Forex or foreign exchange is constantly developing the market which attracts a large number of traders and brokers from all over the world. All of them know that this is a great chance to make a profit. However, they should also be aware that this market has its disadvantages. Regulation of companies is a necessary step to take to provide your customers´ safety. Since this is a large market, there is no way to say with certainty which of these companies is best for you. Therefore, before the entering the market, you should explore the options online, read the reviews and forums, and pick the right company based on several sources, and not just one article you have read. Among the vast possibilities and a great number of companies, you can use Cobra Trading as well. The opinions on the mentioned company are different, some customers experienced excellent service, while others believe they were a part of a scam. Whatever the case you should carefully observe all the information available, including those presented below.
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Background and Regulation
It is still a small broker company which has less than a dozen of staff members. However, Cobra Trading has a great potential. Currently, it offers personalized broker-trader relationship. With good prices and executions, Cobra Trading is the very competitive company. On the other hand, the company needs to develop their platforms and expand their offer to the wider market if they are interested in being a part of the big shark pool. Until now, Cobra Trading chose Wedbush Securities to clear the trades. For more than 60 years Wedbush is one of the largest securities firms in the US, with 1000 employees. Wedbush provides additional Securities Investor Protection Corporation (SIPC) coverage for each account that is approved by Wedbush on behalf of Cobra Trading. It means that all accounts up to$25,500,000 are covered at no extra charge. It is important to mention that SIPC provides coverage up to $500,000 with $250,000 maximum to cash credit balances. And in addition to the SIPC coverage, there is Lloyd’s of London which provides additional coverage for up to $25,000,000 in cash. Lloyd´s also offers securities for each client account. However, there is no coverage for a drop in the value of a customer’s possessions due to market loss.
Cobra Trading – Trading Platforms
As it is previously mentioned Cobra Trading, needs to work on their platform, since now they involve third-parties for all of its available platforms. Their belief is that their competitive pricing should not be neglected because of the weak software, which is contradictory to the clients´ opinions who consider that the trading platform is a crucial element of the trade. Nevertheless, clients can choose any of the direct access platforms they offer. For them, it is a good option, and for customers not so much, since these choices are, usually, costly for them, since the platforms are not free. Cobra Trading offers four trading platforms, three of them are desktop-based, and one is web-based. A web-based platform is a great option for new investors with little experience, and as a result, it is not a good option for professionals. The first desktop platform to choose is the RediPlus platform which costs $250 per month unless you trade more than 250,000 shares monthly; in that case, it’s free. You can also useSterling Trader Pro, which is one of the leading direct-access trading platforms which is cheaper than the RediPlus by $50. RealTick EMS costs $150 per month which is great if you look for the more affordable platform. Still, these platforms cannot compete with free platforms that other trading companies offer.
Cobra Trading Account Types
There are only two account types to choose from, and they depend on the amount of initial deposit. There are:
- retail margin account with $2,500 minimum initial deposit
- day-trading account with $30,000 minimum deposit to open
These are very high deposit amounts comparing to the other initial deposit amounts. It can also be a significant disadvantage for the clients who are interested in receiving services from the Cobra Trading. Also, it is vital to say that all day-trading accounts should have $25,000 of minimum balance.
Bonus Policy
There is one more setback when it comes to the bonus policy – there are no special offers and promotions available yet.
Banking Options
There are three possible methods to fund your accounts. You can fund yours with account transfer, which means that you need the copy of the Account Transfer Form (ACAT) to transfer the money from the existing account at another company. You can also make deposits and withdrawals with Wire Transfer or mail a check with your account number to the Wedbush Securities.
Customer Service
Customer service is one of their priorities; even with a small number of employees they are able to provide an excellent team of friendly and helpful representatives. You can contact them via phone, email and via instant messaging through AOL.