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Cobra Trading Review ✔️ – SA Shares


 

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WHO IS COBRA TRADING?      

According to research in South Africa COBRA TRADING was founded in 2003 in Plano, Texas and provides brokerage services including Forex and related products trading.

COBRA TRADING is a direct-access broker that offers equities, options, and futures. The brokerage is registered with FINRA, SIPC, and NFA (the National Futures Association). A private insurance policy protects securities beyond what SIPC offers.

 

SAFE OR SCAM

One of the best benchmarks to measure the safety of a broker like COBRA TRADING, is to establish which regulating authorities are watchdogs over its actions.

COBRA TRADING is registered for equities, options and futures and regulated by major US regulatory agencies such as FINRA and NFA in all 50 states. US brokers are required to satisfy larger capital requirements than Forex brokers in other jurisdictions to protect investors from any type of broker irregularities

Client funds are safe with COBRA TRADING, as the NFA and the FINRA offer the best standards of regulatory guidelines for such protection and security. All COBRA TRADING trader deposits are held in segregated accounts and are protected by the Securities Investor Protection Corporation (SIPC) up to $25,500,000 at no charge.

SIPC provides coverage up to $500,000, of which a maximum of $250,000 applies to cash credit balances.

 

PRO AND CONS

PROS CONS
1.      Multiple trading tools available 1.      No foreign stocks
2.      Excellent margin rates provided 2.      Large deposit needed to open account
3.      Discounts for active traders 3.      No mobile app available
4.      Several customer service channels 4.      High software fees

 

LEVERAGE

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

The maximum COBRA TRADING leverage is set at 1:50 as per the CFTC rules, which means that a trader will have to risk a significant portion of his trading capital to open a sizeable position in the market.

 

ACCOUNTS   

A forex account at COBRA TRADING is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

COBRA TRADING offers individual, joint and corporate accounts.

Day-Trading Accounts for United States residents requires $30 000 to open an account and a $25 000 minimum balance must be maintained in each day-trading account.

Non-United States residents must deposit at least $50 000 to open an account and a $25 000 minimum balance must be maintained in each day-trading account.

 

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex:

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities:

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices:

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals:

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy:

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

COBRA TRADING offers Forex, Precious Metals, Equity Indices and Energies for trade. As an NFA member firm, COBRA TRADING offers futures trading through its Venom Trading division which clears exclusively through Interactive Brokers and allows customers the ability to trade equities, options, forex, and futures from a single account.

 

FEES

Cost depends on different factors, like spread and margins, and COBRA TRADING clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

COBRA TRADING offers a tiered commission schedule for stocks that starts at $0.004 per share and decreases to $0.002 for accounts that trade more than 2 million shares a month. All trades have a $1 minimum.

Traders are responsible for their market centre routing fees or rebates. COBRA TRADING’s 5.25% flat margin rates are competitive while spreads may be slightly more expensive than conventional ECN accounts.

COBRA TRADING charges a $15 quarterly inactivity fee and all of its trading platforms come with monthly fees, ranging from $125 up to $350. This can be avoided by placing enough trades with the required level ranging from 250,000 shares to 500,000 shares per month.

COBRA TRADING also charges for all market data, a basic package costing $25 per month for non-professionals, and $79 for professionals.

 

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of COBRA TRADING the minimum deposit required by United States residents to open a Day-Trading Account is $30 000. Non-United States residents need $50 000 to open an account.

You can fund a COBRA TRADING account by check, wire, or account transfer only, since no form of credit/debit card payment or e-wallets are allowed.

 

TRADING PLATFORMS

The forex trading platform provided by COBRA TRADING to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

COBRA TRADING provides DAS Trader Pro for investors who need basket trading, advanced order types, or multi-account management. It has advanced analytics and allows multi-instrument trading.

RealTick is provided for traders who have global investments. It also has a multi-account feature that institutional investors may need.

Sterling Trader is a multi-purpose front-end trading platform and offers apps for both Android and Apple devices.

COBRA TRADING’s online platform, CobraOnline, is web-based for stocks and options and requires no download. All platforms are designed to run on Windows 2000 or later PCs.

COBRA TRADING platforms are quite expensive since traders have to pay around $150-$250 per month for the proprietary trading platforms.

 

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with COBRA TRADING for the first time, you will be required to go through a basic “know your customer” process, which will allow COBRA TRADING to ascertain that your submitted details and ensure the safety of your funds and account details.

 

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of COBRA TRADING customers can reach the support team anytime during the week from 07:00 until 16:30, Monday through Friday. The Cobra website also offers an online chat option.

 

EDUCATION       

Before starting to trade, potential clients of COBRA TRADING should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

The COBRA TRADING website lacks educational material, making the brokerage an unattractive option for new traders.

 

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With COBRA TRADING the research options depend on the platform chosen for trading.

Traditional stock research is almost non-existent and necessary tools like advanced portfolio analysis and back testing capabilities are not available.

 

AWARDS

Being an awarded company instils extra confidence by traders.  COBRA TRADING claims to have been awarded as Best in Class for Professional Trading, an award based on data points collected over six months and compared with broker/dealers within a peer group by Stockbrokers.com.

 

CONCLUSION  

COBRA TRADING can be described as a good choice for active traders, while less frequent or experienced traders would not be well served by the company. COBRA TRADING is a sophisticated direct access broker designed to fit the needs of institutional and retail traders.

COBRA TRADING offers a lot to day traders who do lots of transactions with thousands of shares on a monthly basis. High-volume traders can also receive discounts via ECN rebates by sending orders to specific venues.

Customers who trade less than 250 000 shares per month will have to bear the brunt of the broker’s very high fees.

Traders should also note that futures trading is only available through its Venom Trading division.

 

DISCLAIMER

COBRA TRADING warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with COBRA TRADING, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

COBRA TRADING warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence COBRA TRADING cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

 

 

COBRA TRADING AT A GLANCE

Broker’s Name COBRA TRADING
Headquartered Plano, Texas, United States
Year Founded 2013
Regulating Authorities FINRA, NFA, SIPC
Countries not accepted for trade Not indicated
Islamic Account (Swap Free) No
Demo Account Yes
Institutional Accounts Yes
Managed Accounts No
Maximum Leverage 1:50
Minimum Deposit $30 000
Deposit Options Check

Wire

Account transfer

Withdrawal Options Check

Wire

Account transfer

Platform Types DAS Trader Pro

RealTick

Sterling Trader

CobraOnline

 

OS Compatibility Windows, Android, Apple
Tradable Assets Forex, Precious Metals, Equity Indices, Energies
Languages supported on Website English
Customer Support Languages English
Customer Service Hours 24/5

 

 

Frequently Asked Questions

 

 

Is Cobra Trading a good and legit broker?

 

Our Review of Cobra Trading reveals that this broker is regulated by NFA and FINRA and considered a quality, legit broker.

 

Which platforms are supported by Cobra Trading?

 

Popular platforms by Cobra Trading include: DAS Trader Pro, RealTick, Sterling Trader & CobraOnline

 

Does Cobra Trading offer leverage?

 

Yes, Cobra Trading offers a maximum leverage of 1:50

 

What is the minimum deposit for Cobra Trading?

 

$30 000 for United States residents and $50 000 for non-residents.





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