Cobra Trading or SmartFX – which is better for UK traders 2024? Compare Cobra Trading and SmartFX in this detailed breakdown of their platforms, features and fees.
Established in 2003, Cobra Trading is a US-based brokerage specializing in equities and options contracts. The firm offers 3 powerful platforms and is aimed at professional clients or those looking for retirement accounts. Cobra Trading is regulated by the NFA and SIPC and is a member of FINRA.
SmartFX is an offshore regulated CFD and forex broker with MT5 integration and 5000+ instruments. The brand offers 24/5 customer support and one account type for simplicity. SmartFX is regulated by the Vanuatu Financial Services Commission (VFSC).
Pros
I’m happy with the broker’s regulatory status in the US, with oversight from reputable bodies including the SIPC, NFA and FINRA. This, coupled, with the broker’s strong reputation since 2003 is a great sign of a trustworthy firm
I think the choice of 3 platforms means all strategies and trading styles are catered to. All platforms offer comprehensive charting packages, with sophisticated analysis tools and advanced order types
I found some reasonably low fees at Cobra Trading, including shares from $0.0015, options from $0.30 and margin rates as low as 8%
Cobra Trading offers a good range of account types, including traditional and Roth IRA’s, plus joint, corporate and trust accounts
I like that Cobra Trading doesn’t enforce any minimums on trades and there are also no locate fees
I'm pleased to see the world-renowned MetaTrader 5 terminal available, with all integrated tools including the MQL5 development environment, signals and a forex VPS
There's 24/5 multilingual customer support available via live chat, telephone and email, making it easy for clients to reach the broker during peak times
I found commission-free deposits and withdrawals on offer with instant processing times for some account funding methods
I like that beginners can access copy trading opportunities via the Social Trading network
Cons
Despite the low trading fees, this broker does charge several other platform and admin fees which will soon add up, including monthly software fees from $100 and market data packages from $18 per month
Unfortunately, Cobra Trading isn’t going to be suitable for novices, as the minimum deposit to open an account is $30,000. I think it’s a shame that there are no beginner-friendly accounts at this broker
I did find that pattern trading (PDT) restrictions will apply, though this is expected from a US brokerage
I'm concerned about the general lack of transparency on the website which makes me question how much trust I can put in this broker
The offshore regulatory oversight by the Vanuatu Financial Services Commission (VFSC) raises serious security concerns for me
There's barely any additional tools and resources available, and the educational content is weak compared to top brands
I wasn't able to access any cryptocurrency trading opportunities, which is a drawback compared to similar brands
I think the 5000+ CFD instruments including forex, commodities, indices and stocks should serve active traders well. The MT5 platform also offers plenty of advanced tools and features to facilitate complex CFD trading strategies.
Leverage
1:400
FTSE Spread
Floating
GBPUSD Spread<
Floating
Oil Spread
Floating
Stocks Spread
Variable
Forex
I found an average range of 45+ major, minor and exotic currency pairs at SmartFX, tradable on the MT5 platform. I did appreciate the flexible leverage up to 1:400 and minimum order sizes from 0.01 lots.
