Cobra Trading Review 2024
Pros
- I found some reasonably low fees at Cobra Trading, including shares from $0.0015, options from $0.30 and margin rates as low as 8%
- I think the choice of 3 platforms means all strategies and trading styles are catered to. All platforms offer comprehensive charting packages, with sophisticated analysis tools and advanced order types
- I’m happy with the broker’s regulatory status in the US, with oversight from reputable bodies including the SIPC, NFA and FINRA. This, coupled, with the broker’s strong reputation since 2003 is a great sign of a trustworthy firm
Cons
- Despite the low trading fees, this broker does charge several other platform and admin fees which will soon add up, including monthly software fees from $100 and market data packages from $18 per month
- Unfortunately, Cobra Trading isn’t going to be suitable for novices, as the minimum deposit to open an account is $30,000. I think it’s a shame that there are no beginner-friendly accounts at this broker
- I did find that pattern day trading (PDT) restrictions will apply, though this is expected from a US brokerage
Cobra Trading Review
Cobra Trading is a direct market access broker offering stocks and options on a variety of trading systems and accounts. The group uses Wedbush Securities and Interactive Brokers as their clearing firm. We’ll learn more about Cobra Trading’s features in this review, including account minimums, fees, regulations and more.
Cobra Trading Group Details
Cobra Trading was founded in 2003. The broker offers three direct access trading platforms on a number of account types to suit both individual traders and corporates.
A Cobra Trading account comes with tiered pricing on equities and options. For those wanting to trade futures and forex, the broker also has a sister brokerage, Venom by Cobra Trading.
Cobra Trading is a member of the Financial Industry Regulatory Authority (FINRA), the National Futures Association (NFA) and the Securities Investor Protection Corporation (SIPC).
Trading Platforms
Cobra TraderPro
TraderPro is a powerful trading system equipped with customisable features and advanced charting capabilities for non-entity and non-professional users only. The platform is based on the Sterling Trader framework and comes with real-time Level 2 market data, hot keys, a short locate monitor, stop orders, custom alerts, news and watch lists.
Sterling TraderPro
As one of the leading direct access platforms for equities and options trading, Sterling TraderPro delivers an advanced trading service for individual traders. Features include Level 2 market data, portfolio management, basket trading, hot keys, stop orders, advanced charting tools, custom alerts, news and watchlists.
DAS Trader Pro
For multi-instrument trading and powerful trading on equities and options, the DAS Trader Pro (Direct Access Software) offers direct order routes, multiple stop types, multi-account management, advanced charting with over 30 technical studies, hot key capabilities, real-time market news and a market scanner.
Markets
Cobra Trading offers the ability to trade equities and options via direct access to the venues that handle order flow for the exchange.
To trade a wider variety of instruments, Venom by Cobra Trading offers US stocks, bonds, ETFs, options, futures and forex.
Commissions
Cobra Trading offers very competitive rates for equities and options to active traders, as indicated below. Equity rates as low as $0.0015/share and Option rates as low as $0.30/contract. Also, there is no minimum per order!
Equities (per share)
- $.0015 10M to 20M shares per month
- $.00175 5M to 10M shares per month
- $.002 1M to 5M shares per month
- $.0025 500K to 1M shares per month
- $.00275 100K to 500K shares per month
- $.003 0 to 100K shares per month
*All trades are subject to ECN charges/rebates and regulatory fees. ECN rebates cannot bring the total commission on any given trade below $0.00.
Options (per contract)
- $.30 10K+ contracts per month
- $.40 2,001 to 10K contracts per month
- $.50 0 to 2,000 contracts per month
*All trades are subject to any applicable option routing or regulatory fees.
Trading actively and want a customized rate? Call Cobra Trading direct
There are software fees for DAS Trader Pro, Cobra Trader Pro and Sterling Trader Pro, ranging from $100 for Cobra Trader Pro to $200 for Sterling Trader Pro. The software fee can be waived if the following share volume is met within a calendar month:
- 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
There are also monthly basic data packages, charged at $25 for non-pro traders and $79 for pro traders. Optional additional data packages are also available, starting from $12.
Routing fees are also charged within each platform and vary depending on the exchange. A full list of these can be found on the website, along with all other additional brokerage and account fees.
If you don’t see a commission rate that matches your trading style, Cobra Trading request that you contact them directly and let them know what it will take to earn your trading business. They claim they will make every effort to tailor their pricing to best meet your needs.
Cobra Trading Leverage
Retail leverage at Cobra Trading is 1:4 for day trading and 1:2 for overnight trading. If you’re trading in an IRA or cash account, buying power is limited to the cash available.
Mobile Trading
Mobile trading is only available when using iDAS powered by DAS Trader Pro. The monthly cost for this addition is $30/month.
The Venom division does offer a proprietary mobile app which allows you to trade stocks, options and futures using real-time streaming quotes and charts. Mobile users can set price alerts and access full account management on both iOS and Android devices.
Payments
Funding options are as follows; Wire, ACH Bank transfer or a check.
Funds must be payable to the broker’s clearing firm, Wedbush Securities for both methods. Traders can also transfer an account from another firm (ACAT) by contacting customer support and obtaining an account transfer form.
Note that there is a $20 fee on wire deposits and withdrawals. International outgoing wire transfers cost $25.
Demo Account
Cobra Trading offers demo accounts for those who want to test drive any of the platforms before opening a live account. Venom Trading users will need to get in touch with the customer support team to set up a demo account.
Cobra Trading Bonus
Cobra Trading and Venom Trading currently do not offer any bonuses or promotions. You can check the websites or social media pages for any deals in the future, though these may be limited due to regulatory restrictions.
Regulation Review
Cobra Trading Inc. is a member of the Financial Industry Regulatory Authority (FINRA), the National Futures Association (NFA) and the Securities Investor Protection Corporation (SIPC).
FINRA regulates brokerages in the United States and is authorised by Congress. The NFA is a self-regulatory organisation for the US derivatives industry, including ETFs, off-exchange foreign currency, and OTC derivatives. The SIPC is a federally mandated non-governmental organisation, which provides investor protection up to $500,000 with a limit of $250,000 for cash balances.
Additional Features
Cobra Trading offers a limited range of additional resources, including platform tutorials and trading videos on YouTube. There is also a blog section, though with only a few articles. The resources on Venom are a little more comprehensive, with a few courses, product tours and webinars on offer.
Account Types
Cobra Trading offers a variety of account types to suit different types of trader, including Individual, Joint, Corporate, LLC, Partnership, and Trust accounts.
Note that the minimum initial deposit and account maintenance requirements will not be suitable for beginners. The initial deposit for domestic (US) day trading accounts is $27,000, with a required maintained balance of $25,000 to keep the account open.
International day trading accounts require a $30,000 initial deposit and a $25,000 balance to keep the account open.
Those who do not qualify for a Cobra Trading account may want to consider a Venom account, with minimums from $3,000 for individual accounts.
Trading Hours
Cobra Trading offers both premarket and postmarket trading for all clients. Trading Hours 4:00 EST (by request) – 20:00 EST.
Session times for specific instruments vary and can be found within your chosen platform.
Customer Support
You can contact Cobra Trading by email, at info@cobratrading.com, via the phone number, at 877-792-6272, or via the live chat service. Business hours are Monday to Friday from 07:00 – 16:30 CST. The broker is closed on weekends.
Security
Most platforms typically follow industry-standard security requirements such as SSL-encryption and login security codes or authentication. Unfortunately, it’s not clear which security measures are used within the Cobra Trading platforms, but you can get in touch with the broker for clarity.
Cobra Trading Verdict
Cobra Trading offers a regulated and established trading service, suitable for experienced and active traders who are able to pay the $30,000 minimum deposit ($27k for US traders). The range of trading platforms is impressive, with demo options available.
Commission fees are applied in lieu of payment for order flow, which increase the likelihood of an improved execution when compared to other big-box brokers.
Top 3 Alternatives to Cobra Trading
Compare Cobra Trading with the top 3 similar brokers that accept traders from your location.
- IG – Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
- Interactive Brokers – Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
- FOREX.com – Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
Cobra Trading Comparison Table
| Cobra Trading | IG | Interactive Brokers | FOREX.com | |
|---|---|---|---|---|
| Rating | 3.3 | 4.7 | 4.3 | 4.5 |
| Markets | Stocks, options | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies | Forex, Stocks, Futures, Futures Options |
| Demo Account | Yes | Yes | Yes | Yes |
| Minimum Deposit | $27,000 | $0 | $0 | $100 |
| Minimum Trade | $1 | 0.01 Lots | $100 | 0.01 Lots |
| Regulators | FINRA | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM | NFA, CFTC |
| Bonus | – | – | – | Active Trader Program With A 15% Reduction In Costs |
| Education | No | Yes | Yes | Yes |
| Platforms | Own | Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Leverage | – | 1:30 (Retail), 1:250 (Pro) | 1:50 | 1:50 |
| Payment Methods | 2 | 6 | 6 | 8 |
| Visit | Visit | Visit | Visit | Visit |
| Review | – | IG Review |
Interactive Brokers Review |
FOREX.com Review |
Compare Trading Instruments
Compare the markets and instruments offered by Cobra Trading and its competitors. Please note, some markets may only be available via CFDs or other derivatives.
| Cobra Trading | IG | Interactive Brokers | FOREX.com | |
|---|---|---|---|---|
| CFD | No | Yes | Yes | No |
| Forex | No | Yes | Yes | Yes |
| Stocks | Yes | Yes | Yes | Yes |
| Commodities | No | Yes | Yes | Yes |
| Oil | No | Yes | No | Yes |
| Gold | No | Yes | Yes | Yes |
| Copper | No | Yes | No | No |
| Silver | No | Yes | No | Yes |
| Corn | No | No | No | No |
| Crypto | No | Yes | Yes | No |
| Futures | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes |
| ETFs | No | Yes | Yes | No |
| Bonds | No | Yes | Yes | No |
| Warrants | No | Yes | Yes | No |
| Spreadbetting | No | Yes | No | No |
| Volatility Index | No | Yes | No | No |
Cobra Trading vs Other Brokers
Compare Cobra Trading with any other broker by selecting the other broker below.
The most popular Cobra Trading comparisons:
FAQ
How can I open an account with Cobra Trading?
After clicking on Open An Account on the website, you will need to provide your personal details and then download the appropriate account applications when instructed. Cobra Trading can also email you an account opening package.
Who is the clearing firm for the Cobra Trading group?
Most accounts are opened through Wedbush Securities, though additional clearing via Venom is also provided through Interactive Brokers.
What leverage is available at Cobra Trading?
Retail leverage at Cobra Trading is limited to 1:4 for day trading and 1:2 for overnight trading.
Does Cobra Trading offer a demo account?
Yes, you can open a demo account in any of the platforms by filling in the request form on the website.
What deposit methods are available at Cobra Trading?
Deposits are available via bank wire transfer or cheque. You can also transfer an account from another firm.
Customer Reviews
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