Cobra Trading is a brokerage firm that specializes in direct access trading, with a primary focus on providing access to shorting opportunities and efficient order execution. They have multiple sources for locating shares to short, ensuring their traders have access to the most favorable opportunities, as explained in the Cobra trading forex broker review. Additionally, Cobra Trading distinguishes itself by offering attentive and prompt customer service. Overall, Cobra is an excellent broker for traders.
Table of Contents
- 1 Pros and Cons
- 2 Pros
- 3 Cons
- 4 Many trading instruments are accessible.
- 5 No foreign stocks.
- 6 Superior margin percentages
- 7 It isn’t a broker with no commission.
- 8 Discounts for frequent traders.
- 9 Opening an account requires a sizable deposit
- 10 OTC and penny stocks.
- 11 There aren’t many tradable instruments available
- 12 Maker-taker fees.
- 13 Not a mobile application
- 14 Excellent customer service
- 15 High software costs.
- 16 Direct market access
- 18 Cobra Trading Offerings
- 19 Cobra Trading Security
- 20 Services Offered
- 21 Day Trading
- 22 Software
- 23 Leverage and Shorting
- 24 Commission and Platform cost
- 25 Cobra Trading Customer Service
- 26 Cobra Trading User Experience
- 27 Cobra Trading Education
- 28 Conclusion
Pros and Cons
Many trading instruments are accessible.
No foreign stocks.
Superior margin percentages
It isn’t a broker with no commission.
Discounts for frequent traders.
Opening an account requires a sizable deposit
OTC and penny stocks.
There aren’t many tradable instruments available
Not a mobile application
Excellent customer service
High software costs.
Direct market access
Cobra Trading Offerings
This broker is a direct market access one that provides you with countless routing options to execute your trades. It’s been designed with active traders in mind and provides clients with the support needed to navigate the markets on any given trading day. You can sign up for this broker here.
Plus, did you know that for the past 4 years the company’s been the “Best Broker for Short Selling Over $25,000”?
What is short selling?
You borrow shares and sell them in anticipation of a decrease in the value of the shares. You would then buy back the shares (ideally at a lower price) to close the position.
Cobra provides its traders with exclusive opportunities to short shares every day. The Cobra Team actively collaborates with various sources to ensure that their traders can capitalize on a wide range of shorting opportunities available in the market, as mentioned in the Cobra trading forex broker review.
DAS is the preferred trading platform at Cobra as it is one of the most versatile and flexible trading platforms on the market.
Some benefits of DAS
- 24 Routing Options
- Complete platform customization
- Mobile app and playback mode optional
- Extremely sensitive screen
Cobra Trading Security
According to the Cobra trading forex broker review, this firm is a participant in both the Securities Investor Protection Corporation (SPIC) and the Financial Industry Regulatory Authority (FINRA). Clients of SIPC members are covered up to $500,000, with cash credit amounts being limited to $250,000 of that amount. Additionally, Cobra Trading clients have additional Securities Investor Protection Corporation (“SIPC”) coverage through Wedbush Securities.
This coverage is provided by Wedbush Securities, who acquired an excess SIPC bond from Lloyd’s of London. The bond offers supplemental coverage for up to $25,000,000 in cash and securities for each client account, with a $100,000,000 maximum aggregate loss limit. Up to $900,000 in cash credit amounts, or a total of $1,150,000 in cash balances, are covered by this bond. Please note that a decrease in a customer’s asset value as a result of market loss is not covered by SIPC coverage or excess SIPC coverage.
Cobra offers several account kinds, such as:
- Individual and joint accounts subject to taxes
- IRAs which are exempt from taxes
- Businesses accounts
- accounts with margin
Cobra allows trading in stocks, options, and ETFs in these accounts. Forex and futures can be traded in different accounts with Venom, a Cobra affiliate.
The broker provides order submission via a minimum of four desktop platforms. Venom also includes a unique set of trade tools.
To open an account with Cobra Trading, a $25,000 deposit is necessary. The broker-dealer then demands $10,000 to maintain the account. These figures pertain to accounts that do not engage in day trading.
Demo trading provides you with the opportunity to practice trading without any financial risk. It allows you to familiarize yourself with the process of placing trades, all while using virtual currency that holds no real-life value. To open a demo account, simply connect with customer service through live chat, and they will guide you through the process. They are committed to supporting your learning journey by providing educational resources and tools, ensuring a smooth and informative experience.
Accounts that are going to engage in day trading need to make a $30,000 deposit. Foreign nationals opening accounts are required to deposit a minimum of $50,000. In each scenario, a $25,000 maintenance demand is required. The PDT rules issued by the authorities led to this regulation.
The following services are provided by Cobra to day traders in exchange for the high balance requirements:
- Expert-grade charting available on multiple desktop operating systems
- Online quick search.
- Maker-taker fees combined with direct-access routing
Now let’s discuss the most important issue.
Sterling Trader Pro:
This powerful desktop software offers equity and options trading with some cool features. Including:
- Advanced charting tools
- Basket trading
- Multiple order types
- Greek values for option contracts
- Level II quotes with integrated trading ticket
The software’s charting program offers a good experience with full-screen mode and nearly 80 technical indicators. Better yet, you can track the price movements of multiple assets at once. You can do this by adding several graphical windows with tabs at the bottom of the screen.
DAS Trader Pro
By switching to DAS, you’ll get higher monthly fees but also sub-millisecond execution times. This is possible because DAS servers are located on both the NYSE and Nasdaq. Highlights:
- Direct-access routing
- Charting with right-click trading
- Stock screener
- An order ticket with integrated Level II data
This platform is the cheapest option at Cobra Trading, as claimed in the Cobra trading forex broker review. Despite its budget price, it still offers several features that swing traders will need. This software is based on the Sterling platform. So if you’ve used Sterling before, the learning curve here will be steep. Highlights:
- A discrete stock locating window
- Customizable alerts
- Level II window with order ticket
The only downside to Cobra TraderPro is that the company restricts its use to non-professional individuals. So if you are a hedge fund or other professional trader, you should choose a different platform.
RealTick Pro and Express
Cobra Trading offers the RealTick platform, in Pro and Express formats. One of the great features of the Pro platform is the wide variety of order types. Highlights:
- Ability to display several Level II windows at one time
- Time & sales window
Leverage and Shorting
Cobra trading generally follows FINRA day trading guidelines. This means the PDT account has 4:1 leverage as intraday buying power. Overnight leverage is halved. Cash accounts have similar metrics, although they are limited to 3-day transactions within a 5-business day period. Some stocks and funds may have higher maintenance requirements and therefore lower leverage.
Using Wedbush Securities as a clearing house, Cobra Trading can identify stocks that are difficult to borrow for short-selling purposes. Shares can be positioned directly on the Cobra platform. The broker has access to several position sources. Location services may incur fees, which vary depending on the stock, as reported in the Cobra trading forex broker review.
Commission and Platform cost
Here are the commissions for stock and option trades:
Stock Commissions, Per Share
Number of Share Traded Per Month
0 to 250,000 shares
250,000 to 1 million shares
1 to 2 million shares
2 to 10 million shares
Lower commissions are charged on accounts which trade more than 10 million equity shares per month.
You must pay software fees to gain access to the platforms. Here are the fees:
Fee, Per month
100% rebate available
Cobra Trader Pro
At 200K shares in a month
DAS Trader Pro
At 250K shares in a month
Sterling Trader pro
At 300K shares in a month
At 300K shares in a month
At 500K shares in a month
This company’s current margin rate is 5.25%. Compared to other brokers, this rate is a very good offer.
There’ll be other charges for market data as well. The basic plan that includes Level II data costs $25 per month for non-experts. Pros need to pay $79 per month. Other data plans are available for an additional fee. For example, pink sheet Level II data costs $20 monthly.
Cobra Trading Customer Service
One of the cornerstones of Cobra Trading is ensuring that every trader has competent and available support throughout the trading day. Instead of having to scramble to find phone support, Cobra traders can call the broker directly or join the chat at cobratrading.com for immediate support.
Are you having problems with your Cobra account or do you want to open one? Contact the Cobra team:
- Chat: cobratrading.com
- Phone: 972 491 7999
Cobra Trading User Experience
The experiences of people who came to Cobra from another broker are often very unfamiliar. Having a direct line of communication with your business and knowing that you can contact them at any time and get help is paramount to your confidence in navigating the market. Cobra gives traders access to the best tools available – DAS, direct routing options, and access to short stocks; this is the exact opposite of trading at a large brokerage firm.
This all boils down to the fact that Cobra Trading specializes in active trading accounts and only works with active trading accounts. The company has increased its headcount by 50% over the past year, in line with its mission to “offer industry-leading platforms, pricing, and service.”
Cobra Trading Education
As you may already know, in addition to the DAS platform, this company also offers Sterling and Cobra Trader Pro (which is a shortened version of Sterling). By the way, 99% of traders choose DAS for its ultimate functionality and responsiveness. As mentioned in the Cobra trading forex broker review, this is one of the best trading platforms available for active trading.
Cobra Trading was established in Plano, Texas, in 2003, and for almost 20 years, it has been perfecting its brokerage services. Cobra Trading offers a variety of desktop trading platforms that are great for day traders and trend traders, as mentioned in the Cobra trading forex broker review. But they have high fees and lack some investment vehicles. Frequent traders who do not qualify for reduced software fees may face a hefty commission.