Cobra Forex Broker

Cobra Trading Forex Broker - Complete Information Guide

1. Broker Overview

Cobra Trading, Inc. was established in 2003 and is headquartered in Carrollton, Texas, USA. The company operates as a private brokerage firm, primarily catering to active traders and institutional clients. It offers direct market access for trading stocks and options, with an emphasis on high-volume trading strategies. Over the years, Cobra Trading has built a strong reputation in the trading community, focusing on providing exceptional execution quality and customer service.

Cobra Trading has achieved several milestones since its inception, including the development of advanced trading platforms and the establishment of partnerships with reputable clearing firms such as Wedbush Securities and Interactive Brokers. The firm specializes in retail forex and options trading but also supports institutional services through its sister brokerage, Venom by Cobra Trading.

The business model of Cobra Trading is centered around providing direct access to the markets, allowing clients to execute trades with minimal latency. This model is particularly appealing to day traders and those employing high-frequency trading strategies.

2. Regulatory and Compliance Information

Cobra Trading is regulated by prominent financial authorities, including the Financial Industry Regulatory Authority (FINRA), the National Futures Association (NFA), and the Securities Investor Protection Corporation (SIPC). The firm's regulatory license numbers are as follows:

• FINRA: 0402075
• NFA: 0402075

These licenses ensure that Cobra Trading adheres to strict compliance standards designed to protect investors and maintain market integrity. The firm's regulatory framework is robust, with client funds held in segregated accounts to ensure their safety.

Cobra Trading participates in investor compensation schemes, which provide additional security for client funds. The SIPC offers coverage of up to $500,000, including a maximum of $250,000 for cash claims. Furthermore, clients can obtain additional coverage through a bond from Lloyd's of London, which provides up to $25,000,000 in cash and securities per account.

The firm implements comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to comply with regulatory requirements and ensure the integrity of its operations.

3. Trading Products and Services

Cobra Trading offers a diverse range of trading products, primarily focusing on:

• Forex: The broker provides access to a variety of currency pairs, including major, minor, and exotic pairs. The specific number of forex pairs available is subject to market conditions and demand.
• CFDs: Cobra Trading supports trading in Contracts for Difference (CFDs) across various asset classes, including indices, commodities, and stocks. However, cryptocurrency CFDs are not currently offered.
• Options: The broker provides options trading with competitive pricing structures, making it an attractive choice for options traders.

Cobra Trading is committed to updating its product offerings regularly, ensuring that clients have access to the latest trading instruments and market opportunities. The firm also caters to retail traders, offering a user-friendly platform and educational resources.

4. Trading Platforms and Technology

Cobra Trading supports several advanced trading platforms, including:

• Cobra Trader Pro: This platform is designed for non-professional users and offers customizable features, advanced charting capabilities, and real-time level 2 market data.
• Sterling Trader Pro: Known for its robust trading services, this platform provides advanced analytics, portfolio management, and multiple order types.
• DAS Trader Pro: A direct access software that supports multi-instrument trading, offering advanced charting tools and real-time market news.

Cobra Trading does not support MetaTrader 4 or 5, as it relies on proprietary platforms that are tailored to the needs of active traders. The firm also provides a web-based trading platform and mobile applications for both iOS and Android devices, allowing traders to manage their accounts on the go.

The execution model at Cobra Trading is primarily ECN (Electronic Communication Network), providing clients with direct access to liquidity providers and ensuring fast order execution. The broker's servers are strategically located to minimize latency and enhance trading performance.

5. Account Types and Trading Conditions

Cobra Trading offers various account types to suit different trading styles and preferences:

• Standard Accounts: The minimum deposit for a standard account is $30,000, with a required maintenance balance of $25,000 to keep the account open. This account type is designed for day traders.
• Advanced Accounts: Higher-tier accounts may offer additional benefits and reduced fees for high-volume traders.
• Special Accounts: The broker does not offer Islamic accounts but provides options for corporate and trust accounts.

The leverage ratio at Cobra Trading is 1:4 for day trading and 1:2 for overnight trading. The minimum trade size varies, and clients should be aware of overnight financing costs associated with their positions.

6. Fund Management

Cobra Trading supports several deposit methods, including:

• Wire Transfers
• ACH Bank Transfers
• Checks

The minimum deposit requirement for most accounts is $30,000, and deposits are processed within a few business days. There are no deposit fees, but wire transfers may incur a fee of $20, while international wire transfers can cost $25.

Withdrawals can be made via the same methods, and the processing time typically ranges from 1 to 3 business days. Cobra Trading does not charge withdrawal fees, but clients should be aware of potential fees from third-party payment providers.

7. Customer Support and Educational Resources

Cobra Trading provides multiple customer support channels, including:

• Phone Support: Available from 7:00 AM to 4:30 PM CST, Monday to Friday.
• Email Support: Clients can reach out via email for assistance.
• Live Chat: An instant messaging service is available on the website for quick inquiries.

The firm primarily operates in English, and while it does not offer multilingual support, it provides educational resources such as webinars, tutorials, and market analysis to help traders enhance their skills.

8. Regional Coverage and Restrictions

Cobra Trading primarily serves clients in the United States, with limited availability in other regions such as Australia and the United Kingdom. However, the firm does not accept clients from certain countries due to regulatory restrictions.

The company has a strong presence in the U.S. market, ensuring compliance with local laws and regulations. It is important for potential clients to check the specific restrictions applicable to their region before opening an account.

In summary, Cobra Trading is a well-regulated broker that offers a range of trading products and services tailored to active traders. With its advanced trading platforms and commitment to customer support, it is a viable option for those looking to engage in direct market access trading.