Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as Cobra Trading, Inc., were caused by broker misconduct. There are many different ways that your broker can impermissibly drain your accounts. Our attorneys can help you understand the cause of your investment losses, uncover misconduct, and apply the law to hold accountable those responsible.
Cobra Trading is a direct access brokerage for active equities and options traders, offering customizable commissions, short locate services for hard-to-borrow securities, and the DAS Trader Pro and Sterling Trader Pro platforms, with most accounts clearing through Wedbush Securities. Founded in 2004 and incorporated in Wisconsin, the firm is headquartered in Carrollton, Texas, and also offers futures through its separate Venom by Cobra Trading brand.
Cobra Trading, Inc. – By the Numbers:
- CRD #: 132078
- Regulatory Events: 6
- Broker Employees: 15
Cobra Trading, Inc. – In the News:
FINRA v. Cobra Trading, Inc. (Case #2021072501001) – Between November 2019 and October 2023, Cobra Trading paid individuals with followings on social media sites (commonly known as “influencers”) to promote the firm in social media communications. Such influencers posted on the firm’s behalf communications about the firm on social media sites that were not fair and balanced or made claims that were promissory. Therefore, Cobra Trading violated FINRA Rules 2210(d)(1) and 2010. During that same period, Cobra Trading did not review these influencers’ videos prior to their posting on social media platforms, nor did the firm retain those videos. Cobra Trading also failed to establish, maintain, and enforce a system, including written supervisory procedures (WSPs), reasonably designed to supervise communications disseminated on the firm’s behalf by influencers. As a result, the firm violated the Securities Exchange Act of 1934 Section 17(a), Exchange Act Rule 17a-4(b)(4), and FINRA Rules 2210(b), 4511, 3110, and 2010.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.