Updated on March 13, 2024
Quick Links
In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding CobraCFD due to the issues we've identified.
Is CobraCFD Scam or Legit Broker? ▲
CobraCFD, unfortunately, falls into the category of brokers that are not safe for trading, due to its status as an offshore entity. Ownership by Cobracfd Ltd and Kings Power Ltd, both registered in the Trust Company Complex, Marshall Islands, raises significant concerns. The Marshall Islands is known for its lax regulatory environment, with minimal requirements and virtually no oversight of forex trading activities. This has made it an attractive haven for questionable forex brokers, including notorious names like MegaTradeFX and Swissinv24.
The lack of stringent regulations and oversight typically associated with reputable financial authorities means that traders' investments are not adequately protected. Given the offshore registration and the absence of a reputable regulatory body overseeing CobraCFD's operations, it's clear that trading with them carries a high level of risk.
CobraCFD positions itself as a broker offering trading options across a variety of liquid assets, such as currency pairs, stocks, major financial indices, and commodities. They claim a global reach and emphasize their commitment to delivering professional and reliable services to a diverse clientele, ranging from novices to seasoned investors. CobraCFD boasts an array of trading platforms, tailored to cater to the varying needs of its users. However, concerns regarding its reliability are unavoidable.
While CobraCFD purports to operate in compliance with international financial and anti-money laundering regulations, they fall short of providing concrete details about their regulatory status, which is a significant red flag. The provision of a British contact number, despite lacking a physical presence or regulatory authorization in the UK further compounds these concerns.
Adding to the alarm bells, CobraCFD has found itself on the receiving end of a blacklist by the Italian regulator, CONSOB. This action was taken under the powers granted by the "growth decree" to combat abusive financial intermediaries, highlighting the broker's questionable legitimacy.
The evidence strongly suggests that traders and investors should steer clear of CobraCFD, along with other Marshall Islands-based brokers. The lack of robust regulation and oversight, combined with the broker's inclusion on regulatory blacklists, highlights the significant risks involved in dealing with such entities. Instead, traders should seek out brokers that are thoroughly regulated by reputable authorities, such as those in the UK or Australia, where stringent regulatory standards offer a higher degree of investment protection. Trusted and reliable brokers like City Index and eToro represent much safer options for those looking to trade in the forex market.
CobraCFD Update
It has come to our attention that CobraCFD's website is currently inactive, signaling a halt in their trading offerings and the opening of new accounts. Despite this development, our advice remains unchanged. Traders should remain vigilant and cautious, particularly if approached with trading proposals from or related to CobraCFD. The cessation of activity does not eliminate the potential risks associated with this broker, and traders are advised to conduct their due diligence before engaging in any trading activities.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
CobraCFD Review 2024
