Cobra Trading Says Active Retail Traders Deserve Better Brokerage Services — Could They Be What Traders Are Looking For?

Image provided by Cobra Trading

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The perception of the retail trader underwent a dramatic shift in 2020.

By now, nearly everyone has heard how GameStop Corp. GME went from near bankruptcy to a high of $347 a share, while AMC Entertainment Holdings Inc. AMC transformed from a nearly forgotten entity to one that garnered a daily volume of 750 million orders. 

At the height of the GameStop move, hedge fund short sellers lost nearly $13 billion, and the waterfall of short squeezes that followed only extenuated the bleeding. According to a report by The Economist, the lowly retail trader comprised more than 40% of trading volume in the 1st quarter of 2021, a figure that puts retail influence at an all-time high.

The media has categorized the prowess of retail traders over institutions as a movement that brought power to the people. This idea stretches beyond just stock tickers and money; it inspires brokerage names like Robinhood Markets Inc. HOOD and creates hope for a world where opportunities arise beyond just the top echelons of society. 

Some claim, however, that the admiration for retail traders is not as profound as the media makes it seem. Proponents of this idea claim that industry stakeholders, particularly brokers, remain unmotivated to provide retail traders with the same quality of services that their larger counterparts receive. Poor order executions, extensive customer service waiting times and a disregard for the trader’s performance are some of the issues that are sometimes reported.

Cobra Trading Inc. is an example of a company that believes these are unacceptable circumstances — retail traders have come too far to fret over rudimentary problems like not having access to proper tools or a support team. Cobra Trading claims its exceptional customer service, speed and savings provide the perfect mix for retail traders looking for something better.

An Introduction to Cobra Trading

“Cobra Trading is all about an extreme focus on customer service and a belief in doing what’s right for our traders,” Cobra CEO Chadd Hessing said. 

Founded in 2004, the company has spent nearly 2 decades creating and optimizing solutions for active equities and options traders. Cobra Trading states that it offers sophisticated trading tools and unparalleled support to competitive day traders who want to capitalize on every opportunity by trading faster and more efficiently.

Given the 92-minute average waiting time on brokerage calls in the U.S., Cobra understands that contacting a broker deprives traders of market opportunities and drains them of their mental capital. In response to this finding, Cobra claims to have an average ring time of 5 seconds and no phone queues. The company also aims to answer every phone call on the first few rings, every email within a single business day and every live chat within minutes. Cobra says its local services remain available as early as 4 a.m.

Cobra also provides direct access routing and customizable commissions to offer traders quick, reliable and affordable access to the markets. The company also says its locate services give traders unparalleled access to hard-to-borrow securities. This is especially significant for short sellers, who often encounter difficulties finding stocks to borrow.

Finally, and perhaps most importantly, all Cobra’s brokers are reportedly in-house. These brokers handle every type of inquiry, request and issue and form solid relationships with retail traders. The company claims its brokers genuinely want to see retail traders succeed and that Cobra’s culture brims with the idea of a broker being a trader’s strongest form of support.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.