Cobra Trading Review

Short selling is one of Cobra's main reasons to exist

Cobra puts significantly more emphasis on short inventory than mainstream brokers. Both DAS Trader Pro and Sterling Trader Pro have integrated locate functionality for hard-to-borrow securities, letting traders request shares from the platform before entering a short. Cobra can also source inventory through borrow sources outside the integrated locate monitor.

That last part matters. A locate tool showing unavailable does not necessarily mean Cobra has exhausted every source. Traders can contact the brokerage desk to request additional inventory. For a small-cap short seller, that can be the difference between participating in the trade and watching it.

Locate pricing varies with supply and demand. Cobra states that fees have historically often fallen around $0.01 to $0.05 per share, although difficult securities can cost materially more, and some shares may be available with no upfront charge. Once you accept a paid locate, the account is charged even if you never execute the short.

That is the arithmetic active short sellers should be doing automatically. A broker having more inventory does not mean every locate should be accepted.

DAS Trader Pro or Sterling Trader Pro?

The two platforms target broadly similar traders but feel quite different in use.

DAS Trader Pro offers direct-access routing, multiple stop types, Level 2 trading, advanced charting, hotkeys, multi-monitor support, real-time account management and trading in equities and options. Its keyboard-driven workflow is familiar to many momentum traders. Cobra charges $125 a month, waived at 200,000 shares a month. Market data is separate.

Sterling Trader Pro is also designed for active equity and options trading. It includes Level 2 data, hotkeys, basket trading, custom alerts, advanced charts and multiple execution destinations. The fee is $150 a month, also waived at 200,000 shares. Sterling Web and Mobile cost extra and are not included in that waiver.

Cobra also offers TradingView integration for clients who want to include it in their workflow.

Cobra commissions, routing and market data

Cobra charges per-share commissions for equities rather than offering a blanket $0 rate.

Higher-volume traders can ask about customised rates. Cobra says rate changes must be requested and are not applied retrospectively simply because you crossed a tier. If your volume increases materially, ask for the better rate. Options use a simpler schedule:

Exchange, clearing and regulatory charges apply on top. Twenty contracts at the standard tier create $10 in base commissions before other fees.

Routing costs can matter as much as commission. Cobra provides multiple direct and smart routes through DAS and Sterling. Venues may charge for removing liquidity or pay rebates for adding it. Cobra's DAS schedule lists routes where removing liquidity can cost around $0.003 to $0.0035 per share.

A trader paying $0.003 a share in commission plus roughly $0.0035 in routing fees is paying as much for the route as for the broker. A trader who consistently earns liquidity rebates may reduce the effective execution cost. That makes headline commission a poor way to compare active-trading brokers. Market data adds another monthly cost. For DAS, Cobra lists:

Professional rates are substantially higher. Choose feeds based on your strategy rather than subscribing to every available package.

The account minimum is currently messy

This is one area where Cobra's own website is not consistent following the 2026 day-trading rule changes.

Its main FAQ states that day-trading accounts require $10,000 to open and $9,000 to maintain, for both US and non-US residents. But Cobra's dedicated page on the new FINRA intraday margin framework states that the former $25,000 Pattern Day Trader minimum was eliminated on 4 June 2026, and says Cobra intends to offer a product built around the underlying $2,000 margin-account minimum.

That is more useful than pretending an old figure is current because it appears in one FAQ. And there is no reason in 2026 to sell Cobra on the old argument about avoiding the $25,000 PDT rule. That framework has been replaced.

Qualifying day-trading accounts generally provide 4:1 intraday and 2:1 overnight buying power on eligible securities. A trader using $40,000 of intraday exposure against $10,000 of capital who loses 2% on the position has lost $800, which is 8% of account equity, before expenses. Leverage is not a perk in isolation. It is a tool that makes good risk management more important.

Customer support is part of the product

Cobra talks about service far more aggressively than most brokers. Its stated model is high-touch: phone access, live chat and broker assistance for technical problems, locating hard-to-borrow securities and account questions.

That matters more for active traders than passive investors. If a long-term ETF account has a minor interface problem, waiting several hours is annoying. If a platform problem occurs while you are short 20,000 shares of a volatile stock, reaching an actual human quickly has direct financial value.

There are also non-trading costs: $20 domestic outgoing wire, $25 international, options exercise or assignment at $10 plus $0.005 a share with an $11 minimum, a $15 quarterly inactivity fee, $10 plus interest for a Fed call extension and $50 for worthless-security disposition. Paper statements and confirms can also carry charges.

The quarterly inactivity fee is a useful reminder that this is not an account you open and forget.

Is Cobra Trading safe, and who does it fit?

Cobra Trading is an SEC-registered broker-dealer and a member of FINRA and SIPC. It fits active traders who need short inventory, direct-access platforms and broker support more than they need a simple low-cost account. Cobra's primary day-trading clearing firms include Wedbush Securities and Curvature Securities.

SIPC covers eligible securities and cash up to $500,000 per customer, including up to $250,000 for cash claims, if a member brokerage fails and assets are missing. Accounts clearing through Wedbush may also have excess coverage under a separate Lloyd's of London policy, subject to its terms and limits. SIPC does not protect trading performance. If a short position moves 40% against you, SIPC does not reimburse the loss.

Cobra fits best when execution infrastructure contributes directly to your trading results. Short sellers are the clearest example: they can request locates through the platform and contact Cobra's desk when integrated sources do not have the inventory.

The cost structure requires more attention than a mainstream brokerage. Software, market data, ECN routes and locates sit on top of the basic commission, so calculate effective cost per share instead of stopping at $0.003. For an active trader who shorts difficult inventory and trades enough volume to use the fee structure, that complexity may be justified. For everyone else, Cobra may be solving problems they do not have.