Cobra Trading Review and Tutorial 2021
|Traders in United States welcome|
|Cobra Trading Facts & Figures|
Trade stocks and options on advanced platforms at Cobra Trading.
|Pay Methods||Cheque, Wire Transfer|
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 in Texas, United States. The broker offers four 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).
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.
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.
RealTick EMS is a direct access research and trading software, which includes real-time pricing, news, analytics, and sophisticated trading tools. The platform also comes in a lighter and low-cost version, RealTick Ultralite, which also supports mobile trading.
Cobra Trading offers options and stock trading only, which is rather limited compared to most other brokers. The broker is also not too transparent about the specific instruments on offer, so it’s worth getting in touch with customer support for details.
To trade a wider variety of instruments, Venom by Cobra Trading offers US stocks, bonds, ETFs, options, futures and forex.
Cobra Trading charges tiered pricing on individual shares and contracts of equities and options, as indicated below. Note that all trades will be charged a $1 commission and are subject to ECN charges/rebates and regulatory fees.
Equities (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 2k contracts per month
- $.40 – 2k to 10k contracts per month
- $.30 – 10k+ contracts
There are some other fees to be aware of, including monthly fees on all platforms, ranging from $100 for Cobra TraderPro to $350 for RealTick Pro (though these are waived if you trade 200k shares per 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.
Overall, if you take all fees into consideration, trading with Cobra Trading will be quite expensive if compared to other similar brokers, such as TradeZero.
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 is only available when using the RealTick Ultralite version of the RealTick platform. 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.
Funding is only available via wire transfer or by cheque. 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. Our review has to note that funding methods are limited when compared to other brokers.
Note that there is a $20 fee on wire deposits and withdrawals. International outgoing wire transfers cost $25.
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.
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.
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.
Cobra Trading offers a variety of account types to suit different types of trader, including Individual, Joint, Corporate, LLC, Partnership, Trust and Retirement accounts.
Note that the minimum initial deposit and account maintenance requirements will not be suitable for beginners. The initial deposit for domestic day trading accounts is $30,000, with a required maintained balance of $25,000 to keep the account open. International day trading accounts require a $50,000 initial deposit and a $25,000 balance to keep the account open. All other domestic account types require a $25,000 initial deposit and $10,000 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 $4,000 for individual accounts.
Reasons to open an account with Cobra Trading vs the likes of Lightspeed and CenterPoint include:
- SIPC compensation
- Established and regulated broker
- Super powerful Cobra trading systems
- Accepts clients from the US, Canada, Australia and the UK
However, there are several disadvantages to consider:
- Pattern day trading (PDT) restrictions
- MetaTrader platforms not offered
- High account minimum deposits
- Multiple fees and commissions
- Limited payment methods
- Limited range of assets
Cobra Trading offers both premarket and postmarket trading for all clients. Trading hours are 06:00 EST to 20:00 EST. Session times for specific instruments vary and can be found within your chosen platform.
You can contact Cobra Trading by email, at firstname.lastname@example.org, 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.
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. The range of trading platforms is impressive, with demo options available. Commission fees are fairly extensive, however, and the lack of online payment methods may disappoint some.
Cobra Trading only accepts traders from United States, Canada, Australia, United Kingdom.
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.
|Trade stocks and options on advanced platforms at Cobra Trading.|