Cobra Trading

Kurta Law is investigating recommendations by Cobra Trading (CRD#: 132078) brokers. This brokerage firm provides trading platforms to investors and is based in Carrollton, Texas.

Fees and Conflicts of Interest

Investors should be aware of the information disclosed by Cobra Trading in its Customer Relationship Summary (Form CRS), including the following:

• All platform costs are passed on to you, but are not received by the firm. These costs vary depending on which Cobra Trading trading platform you use.
• You’ll also pay commissions on trades, which are influenced by the type and volume of shares traded. The firm has an incentive to encourage increased trading activity to generate commissions.
• Investors pay routing fees, account maintenance fees, margin rates, and other expenses that vary based on your trading activity, including whether you engage in short selling, and your chosen market data package.
• Cobra Trading also earns a portion of your margin interest.

Broker-Dealer Services

Cobra Trading is primarily a day trading and foreign exchange trading (Forex) platform. Investors can also trade in futures, equities, and options, but should be aware that some of these investments can come with substantial risk.

Regulatory Actions

Cobra Trading discloses its history of regulatory actions, including six-figure fines by FINRA, on its detailed BrokerCheck page.

Advertising Allegations

On April 3, 2024, FINRA filed a Letter of Acceptance, Waiver & Consent (AWC) alleging that Cobra Trading paid 17 social media influencers to promote the firm between 2019 and 2023, but failed to establish a supervisory system to review these communications.

The AWC alleged that these influencers’ social media promotions contained promissory claims and communications that were not fair and balanced. The firm allegedly failed to review these influencers’ videos or retain them.

FINRA censured Cobra Trading, fined it $200,000, and ordered it to remediate the supervisory issues alleged in the AWC. You can access the full AWC here.

Alleged Failure to Implement AML Procedures

On February 17, 2015, FINRA alleged in an AWC that Cobra Trading failed to adequately implement anti-money laundering (AML) procedures and an adequate Customer Identification Program for new accounts.

The firm allegedly also moved client transactions from investor accounts into its exempt error account so that these investors could avoid a special maintenance margin call by Cobra Trading’s clearing firm.

Cobra Trading was censured and fined $150,000. You can read the complete AWC here.

How Can Investors Recover Lost Funds from a Brokerage Firm?

FINRA-registered firms typically require investors to pursue FINRA arbitration, a quicker and lower-cost alternative to civil court. A securities attorney can help you file a dispute and potentially recover your losses.

Kurta Law Can Help

Investors who lost money working with Cobra Trading should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.