tools such as TradingView.

How to Take Advantage of Free Stock Trading

If you’re a resourceful trader managing multiple brokerage accounts, it’s possible to leverage various promotional offers by moving capital between platforms to benefit from commission-free periods. However, it’s important to be cautious, as transferring accounts may involve additional costs.

A more stable long-term strategy is to partner with a consistently low-cost broker like FP Markets, Vantage, or Exness, or choose a platform with reliable trading conditions and platform integrations.

TradingView, for example, integrates directly with Pepperstone and IC Markets, allowing you to execute trades directly from its professional-grade charts.

Factors to Consider Before Choosing a Broker

When choosing a trading broker, it’s essential not to focus solely on the cost of trades. Other important considerations include:

• Quality of customer service
  
• Platform integrations and third-party tool compatibility (such as TradingView)
  
• Range of tradable instruments
  
• Speed of execution and spread competitiveness
  
• Regulation and fund safety
  

Many modern brokers no longer rely heavily on short-term promotional campaigns but rather offer consistently competitive fee structures and platform enhancements to retain clients.

Reliable Free and Discounted Trading Platforms

If you’re considering free or affordable stock trading options today, these platforms are worth exploring:

• Pepperstone — Commission-free trading on selected stock CFDs and indices, excellent for active traders and investors who value high-speed execution and reliable customer support.
  
• IC Markets — Known for zero-commission forex and stock CFD options with ultra-low spreads.
  
• TradingView — Not a broker, but a powerful charting and analytics platform that integrates directly with brokers like Pepperstone and IC Markets for seamless trade execution.
  
• FP Markets, Exness, Vantage, and AvaTrade — Consistently low-fee platforms with reliable customer support and competitive trading conditions.
  
• eToro — Well-known for commission-free stock trading and social trading capabilities, though best suited for longer-term investors.
  

Pro Tip: Always check the latest promotions, deposit requirements, and terms of service before opening a new trading account.

FAQ: Stock Selling Questions Answered

Which shares of stock should I sell first?

When deciding which stock lots to sell, you need to consider tax implications, investment performance, and market conditions. Many traders prefer to sell high-cost lots first (HIFO- highest in first out) as a way to minimise capital gains taxes or sell losing positions to offset other gains.

If you are an active trader you can use platforms like Pepperstone or IC Markets to monitor positions in real-time via TradingView charts to decide when to exit.

Should I sell HIFO or FIFO?

HIFO (Highest In, First Out) and FIFO (First In, First Out) are two inventory valuation methods that affect tax outcomes. HIFO prioritises selling the most expensive lots first, reducing taxable gains.

FIFO sells the earliest purchased lots first, which can result in higher tax liabilities if those positions appreciated. Many modern trading platforms, including those compatible with TradingView, allow traders to set preferred lot-matching methods.

What is the best order to sell a stock?

The optimal order to sell stocks depends on your investment strategy. Short-term traders might sell positions showing technical weakness on TradingView charts, while long-term investors may sell based on valuation metrics or capital gains strategies.

If possible, aim to sell positions with the least tax liability first or those that no longer align with your trading plan.

What is the 7% rule in stocks?

The 7% rule is a risk management principle often used by position traders. The rule suggests that if a stock declines by 7% from its purchase price, the trader should sell the position to prevent further losses.

This rule helps protect capital and is easily applied using stop-loss orders on platforms like Pepperstone or IC Markets, especially when combined with TradingView’s real-time chart alerts.

Final Thoughts

Commission-free and low-cost trading opportunities have become more accessible in 2024, with brokers like Pepperstone, IC Markets, and TradingView leading the way in affordability and professional trading tools.

While free stock trading promotions are less common in their old form, the availability of consistently competitive trading conditions makes it easier for retail traders to participate in the markets without excessive costs.

Before selecting a broker, consider more than just the promotional offer — prioritise platform reliability, tool integrations, regulation, and customer support. And when it comes to selling stocks, always factor in tax implications, technical signals, and your broader financial goals.