Cobra Trading Review
Cobra Trading is a direct market access online trading broker that offers a variety of flexible and powerful trading platforms and tools. They provide competitively priced stock and options trading fees with a $1 trade minimum.
Founded in 2013, Cobra Trading is for professional stock traders looking for a personalised service. CEO Chadd Hessing states that “Our mission is to provide active traders the highest level of service, systems and trade support at a very competitive price.”
Pros / Cons
- Strict regulation
- Securities Investor Protection Corporation (SIPC)
- Premium trading platforms & tools
- Minimum $30,000 deposit
- No forex, CFD or crypto trading
- No MetaTrader platform
- Limited funding options
- Multiple fees & charges
Cobra Trading Regulation
Cobra Trading is a member of the Financial Industry Regulatory Authority (FINRA), National Futures Association (NFA) and Securities Investor Protection Corporation (SIPC) scheme in the United States.
FINRA lets investors and firms participate in the financial markets with confidence by helping to safeguard its integrity. It is a non-governmental organization that regulates member brokerage firms and exchange markets.
The NFA is the self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency and OTC derivatives.
The SIPC is an investor protection scheme that was established to help protect clients against the loss of cash and securities in case an online broker cannot fulfil their financial obligations. The SIPC protection is limited to $500,000 with a $250,000 limit for cash.
Most Cobra Trading accounts are opened through Wedbush Securities. In addition to the $500,000 protection provided by SIPC, clients clearing at Wedbush Securities have additional coverage purchased from Lloyd’s of London for up to $25,000,000 in cash and securities for each client, subject to an aggregate loss limit of $100,000,000. This bond covers cash credit balances to a maximum of $900,000 for a total of $1,150,000 in cash balances. Neither the SIPC or any additional coverage will protect against market loss.
Cobra Trading Countries
Although Cobra Trading is a US brokerage firm that primarily serves US traders, they can accept clients from a limited number of other countries. You can contact them to see if they are currently providing services in your region.
Cobra Trading Platforms
Cobra Trading have a selection of powerful and advanced trading platforms that are flexible, customisable and contain a vast array of built-in tools for advanced analytics. The platforms offer level-2 pricing and real-time charting, with direct market access and support for one-click trading.
They do charge market data, software and routing fees. These can add up and make them an expensive option compared to some other online brokers. There are trials if you wish to test drive the platforms to see which you prefer.
Cobra TraderPro is the most inexpensive option for those who do not want to pay a premium for the trading platform yet still have the required tools and functions needed for efficient trading. This platform is based on the Sterling Trader framework and has an abundance of useful features for active traders and investors. The Cobra TraderPro platform contains real-time Level 2 market data, direct market access, advanced charting, hot keys, and a short locate monitor.
DAS Trader offers a real-time environment that can facilitate multiple advanced order types, basket trading, detailed charting, and multi-account management. The DAS Trader platform has a range of powerful features built-in to one single platform including advanced analytical tools, multi-instrument trading, and portfolio management.
The Sterling Trader platform provides direct market access for trading equities and options. The platform can be fully customised to suit differing trader needs and offers a smooth and intuitive trading environment.
RealTick® EMS is the premier online trading platform that offers direct-access research, real-time market data, news, in-depth analytics, and a vast array of implemented sophisticated trading tools.
- Cobra TraderPro – $100 (Waived if you trade 200,000 shares/month)
- DAS Trader Pro – $125 (Waived if you trade 250,000 shares/month)
- Sterling Trader Pro – $200/$230 with options (Waived if you trade 300,000 shares/month)
- RealTick Express – $200 (Waived if you trade 300,000 shares/month)
- RealTick PRO – $350 (Waived if you trade 500,000 shares/month)
Cobra Trading Tools & Education
Unfortunately, this brokerage is lacking in any educational materials or additional trading tools. Their trading blog and YouTube channel are thin in content and not frequently updated.
Cobra Trading Instruments
Cobra Trading offers traders stocks and options trading. This is very limited compared to other online broker who offer forex, CFD and crypto trading. They do allow after hours trading both pre- and post-market. Trading hours are 6:00 am EST thru 8:00 pm EST.
Stocks (per share)
- $.004 – 0 to 250K shares per month
- $.0035 – 250K to 1M shares per month
- $.003 – 1M to 2M shares per month
- $.002 – 2M to 10M shares per month
Options (per contract)
- $.50 – 0 to 2,000 contracts per month
- $.40 – 2,001 to 10,000 contracts per month
- $.30 – 10,000 contracts +
Please note that rates and fees are subject to change at any time. There may be some fees not covered or outdated in this Cobra Trading review, so ensure that you check the official brokerage website for the latest charges.
Cobra Trading Accounts & Fees
Cobra Trading have a variety of accounts to choose from depending on your individual needs. These are the common accounts offered by most US online brokerages.
- Individual Accounts
- Joint Accounts
- Corporate Accounts
- LLC Accounts
- Partnership Accounts
- Trust Accounts
- Retirement Accounts
- Margin accounts (1:4 for day trading, 1:2 for overnight)
The minimum account opening deposits for day trading accounts are as follows:
United States residents:
- $30,000 to open account
- $25,000 minimum balance must be maintained in each day-trading account
Non-United States residents:
- $50,000 to open account
- $25,000 minimum balance must be maintained in each day-trading account
If you are trading in an IRA or cash account your buying power is limited to the cash that you have available in the account. If you have a retail margin account then the buying power for intraday trades (limited to 3 intraday trades in a rolling 5-day period) will be 4 times the cash available in your account whilst overnight trades will be 2 times your available cash. Be aware that margin trading is very risky and you should have a clear understanding of the risks involved.
Cobra Trading Customer Service
Cobra Trading are committed to offering personalised customer service for all clients regardless of their experience or level of investment. Their goal is to provide clients with direct access to representatives so that they can answer your questions in a prompt and professional manner.
Support is offered during business hours which are Monday to Friday from 7AM – 4:30PM. The friendly customer service team can be reached via telephone, email or online chat if you have a question you would like an answer to immediately.
Cobra Trading Deposit & Withdrawal
Cobra Trading brokerage accounts can be funded via wire transfer, check, ACH transfer or account transfer from another broker (ACAT) using the account transfer form. ACAT transfers typically take between 3-8 business days to complete depending on which broker currently holds the account.
Some fees may be charged when using certain payment methods. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant.
Accounts are offered in USD, thus if you plan to fund with another currency, conversion fees will apply. Funds can take a few days to process and there may be additional fees.
It would be considered useful to many traders if they offered credit/debit card and online payment processors as additional funding options.
Cobra Trading Account Opening
You can select the “open account” button on the Cobra Trading official website to start the account opening process. You will need to provide some personal information and answer a questionnaire regarding your trading experience. This is for them to check each potential client’s suitability for the trading products and services offered. Cobra Trading can also mail or email you an account opening packet.
During the account opening process you will need to have some documents handy for proof of identification and address. This can be a passport, driver’s license, utility bill, bank statement, etc.
Once your account has been verified by the accounts team, you will receive a confirmation email with your live account details. If they require any further information from you whilst reviewing your application they will be in touch. They are also happy to assist you should you need them when you are filling out the application. It can take a few business days for your account be approved.
Cobra Trading Conclusion
Cobra Trading is a regulated US brokerage for professional stock and options traders who require premium platforms and are willing to pay for them. The platforms are powerful, fully customisable and contain a vast array of analytical tools.
This broker offers a limited selection of trading instruments with no forex, CFD or cryptocurrency trading. Educational materials are lacking whilst there are no online payment processor options. The minimum deposit requirement of $30,000 is also very high compared to most online trading brokers.
Day trading can be extremely risky. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading.