Cobra Trading is a direct-access broker that provides traders with an extensive selection of trading platforms, rapid trade executions, and superior customer service. What exactly is it about these firms that make them ideal for day trading? In this review of Cobra Trading, you are going to learn exactly this information for yourself.
Concerning Cobra Trading:
In 2003, Chadd Hessing established the company known as Cobra Trading. Their customers are busy day traders who take advantage of the affordable commission rates, several trading platforms, industry-leading customer support, and short locate availability that is among the best in the market. All orders placed with Cobra Trading are processed and cleared through reputable third parties such as Wedbush Securities and Interactive Brokers. All client accounts held with Cobra Trading are secured by the Securities Investor Protection Corporation (SIPC) and Lloyd’s of London.
Buying and Selling Platforms
Clients of Cobra Trading have the choice of selecting one of three sophisticated day trading platforms, each of which offers real-time market data, a number of different options for order routing, and rapid order execution.
• DAS Trader Pro: When it comes to day trading equities that are listed in the United States, the direct market access platform that sees the most use is DAS Trader Pro. The platform supports a wide variety of sophisticated order types, real-time quotations, order book insights, charting tools, and basket trading, among other things.
• Sterling Trader Pro: Sterling Trader Pro is another leading direct-access trading platform that offers day traders the best possible software with fully customizable layouts, order routing options, charting, real-time quotes, and more. Sterling Trader Pro was developed by Sterling Trader Group, a company that specialises in the development of trading software.
• Cobra TraderPro: Cobra TraderPro is the most cost-effective trading platform offered by Cobra Trading. It is a white-label solution based on the widely used Sterling Trader Pro framework that has been tailored specifically for the customers of Cobra Trading. It has all of the elements that are necessary for aggressive traders and investors. This contained a short locate monitor, enhanced graphing, real-time data, and hot-key trading.
Investors are able to trade on all three platforms before the market opens, during regular trading hours, and after the market closes. These services and functionalities are offered on all three platforms. By taking advantage of our special promotion, new customers to Cobra Trading will have the opportunity to evaluate one of our platforms at no cost for an entire month. Additionally, the platform can be changed whenever it is most convenient for the user.
Which platform should we go with?
The greatest place for novice traders to begin their trading careers and the platform with the most affordable monthly costs is Cobra TraderPro. The famous Sterling Trader framework serves as the foundation for the Cobra TraderPro platform, which provides users with essential features including as hotkeys, real-time Level 2 market data, and stop orders.
DAS Trader Pro is yet another solution that finds widespread use among day traders. They provide one of the most extensive order routing choices in addition to having a pricing structure that is reasonable. Another excellent trading tool, Sterling Trader Pro, offers even more routing possibilities than its competitors.
When it comes to trading software, day traders place a high value on quality, and this is especially true in situations where day trading is the primary source of revenue. Traders gain an advantage and unlock greater possibilities for profit when they make an investment in the best tools.
A free test drive is available through Cobra Trading. Simply submit your request for a free demo through this link in order to qualify for the reduced commission rate.
Market Data
Day traders who want to be able to compete with the industry’s best need to have access to tick data that has not been censored. The price of the basic data package for traders who are not professionals is $25 per month. It featured data from Level 1 and Level 2 of the Nasdaq, data from Level 1 and Level 2 of the NYSE, data from basic US indices, and data from pink sheets.
Pricing
Commissions
The equities trading commissions that are offered by Cobra Trading typically begin at $0.003 per share. The good news is that if you are a reader of daytradingz.com, you are eligible to receive a discount of 25% at Cobra Trading, which equates to $0.00225 per share for all new accounts.
In order to earn a comparable rate, you are required to trade a minimum of one million shares per month, which is difficult for novice traders to accomplish. This offer is open to all new accounts, with the requirement that each account have a minimum balance of $27,000.
Why $30,000, you may wonder. If a trader has less than $25,000 in their account at any given time, the SEC rules stipulate that they are only permitted to engage in a maximum of three day trades within a rolling five-day period. Traders who want to engage in more frequent transactions are required to have a minimum balance of $25,000. The SEC’s PDT Rule kicks in once the value of your account drops below $25,000, at which point your account is disabled for day trading activity and the rule takes effect. Because of this, the minimum deposit required to open an account with Cobra Trading is $27,000.
Trading options with Cobra Trading is also an option; the cost is $0.50 per contract and side, or $0.30 per contract if you trade more than 2,000 contracts in a given month. At Cobra Trading, the minimum amount required to make a trade in stocks or options is zero dollars; nevertheless, these trades are still subject to regulatory fees, ECN charges, and rebates. Clearing for stocks and options is handled by Wedbush Securities, which is among the most successful and well-known brokerage houses in the United States.
Additional information: Traders interested in future contracts can do so through a subsidiary of Cobra Trading called Venom Trading. In the future, trades involving contacts will be cleared through Interactive Brokers.
Why Should I Be Responsible for Paying Commissions?
You may be forgiven for wondering why you should pay commissions when major internet brokers such as Charles Schwab and E-Trade both offer trading without commissions. The solution to the issue may be summed up in two words: swiftness and adaptability.
There is no shadow of a doubt that retail brokers such as Charles Schwab and TD-Ameritrade are fantastic options for retail traders who buy stocks and ETFs on occasion and who are primarily concerned with making long-term investments. They provide a huge selection of tools, services, and financial products, in addition to almost any possible sort of investment there is. Their trading platforms come equipped with all conceivable functionality, including an abundance of charting elements, a large number of indicators, and a variety of other flashy-looking stuff.
If you want to be successful as a day trader, the most important skills you can have are speed and adaptability.
A direct-access broker places an emphasis on speed by submitting orders to the most advantageous stock exchange and electronic communication network (ECN) as quickly as they can. Cobra Trading is a direct access broker, which means that it gives its customers the ability to route their orders directly to the exchange of their choice.
Why It Is Important to Go Fast
Let’s say you have never participated in day trading before. You place a total of 20 orders each day, with each order containing 500 shares, and the price per share is set at $20. Because of how quickly trades are executed, the rapid order execution gives you superior trade executions by 2 cents for each transaction you make.
Where is the value in that? 20 orders with a total of 500 shares and an improved execution of $0.02 per trade is 20 orders times 500 shares times $0.02, which equals $200. Trading for 200 days in a year results in a total savings of $40,000, which is calculated as follows: 200 days times $200 saved per day.
Using Cobra Trading does require you to pay commissions on each and every deal, though. However, trading commissions are only a small fraction of a cent, and if you are a beginner, you pay only $0.00225 per share thanks to the discounted rate offered by daytradingz.com. This means that 20 orders multiplied by 500 shares multiplied by $0.00225 equals $22.5 in commissions per day, which multiplied by 200 trading days equals $4,500 in total commissions paid. In this scenario, the anticipated net profit is $40,000 minus $4,500, which equals $35,500.
Even if there are many factors that contribute to the overall value, the example unmistakably demonstrates how advantageous quick order executions may be. You are going to understand what I am talking about if you have ever waited a few seconds or even a few minutes for a trade to be executed.
Simply click the buy or sell button on your trading platform to get an instantaneous fill and to view the current status of your order in real time. This is the crux of the matter when it comes to cobra trading. In order to be successful in day trading, speed is one of the most important needs.
Transaction Costs
The broker is the one who gets the commissions, while the exchange is the one who gets the money for the routing costs. On the other hand, there are times when the exchange may even provide you with rebates. What are the odds of that happening? When it comes to increasing and withdrawing liquidity, the exchange has an impact on the market.
You will be compensated $0.002 per share by exchanges such as ARCA and BATS if you provide liquidity, but you will be charged $0.0035 if you remove liquidity from the market. Other routings such as CODAREB, IEX, and ITGMRT do not charge anything, nor do they credit anything, and they allow you to trade without having to pay routing fees.
Assistance to Customers
Instant help provided by real individuals who are familiar with the requirements and jargon of day traders, as opposed to chat robots, voice mails, and lengthy waiting periods.
Are you fed up with automated phone systems that require you to wait for a lengthy time? Have you ever tried to conclude a deal via chat, only to be told that you may leave your email instead because the live-chat service is temporarily unavailable? The true value of customer service only becomes apparent once an issue has already been encountered. We really hope that you never experience any difficulties with either your computer or your internet service provider.
In the event that you lose access to the internet while holding a position consisting of 10,000 shares, you should get in touch with a representative as soon as possible in order to close out your position.
The satisfaction of our clients is a top priority for Cobra Trading, Inc. You get access to their trade desk whenever you require their assistance, and there are no additional fees associated with broker-assisted trades.
Shorting Stocks
When it comes to profitable short-term trading with a favourable risk-to-reward ratio, shorting stocks intraday opens up a whole new universe of opportunities. Finding a counterpart who is willing to lend you the shares you need to short is the most difficult component of shorting stocks.
Together with its clearing business, Wedbush Securities, Cobra Trading puts in a lot of effort to track for stocks that are difficult to borrow so that they can borrow them quickly and simply. When compared to retail brokerages, one of the most important advantages is the short locate list, which contains shortable stocks.
Review Synopsis of the Cobra Trading Platform
For day traders that place a premium on the additional benefit of having their orders executed quickly, the best day trading broker is Cobra Trading. Their short locating functionality is good, and all important order types are handled, which leads to quick trade executions. Additionally, direct market access is provided. Readers of Daytradingz.com have the opportunity to start trading stocks with commissions as little as $0.0015 per share by submitting a request for a free demo of the platform.
The fees for using the software are reasonable, and some of the costs can be avoided by trading frequently. Cobra TraderPro, Sterling Trader Pro, and DAS Trader Pro are the names of the platforms that facilitate direct access trading. You can initiate and complete trades over the phone at no additional cost to you, and their customer service is excellent.
Traders have access to a variety of order routing methods, and on exchanges, they can earn rebates simply by adding liquidity to their positions. Personal and business accounts are also included in the list of supported account types. It is possible to execute trades using margin at Cobra Trading, which offers a margin rate of only 5.25 percent on margin balances of up to one million dollars.
Accounts are safeguarded by the Securities Investor Protection Corporation (SIPC), and Cobra Trading is a participant in both the FINRA and the NFA.
Pros
• Direct Access broker that facilitates quick transaction executions
• Free demonstration of the platform provided, together with a discount of 25%
• Support available via phone and chat (free broker-assisted trades)
• A good short locate, also on shares that are difficult to borrow
• A commission structure that is competitive.
Cons
• Account minimum $27,000.
