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2 years agoDecember 30, 2023 9:30 pm

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.

Understand regulated vs unregulated brokers for the safety of your money.

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: [email protected] 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.