Established in 2003, Cobra Trading Inc. is a U.S.-based brokerage specializing in equities and options contracts, aimed at empowering active day traders. Regulated by the NFA and a member of FINRA and SIPC, Cobra Trading offers advanced trading platforms and exceptional 24/5 customer service, ensuring traders can execute their strategies efficiently.
Overview of Cobra Trading
- Founded: 2003
- Regulation: NFA, SIPC, FINRA
- Trading platforms: DAS Trader Pro, Sterling Trader Pro, Cobra Trader Pro
- Minimum deposit: $27,000 for U.S. residents; $30,000 for international accounts
- Account types: Individual, IRA, LLC, Joint, Corporate, Trust and Partnership
- Commission structure: Tiered fees based on monthly trading volume, ranging from $0.0015 to $0.003 per share for equities and $0.30 to $0.50 per contract for options.
- Customer support is available via email, phone, and live chat during business hours.
Cobra Trading is legit.
Yes, Cobra Trading is a legitimate and regulated broker. It is regulated by the National Futures Association NFA and is a member of the Securities Investor Protection Corporation SIPC. This regulatory oversight ensures a certain level of protection for clients in case of broker failure. SIPC provides basic insurance coverage of up to $500,000 per customer, with a $250,000 cash limit.
Wedbush Securities offers excess SIPC coverage of up to $25 million per client for cash and securities subject to total limits. It is important to note that this coverage protects against broker failures but does not guarantee against investment losses.
Steps for opening an account with Cobra Trading
- Visit the Cobra Trading website.
- Fill in your details.
- Confirm that you meet the minimum deposit requirements.
- Choose your tax status and entity type.
- Select your trading preferences.
- Optionally, transfer funds from another broker.
- Enter any promotional codes if applicable.
- Agree to the terms and conditions.
- Start trading!
Asset types
- Stocks
- Option trade on the Cobra Trading platform
- Bonds, ETFs, Futures & Forex offered through Venom by Cobra Trading
Trading platform
- DAS Trader Pro – advanced features for experienced traders
- Sterling Trader Pro – the customizable platform for active traders
- Cobra Trader Pro – cost-effective option with basic features
- Demo account with real-time data access for two weeks
Additional trading tools
- Real-time market scanners
- Custom alerts
- Integrated market news
- Portfolio management tools
Cobra Trading account types
- Individual Retirement account IRA – Traditional and Roth options available.
- Corporate account
- LLC Limited Liability Company account
- Trust account
- Partnership account
- Joint JTWROS account
- Miscellaneous account for less common ownership types
- Standard account minimum deposit: $25,000
- Pattern Day Trader PDT account US residents only, minimum deposit: $27,000
- Cobra Trading International account minimum deposit: $30,000
Deposit and withdrawal methods
Deposit: Wire transfers, and ACH.
Withdrawal: Wire transfers, ACH, and outbound transfer fees apply.
Cobra Trading fees and commissions
| Fee Type | Description |
|---|---|
| Equity commissions | Tiered based on monthly trading volume of $0.0015 – $0.003 per share |
| Option commissions | Tiered based on monthly trading volume of $0.30 – $0.50 per contract |
| Option exchange fees | $0.05 to $0.55 per contract |
| Software fees | $100 to $150 per month may be waived for high-volume traders |
| Market data fees | Start at $18/month |
| Routing fees | Vary based on order size and routing destination. |
| Account inactivity fee | $15/quarter |
| ACAT transfer outgoing | $95 |
| Annual IRA fee | $35 |
Customer support
Email: info@cobratrading.com same-day response
Phone: 877-792-6272 – toll-free
Live Chat during business hours: Mon-Fri 7 AM – 4:30 CST
Pros and cons of Cobra Trading
| Pros | Cons |
| Offers Direct Market Access DMA for better order control | High minimum deposit: $27,000 to $30,000, limiting access for beginners or casual investors |
| Provides a variety of trading platforms: DAS Trader Pro, Sterling Trader Pro, Cobra Trader Pro | Minimum balance requirement: $10,000 to $25,000, potentially burdensome for some traders |
| Deep Short Locate Inventory for short-selling strategies | Platform usage fees: $100 to $150 monthly, unless waived for high-volume traders |
| Regulated by NFA, FINRA, and SIPC, providing investor protection | Market data costs: Starting at $18 per month, adding to expenses |
| Customer Support via email, phone, and live chat during business hours | Complex platforms may overwhelm beginner traders |
| Fee Waivers for high-volume traders | Limited live chat hours: Only available during business hours |
Conclusion
Cobra Trading caters to experienced traders, especially those interested in short selling, with its direct market access and sophisticated trading platforms. Cobra Trading might not be the best choice for beginners due to the complex platform and high minimum deposit.
Pro Tips
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