Cobra Trading Review 2021: General Info
Cobra Trading is a US-based online brokerage firm established in 2003. The broker provides three directly accessible trading platforms on various account types to meet the needs of individual traders and businesses.
Cobra Trading accounts have tiered pricing for stocks and options. For those who want to trade futures and foreign exchange, the broker also has a sister brokerage firm, Cobra Trading’s Venom.
The group uses Wedbush Securities and Interactive Brokers as their clearing companies. In the Cobra Trading review, we will emphasize all the basic aspects and functions of the broker to help future traders decide whether to trade with Cobra.
Safety and Regulation
Cobra is a highly secure and supervised brokerage company. Cobra Trading is regulated by SEC, SIPC, FINRA, and NFA.
Securities clients of SIPC members can receive up to USD 500,000 in protection (including USD 250,000 in cash claims).
In addition to the protection of USD 500,000 provided by SIPC, clients conducting liquidation at Wedbush Securities can also purchase additional insurance from Lloyd’s of London. Each client can have up to USD 25,000,000 in cash and securities, but the total loss limit is USD 100,000,000. The bond covers a cash credit balance of up to US$900,000, and the total cash balance is US$1,150,000.
Also, Cobra Trading follows industry-standard security requirements, such as SSL encryption and login security codes or authentication.
Cobra Trading provides the ability to trade stocks and options by directly accessing the place where the exchange order flow is processed.
In order to trade more types of instruments, Venom of Cobra Trading provides US stocks, bonds, ETFs, options, futures, and foreign exchange.
Trading Platforms at Cobra Trading
Speaking of trading platforms, Cobra Trading really is heaven with its wide range of options and customizable tools.
DAS Trader Pro
For multi-tool trading and powerful stock and options trading, DAS Trader Pro (direct access software) provides direct order routes, multiple stop-loss types, multiple account management, advanced charts with more than 30 technical studies, hotkey functions, real-time market news, and market scanner.
TraderPro is a powerful trading system, equipped with customizable functions and advanced charting functions, only for non-physical and non-professional users.
The platform is based on the Sterling Trader framework and comes with real-time level 2 market data, hot keys, short position monitors, stop-loss orders, custom alerts, news, and a watch list.
As one of the leading direct access platforms for stock and options trading, Sterling TraderPro provides advanced trading services for individual traders.
Features include secondary market data, portfolio management, package trading, hot keys, stop-loss orders, advanced charting tools, custom alerts, news, and watch lists.
Mobile trading is only available when using iDAS powered by DAS Trader Pro. The monthly cost of this addition is $30/month.
The Venom division does provide a proprietary mobile application that allows you to trade stocks, options, and futures using real-time streaming quotes and charts. Mobile users can set price reminders and access complete account management on iOS and Android devices.
Cobra Trading provides a variety of account types to suit different types of traders, including individual, joint, company, LLC, partnership, and trust accounts.
Please note that the minimum initial deposit and account maintenance requirements are not suitable for every beginner.
The initial deposit of the domestic day trading account is US$30,000, and the maintenance balance required to keep the account open is US$25,000.
International day trading accounts require an initial deposit of US$30,000 and a balance of US$25,000 to keep the account open.
Those who are not eligible for a Cobra Trading account may need to consider a Venom account, with a minimum of $3,000 for personal accounts.
Pricing and Fees
Cobra Trading stock trading commissions usually start from $0.004 per share.
According to the US Securities and Exchange Commission regulations, if the funds in the trader’s account are less than 25,000 USD, they can execute a three-day transaction within five days at most. Those who want to trade more frequently need to have at least $25,000 in their account. Once the value of your account is less than $25,000, the SEC’s PDT rules will take effect, and your account will be locked for day trading activities. This explains why the minimum account amount for Cobra Trading is 27,000 USD.
You can also use Cobra Trading to trade options, paying $0.50 per contract and per side. All Cobra Trading stocks and options transactions have a minimum amount of $1 per transaction and are subject to regulatory fees, ECN fees, and rebates. Stocks and options are cleared through Wedbush Securities, one of the largest securities companies in the United States.
Cobra Trading’s retail leverage is 1:4 in day trading and 1:2 in overnight trading. If you use an IRA or cash account for transactions, the purchasing power is limited to the available cash.
Deposit and Withdrawal
There are several funding options available at Cobra Trading: wire transfer, ACH bank transfer, or check.
Funds in both methods must be paid to the broker’s clearing company Wedbush Securities. Traders can also transfer accounts from another company (ACAT) by contacting customer support and obtaining an account transfer form.
Please note that there is a $20 fee for wire transfer deposits and withdrawals. The fee for international wire transfers is $25.
Cobra Trading’s website is available only in English. You can contact Cobra Trading via email, phone number, or via live chat service. Business hours are 07:00 – 16:30 CST from Monday to Friday. The broker is closed on weekends.
Address: 3008 E. Hebron Pkwy Building 400 Carrollton, TX 75010.
Email: [email protected]
Cobra Trading Review: Final thoughts
To sum up, Cobra Trading is an excellent platform for those you are interested in investing and trading stocks.
Even though their services are pretty pricy, the brokerage is an excellent place for self-aware and committed traders.
Cobra Trading offers fast and rich tools for trading and additional educational materials to support every level of trader. Thus, Cobra Trading stands out on the market, and we highly recommend its safe and secure environment to fund your investments.