Nadex is a US-based exchange that provides powerful trading tools and advanced features to traders of all trading levels. Nadex is a CFTC regulated exchange, not a brokerage.

 

 

Nadex focuses on binary options trading and offers spreads on the most popular trading instruments, forex and equity index futures. In this review of Nadex, we evaluate every element of the service, including pricing, account and trading platform, including their new mobile platform, NadexGo, before making a final verdict.

A brief history

Before looking at the potential of daily trading revenue, it may help you understand how Nadex has evolved into a major exchange. The exchange started in 2004 and was originally known as ‘HedgeStreet’. The goal at this point was to create an electronic market that would make financial derivatives easy to trade for retail investors. By 2007, however, HedgeStreet was closed.

UK-based IG Group Holdings Plc. HedgeStreet acquired the company and in 2009 it was rebranded as North American Derivatives Exchange (Nadex). With sophisticated new technologies and tools.

While the parent company is based in London and listed on the FTSE 250, Nadex headquarters are located in Chicago, IL.

Products

Part of our improved product range has a larger selection of binary options. In fact, binary and call spread contracts cover a variety of underlying markets including commodity futures, stock index futures and spot foreign exchange rates. Additionally, Nadex members may take positions in all of the following assets:

  • Equity Index Futures – US 500 (S & P 500), Wall Street 30 (DOW), US Tech 100 (Nasdaq), US SmallCap 2000 (Russell 2000), FTSE 100, Germany 30 (DAX), Japan 225 ( Nikkei), China 50
  • Forex Pairs – EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, EUR/GBP, USD/CAD, AUD/JPY, GBP/JPY, EUR/JPY
  • Commodities – Crude Oil, Gold, Silver, Copper, Natural Gas, Soybeans, Corn

Traders can also benefit from selectable expiration times, including intraday, daily and weekly expirations. But while using Nadex means you can start trading with 5-minute forex or 20-minute stock index binary options, their suite doesn’t include 60-second binaries or similar products, as some of its competitors do.

Nadex adds new products regularly and the Touch Bracket™ contract is one such addition. Touch Bracket™ is a contract that allows traders to speculate on price movements in the market within a predefined range. Range is limited by floor and ceiling prices. Within these levels, the contract’s value will move in line with the movement of the underlying market.

The micro-lot sizes of the new Touch Bracket™ contracts provide options to trade with lower capital requirements. With built-in floor and ceiling structures, contracts, long or short, are provided with precise risk management. No slipping or hard impact. This provides the power of leverage, but with managed risks. – The maximum risk on any trade is the only capital required to secure that trade. Once trading begins, these contracts can be traded as easily as day trades, as the capital requirements do not change, even overnight.

Minimum initial deposit

Nadex welcomes traders with a minimum initial deposit of $250. This is actually only half the industry average. In fact, Nadex is committed to allowing you to trade a variety of markets in binaries and start spreads immediately once you have funded your account.

This initial deposit is particularly attractive to beginners who don’t want to risk too much capital when offsetting.

A stronger aspect of risk protection is limited risk. The most you can lose in binary options is the amount you paid to enter the trade, since the value of a binary cannot fall below zero. Your losses cannot exceed your deposits because you cannot risk more than you have in your account.

Spreads and Commissions

Most brokers do not offer genuine trade deals. Because Nadex is a non-brokered exchange, traders can place orders directly with the exchange without going through a middleman. So Nadex members don’t have to pay broker fees either.

Instead, Nadex charges a flat fee of $1 per side per contract. Nadex waives settlement fees if binary options trading is pointless. These transaction and settlement fees are Nadex’s sole source of income. This means they do not trade with merchants.

Some suggest that this could mean attractive earnings potential when transaction costs are low. In terms of payout, the maximum loss and profit is calculated through the contract type as well as the warehousing and warehousing time.

Dividends can exceed 100%, but losses are limited to the amount of the initial investment. If you do not have the required amount in your account, you will not be able to trade, so your loss cannot exceed your deposit.

Because Nadex does not participate in trading, prices as well as bid/ask spreads in individual markets are determined solely by participating buyers and sellers. That said, as a CFTC regulated exchange, Nadex works with several market makers to ensure liquidity and bid/ask spreads.

Nadex call spreads

Nadex also offers a unique product, also referred to as “Call Spreads”. They are offered in several markets including stock index futures, commodities and foreign exchange. But don’t worry. Understanding these spreads is also simple.

You can trade market prices such as EUR/USD within a range. As the price of EUR/USD fluctuates, the spread stays within predetermined upper and lower limits, but so do the spreads.

It is worth emphasizing that if the value of EUR/USD goes above the limit, the EUR/USD spread value will break when it reaches a certain limit.

At the high limit, the spread stops at its maximum value. At the bottom, the spread reaches a minimum level and no longer loses value no matter how far the underlying market falls.

As a result, you have better control over your risk reward ratio. This is because the risk parameter is determined by the currency variance cap.

There are all-day and daily currency spreads. Each requires a careful spread strategy. We hope that the Nadex trading platform will emerge. More details can be found below.

I hope you now know what a Nadex spread is. However, for more information about forex and binary spreads, please visit our official website. You can also check contract specifications.

Benefit

The advantages of Nadex spreads in terms of leverage should also be explained. For example, spot forex traders in the US are usually no better than 50:1. Nadex spreads are fully collateralized and have no margin. They are not leveraged trading products but more like short term options. In most cases, however, the cost of a Nadex spread can be lower than trading the underlying market outright.

This low cost can effectively give you a high reward versus risk. Since the maximum risk is limited, some degree of risk control is possible. You can also exit early to further limit your losses. Alternatively, you can secure your profit before the spread expires.

Other trading fees

Reviews of Nadex were quick to highlight that their pricing structure is fairly transparent. As a result, traders don’t have to worry about various hidden fees that will cut their capital throughout the day. However, there is a $25 deposit. You will receive a clear notice if you need to pay any other fees.

So, is Nadex a good exchange in terms of fees? If used judiciously, trading with Nadex can mean generous leverage and low trading fees while keeping your risk level low. However, like the nature of day trading, your capital is always at risk.

Unfortunately, user reviews are quick to point out that Nadex is often lacking in terms of account promotions and special offers compared to other binary providers. However, from time to time they run free trading days and other similar offers. You should check the official website for more details on this.

 

 

Nadex trading platform

One of the most important elements of the trader experience is the platform. This is where you can spend most of your time doing market research and trading.

Nadex’s proprietary platform review results are mixed. It has everything you need, from technical indicators to free real-time market data feeds, but the platform feels a bit foreign. Therefore, new traders may want to use a demo account first to get a feel for the platform.

How to trade

On the positive side, installing it on the platform is relatively straightforward. Go to the ‘Finder’ window on the left side of the platform and select Assets. There is a neat selection of expiry time frames to choose from.

All times are shown in Eastern Standard Time (ET).

The ‘Markets’ window will be updated once both the asset and maturity date have been selected. The tradable price level is then met. There are usually about 10 levels to choose from.

Nadex binary options range from 0 to 100. The former is when the paid option is not done in the money, while the latter reflects the outcome that occurred.

The transaction ticket is then confirmed:

  • Expiration time
  • Price level
  • Bid size
  • Current bid and offer prices

Then you have to choose buy or sell and trade size. You can also change the mark price above or below the current level to see if your position ‘matches’. As a regulated exchange, Nadex will never take on any other aspect of trading. Your orders are only matched by other merchants.

Of course, you can close the deal at any time. This allows you to realize profits or cut losses. Lastly, the numbers the ticket displays highlight the results if you allow option expiration.

Then hit ‘Place Order’. If they match, you should be able to see your trades in the Open Positions window. However, if there is only a partial match, it will automatically take you to the work order screen. You will then receive an email confirmation with your transaction history and other details once your order is confirmed.

Platform verdict

As explained in our customer reviews, forex and binary options, the platform is very user-friendly, so even beginners can easily understand how to trade. Access to historical data is provided, as are all symbols and tools needed to interpret price action.

 

Mobile apps

With mobile app reviews, Nadex’s new Progressive Web App product called NadexGo is one of the most comprehensive on the market.

As soon as you finish downloading NadexGo, you’ll appreciate its slick user interface and streamlined design. In fact, the deal ticket trading area looks a lot like the desktop platform.

Setting up reminders is quick and hassle-free, while conducting research is simple. You can also access the same free signals while viewing your order history. You can also utilize our binary options app tutorial to get the most out of our Apple or Android apps.

Overall, mobile apps are a natural transition from desktop-based platforms. Additionally, NadexGo is actually supported with a browser-based interface that can be opened within a mobile device. This helps alleviate concerns among traders who fear that they will not be able to effectively implement 20-minute or hourly options strategies.

Payment methods

After signing up, you will need to fund your account. Luckily, Nadex offers a number of methods when it comes to depositing and withdrawing, including:

  • Debit card
  • Wire transfer
  • ACH transit (US residents only)
  • Paper verification (US residents only)

Bank verification is required for some transactions and credit cards are not accepted. Users using bank transfer may be required to pay a withdrawal fee, which is $25 but is usually processed the same business day. ACH transfers are free, but usually take 3-5 days.

You can select a specific payment amount by going to the Account section. Also see our FAQ page for more information on minimum withdrawal limits, proofs and other issues. It depends on your payment method and may change over time.

While these payment methods are industry standard, some user reviews complained about the lack of options to fund or monetize their accounts via PayPal.

Nadex accounts

Opening a Nadex account is relatively straightforward. There are two account types to choose from: US personal accounts and International personal accounts, which allow you to reside in over 40 countries. For a full list of countries, please visit the Account Types page on the Nadex website.

All you have to do is go online and follow the on-screen instructions. You must provide:

  • Date of birth
  • Permanent Resident Address
  • Resident registration number or resident registration number

You may be required to upload supporting documents before starting a transaction. You will also need to fund your account. When you sign up, you will also receive information on how to close your account.

Demo account

Nadex offers a free practice account. With your demo login details, you can use the same platform and real-time data as your live trading account. Signing up for a demo account is an ideal way to practice making money without risking your real capital. You can practice scalping strategies, daily strategies or other strategies.

 

 

It is also worth noting that there are certain differences between demo trading and live trading. A working account, for example, cannot reproduce the psychological pressure of putting real capital into it.

If the demo account does not work, you can contact customer support. Also see our Learning Center for guidance on how to get the most out of our trading platform.

 

 

Additional features

Reviews of Nadex praise the wide range of resources available. It may help you understand how Nadex works. Some tools can help you generate income and work towards personal success, such as:

  • Advanced Charting – Use our sophisticated charting and technical tools to develop a variety of techniques, including Out the Money (OTM) strategies. For example, we can use candlestick charts, Fibonacci retracements, and MACD indicators to give you favorable reward-to-risk ratios for building a binary options strategy.
  • Nadex Spreads – Similar to binary options as they have the maximum possible profit or loss. However, they have a variable payout on expiration instead of an all-or-nothing binary outcome.
  • API – There is a lot of information online on how to utilize and modify the rest API, including the unofficial Nadex python API and documentation.
  • Market Data – Nadex provides real-time display price data that matches real-time market prices. No lag. Nadex does not charge extra for data feeds.
  • News Trading – Some utilize complex patterns and trading journals to create and reinforce binary strangleholds. However, some traders focus on market news, and fortunately Nadex provides daily actionable commentary and videos of important market events. This content is written exclusively for Nadex by a group of experienced and trusted analysts from diverse trading backgrounds.
  • Education – From weekly webinars to ebooks and trading courses, Nadex’s Learning Center has a wealth of information to help you grow your trading. Also, online you can find forex binary options videos and strategies to offset stock indices in volatile market environments.

 

Regulations and Licenses

As a result of the hacks and promises brokers make traders millionaires, choosing a regulated binary options trading venue is becoming increasingly important. Is Nadex a scam? Users can relax knowing that Nadex is legal and regulated by the US Commodity Futures Trading Commission (CFTC). You can check it on the official website.

The regulations should also make it easier for non-US traders. Nadex aims to treat all consumers fairly, whether in the US or one of over 40 eligible countries (Mexico, Japan or UK).

Benefits

Choosing Nadex has several advantages:

  • Management – Quickly and easily manage market orders and quotes in the Nadex system.
  • Customer Service – User reviews report high levels of satisfaction with the extensive customer service provided.
  • Market Makers – Nadex has attracted a growing number of market makers to increase liquidity for traders.
  • Fee Structure – With Nadex vs IQ Option and Cboe, you will find that Nadex offers a competitive and transparent pricing structure.
  • Demo Account – Opening a free demo account is simple and can be an effective way to understand Nadex while gaining valuable trading experience.
  • Accessibility – Nadex welcomes traders from over 40 countries. This means Nadex is a viable option not only for UK residents, but also for residents of the US, Canada, Europe, Asia, Australia and beyond.
  • Regulation – Nadex is regulated by the US CFTC, ensuring traders’ capital is protected in multiple scenarios. Additionally, Nadex must comply with rules and regulations specifically designed to protect consumers.
  • Education – Nadex offers tutorials, user guides, PDFs, e-books, webinars and other useful resources through its Learning Center. This is a fantastic place to go for aspiring traders who need help developing a winning strategy. In fact, their webinars can give you detailed instructions on creating an effective ATM or hedging strategy, especially for short-term trading, expanding into 5-minute binaries. We also have a wealth of trading tips and strategy information.
  • Touch Bracket – The power of leverage, but it has its downsides. Microslots are very flexible.

Disadvantages

Despite the benefits, user reviews expose some of the downsides of Nadex’s offering, including:

  • List of Instruments – Vs binary options brokers like Oanda and Stockpair Nadex do not offer a wide range of products. For example, we do not offer one-touch monthly binaries.
  • Promotions and Bonuses – Nadex faults options reviews and ratings for not offering special offers and new customer bonuses.
  • Difficulty – Although Nadex is beginner-friendly in many ways, some users may find binary options trading more complicated than with other binary options providers.
  • Order types – Some competitors offer more order types, giving day traders more choice.

Nadex trading hours

Nadex trading hours are the same as the asset being traded. This includes both regular and electronic trading hours. From Sunday evening until market close on Friday, US EST, Nadex offers trading 23 hours a day, with 1 hour provided between 5pm and 6pm for exchange maintenance.

If a particular market is closed due to holiday observance, Nadex will suspend trading in that market for the duration of the holiday.

Contact & Customer Support

Nadex exchange reviews are quick to praise the product’s customer service component. If you have any problems, you can contact us by email or phone. Customer service representatives are reliable and knowledgeable.

It helps if your website is down and tells you about the legal rules and extensions you need. We may also explain why your order was canceled. Additionally, the review showed that the agent had a strong technical understanding of the platform and tools.

Go to the homepage, then go to ‘Contact Us’ for your local contact phone number. Customer support representatives are available via email or phone from Sunday 15:00 (ET) to Friday 16:30 (ET). Additionally, as a result of exchange accounting and other requirements, agents are available 24 hours a day, 4:30 ET from 3pm Sunday through Friday.

On the downside, Nadex does not currently offer live chat support, but it is planned at some point in the future. This is a shortcoming pointed out in customer reviews and investment forums.

That said, newbie traders looking for instant access to customer support may want to look elsewhere. This is a shame, as competitors continue to increase their customer service offerings while facilitating live video chat.

Note Customer service representatives cannot advise on earnings and taxes, including any form of capital gains calculator and reporting.

Safety Security

Since account hacking is no longer uncommon, some traders naturally have security concerns. Fortunately, Nadex has kept its capital relatively safe. Segregated accounts at top-tier banks keep all customer deposits safe. The Nadex Group also states that it uses intelligent encryption technology to keep all trading activities and personal information safe.

nadex verdict

Nadex is an affordable choice for traders who want to trade binary options across multiple timeframes with powerful trading tools. Their offers come with demo accounts, competitive pricing, and an extensive learning center.

However, Nadex has certain drawbacks. First, some competitors offer more extensive product listings. Second, Nadex can offer more in terms of welcome bonuses and promotions.

Overall, is Nadex a good choice for binary options traders and does it compare favorably with binary options brokers? That’s right. US-based regulated exchanges (not brokers) can cater to the needs of both beginners and veteran traders. However, Rule 101 requires developing an effective options strategy. Otherwise, you can gamble effectively and risk losing your account balance. However, you cannot lose more than your deposit due to Nadex’s cap guarantee.

Accepted countries

Nadex only accepts traders from the US.