Nadex is a US-based exchange that provides powerful trading tools and advanced features to traders of all experience levels. Nadex is not a broker, but a CFTC regulated exchange. Nadex focuses on trading in binary options and call spreads on the most popular commodities, futures and index stock indices. This Nadex review will evaluate all elements of their offering, including pricing, accounts and trading platforms – including NadexGo, the new mobile platform, before coming to a final decision.

Brief history

Before looking at potential day trading returns, it helps to understand how Nadex has grown into a major exchange of its kind. The exchange was launched in 2004 and was originally known as ‘HedgeStreet’. The objective is to create an electronic market that facilitates trading in financial derivatives for retail investors. However, in 2007 HedgeStreet closed its doors. UK-based IG Group Holdings Plc. bought the company and in 2009 HedgeStreet relisted the North American Derivatives Exchange (Nadex). With new advanced technology and instruments. It’s worth noting that while the parent company is based in London and is listed on the FTSE 250, Nadex’s headquarters are in Chicago, Illinois.

Product

Some of the better product ranges see a larger selection of binary options. In fact, binary and call spread contracts cover a wide range of underlying markets, including commodity futures, equity index futures and foreign exchange rates. In addition, Nadex members may take positions on all of the following assets on:

  • Stock 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, Soy, Corn

Traders can also benefit from a choice of expiry times, including daily, daily and weekly transactions. But while using Nadex means you can start trading only on 5-minute forex or 20-minute index binary options, their product range does not include 60-second binaries or similar products, as some competitors do. Nadex adds new products regularly, and the Touch Bracket ™ contract is an addition. Touch Bracket ™ is a contract that allows traders to speculate on market price movements within a pre-defined range. This range is limited by floor and ceiling prices. In this level, the value of the contract will move in linearity with the movement of the underlying market. The micro lot size of the new Touch Bracket ™ contract provides an option to trade with low capital requirements. With built-in structures and ceilings, whether long or short, contracts provide clear indicators of risk control. No slips and no nasty shocks. This provides the power of leverage but with managed risk – The maximum risk on any trade is the only capital required to secure that trade. Once a trade is open, the capital requirement never changes, even if held overnight, making these contracts easy to swing trade on a trading day. No slips and no nasty shocks. This provides the power of leverage but with managed risk – The maximum risk on any trade is the only capital required to secure that trade. Once a trade is open, the capital requirement never changes, even if held overnight, making these contracts easy to swing trade on a trading day. No slips and no nasty shocks. This provides the power of leverage but with managed risk – The maximum risk on any trade is the only capital required to secure that trade. Once a trade is open, the capital requirement never changes, even if held overnight, making these contracts easy to swing trade on a trading day.

Minimum Initial Deposit

Nadex welcomes traders by requiring only a minimum initial deposit of $250. This is actually half of the industry average. In fact, Nadex has made steps to ensure that when you fund your account, you can start trading various markets in binary and spreads immediately. This low initial deposit is particularly attractive to beginners who may not want to risk too much capital on the offset. A more powerful aspect of risk protection is the locked-in risk. The most you can lose on binary options is the amount you paid to enter the trade, because the binary value cannot go below zero. Since you cannot risk more than you have in your account, your losses cannot exceed the deposit.

Spreads & Commissions

Most brokers do not offer genuine exchange trading. Because Nadex is an exchange and not a broker, traders can submit their orders directly to the exchange and not through a broker. Therefore, Nadex members also do not have to pay broker commissions. Instead, Nadex charges a flat fee of $1 per side, per contract. If a binary options trade ends worthless, Nadex will waive the settlement fee. These trading and settlement fees are Nadex’s sole source of income. This means they do not trade with their dealers. Some suggest this may mean attractive income potential as your trading costs are lower. In terms of payouts, maximum loss and profit are calculated through entry/exit time, as well as contract type. Payouts can exceed 100% while losses are limited to the amount of capital initially invested. Because you cannot take a trade if you do not have the required amount in your account, the loss cannot exceed the deposit. Because Nadex is not involved in trading, the bid/ask spread in individual markets, as well as the price, is determined solely by the participating buyers and sellers. That said, as an exchange regulated by the CFTC, Nadex partners with various market makers to ensure viable liquidity and bid/ask spreads. Because Nadex is not involved in trading, the bid/ask spread in individual markets, as well as the price, is determined solely by the participating buyers and sellers. That said, as an exchange regulated by the CFTC, Nadex partners with various market makers to ensure viable liquidity and bid/ask spreads. Because Nadex is not involved in trading, the bid/ask spread in individual markets, as well as the price, is determined solely by the participating buyers and sellers. That said, as an exchange regulated by the CFTC, Nadex partners with various market makers to ensure viable liquidity and bid/ask spreads.

Nadex Call Spread

Nadex also offers a unique product that they also call “Call spread”. This is offered in several markets, including stock index futures, commodities and forex. But fear not, understanding this spread is also easy. You can sell market prices like EUR / USD in a range. As the price of EUR/USD fluctuates, so does the spread, although it remains within the upper and lower limits that have been set. It is worth noting that if the EUR / USD value exceeds one of the limits, the EUR / USD spread value will stop at any violation limit. At the upper limit, the spread stops at the maximum value. At the lower limit, the spread reaches a minimum and will not lose more value, no matter how far the underlying market falls. As a result, you can increase control over your risk-reward ratio. This is because you decide your risk parameters through the call spread limit. You have intraday and intraday call spreads. Each will require a careful deployment strategy. This is expected where the Nadex trading platform comes into play. Details available below. You hopefully now know what the Nadex spread is. However, for more detailed forex and binary spread details, go to the official website. You will also find contract specifications. for more detailed forex and binary spread details, go to the official website. You will also find contract specifications. for more detailed forex and binary spread details, go to the official website. You will also find contract specifications.

 

 

Leverage

The advantage of the Nadex spread in terms of leverage also needs to be explained. Usually, forex traders in the US, for example, cannot be better than 50: 1. The Nadex spread is fully collateralized and does not involve margin. They are not leveraged trading products, but more like short-term options. However, in many cases the cost of a Nadex spread can be lower than trading the underlying market outright. This low cost can give you high risk reward. You also have a certain level of risk control, because your maximum risk is limited. Plus, you can exit early to limit your losses. Alternatively, you can grab your profit before the spread expires.

Other Trading Fees

Reviews from Nadex have been quick to highlight their relatively transparent pricing structure. As a result, traders do not have to worry about various hidden fees that will cut into their final capital. Having said that, there is a $25 back deposit fee. If you have to pay other fees, you will face a clear notice. So, Nadex is a good exchange in terms of fees? If used carefully, trading with Nadex can mean cheap leverage and low trading fees, and all while maintaining a low level of risk. However, as is the nature of trading today, your capital is always at risk. Unfortunately, user reviews are quick to point out that Nadex often falls short in terms of account promotions and special offers compared to other binary providers. however, sometimes they will run free trading days and other similar offers. You need to check their official website for any latest details.

Nadex Trading Platform

One of the most important components of a trader’s experience is the platform. This is where you will spend most of your time, conducting market research and conducting trades. Results from reviews of Nadex’s proprietary platform are mixed. Although you have everything you need, from technical indicators to supplying real-time market data feeds, the platform has an alien feel. Therefore new traders may want to get a feel for the platform using a demo account first.

How to Trade

On the plus side, setting up the platform is pretty straight forward. Just go to the ‘Finder’ window on the left side of the platform to select an asset. This will bring up a choice of time frame options to choose from. Note all times are listed in Eastern Time (ET). When both assets and expirations have been selected, your ‘Market’ window will update. You will then be filled with price levels available for trading. Usually you can expect around 10 levels to choose between. Nadex binary options range from 0 to 100. The former is when the option settles out of the money, while the latter reflects the outcome that did. Your trading ticket will then confirm:

  • Expiration time
  • Price level
  • Bid size
  • Offer prices and current offers

You then need to choose buy or sell and determine the size of the trade. You also have the option to change the indicative price above or below the current level to see if your position will be ‘matched’. As a regulated exchange, Nadex will never take another part of your trade. Your order will only be matched by other merchants. Of course, you can close your trade at any time. This will allow you to realize profits or reduce losses. Finally, your ticket figure displays the result if you allow the option to expire. Then you just need to hit ‘Place Order’. If matched, you should be able to see your trade in the Open positions window. However, if only matches it, it will automatically transfer to the Employee Order screen. You will then get an email confirmation with your trade details and others when an order is completed.Platform Verdict As forex reviews and binary customer reviews have explained, this platform is quite user-friendly which allows even for beginners to understand how to trade easily. Access to historical data is provided, as are all the symbols and tools needed to interpret price action.

Mobile Application

Mobile app reviews show that Nadex’s new Progressive Web App offering known as NadexGo is one of the most comprehensive on the market. Once you’ve finished downloading NadexGo, you’ll begin to appreciate its sleek user interface and simple design. In fact, the trading ticket trading area looks very similar to the desktop platform. Conducting research is easy while preparing signals is quick and easy. You also get access to the same free signals while viewing your order history is easy. In addition, you can use the binary options application tutorial to help you get the most out of your Apple or Android application. Overall, mobile apps provide a seamless transition from desktop-based platforms. Besides, NadexGo is actually supported by a browser-based interface that can be opened from within your mobile device. This should all help alleviate anxiety among traders who worry they won’t be able to effectively execute 20-minute or hourly option strategies.

Payment method

Once you’ve signed up, you’ll need to go fund your account. Fortunately, Nadex offers several ways to go about depositing and withdrawing, including:

  • Debit Card
  • Wire transfers
  • ACH Transfer (US residents only)
  • Paper inspection (US residents only)

A bank confirmation note is required for some transactions and credit cards are not accepted. Users may have to pay a withdrawal fee if they use a wire transfer, which will cost $25 but will usually be processed the same business day. While ACH transfers are free but usually take between three to five days. You can go to your account section to select a specific payment amount. Also, check out their FAQ page for details on minimum withdrawal limits, proof and any other issues, as this depends on the payment method and can change from time to time. Although this payment method is fairly industry standard, some user reviews do not complain about the lack of options to fund the account or take profits through PayPal.

 

 

Nadex account

Opening a Nadex account is relatively easy. There are only two types of accounts to choose from, US individual accounts and international individual accounts available for residents of over 40 other countries. For a full list of countries, visit the Account type page on the Nadex website. All you have to do is head online and follow the on-screen instructions. You need to provide:

  • Date of birth
  • Permanent residential address
  • Social Security Number or National Identification Number

Note you may need to upload supporting documents before you can start trading. You also need to fund your account. When you register, you will also be given information on how to close your account.

Demo Account

Nadex offers a free practice account. Once you have your demo login details, you can use the same platform and real-time data as with a live trading account. Registering for a demo account is an ideal way to practice generating profits without having to risk real capital. You can practice scalping strategy, intraday strategy, or any other.It is also worth noting there are certain differences between demo vs live trading. For example, practice accounts cannot replicate the psychological stress that comes with putting real capital on the line. If your demo account is not working, you can contact customer support. You can also view the Learning Center for guidance on how to get the most out of the trading platform.

Additional features

Nadex reviews praise the extensive resources. All that can help you understand how it works on Nadex. Some tools can also help you earn and work toward personal success, including:

  • Advanced charts – Advanced charts and technical tools can be used to develop various techniques, including out-of-the-money (OTM) strategies. For example, you can also use candlestick charts, Fibonacci retracements and MACD indicators to help you build a binary options strategy, with a favorable risk to reward ratio.
  • Nadex spreads – They are similar to binary options in that they have a maximum possible profit and loss. However, they have variable payouts at expiration instead of all binary outcomes.
  • API – There is a lot of information online about how to use breaks and fixed APIs, including the unofficial Nadex python API and documentation.
  • Market data – Nadex offers real-time indicator price data that matches the underlying market price. No delay. Nadex does not charge additional fees for data feeds.
  • News trading – Some use complex patterns and trading journals to craft and increase binary scrambles, for example. However, some traders focus on market news and luckily, Nadex provides daily commentary and videos on important market events. This content is created exclusively for Nadex by a group of experienced and trusted analysts from various trading backgrounds.
  • Education – From weekly webinars to e-books and trading courses – there’s plenty of information to help your trading grow in the Nadex Learning Center. In addition, you can also head online to find forex binary options videos and strategies to trade stock indices with the risk of being locked in a volatile market environment.

Rules & Licenses

As a result of hacks and promises from brokers to make traders millionaires, choosing a place to trade regulated binary options is increasingly important. So, Nadex is a scam? Users can rest easy knowing that Nadex is legal and regulated by the US Commodity Futures Trading Commission (CFTC). You can check their official website for confirmation. This rule should also put traders outside the United States easy as well. Whether you’re in the United States or one of over 40 eligible countries – whether it’s Mexico, Japan or the United Kingdom, Nadex aims to treat all users fairly.

Benefits

There are several clear advantages to choosing Nadex, including:

  • Management – ​​Managing market orders and quotes is quick and easy on the Nadex system.
  • Customer service – User reviews report a high level of satisfaction with the extensive customer service offered.
  • Market makers – Nadex has attracted market makers, which can lead to increased liquidity for more and larger traders.
  • Fee structure – When you take Nadex vs IQ Option and Cboe, you realize that Nadex offers a competitive and transparent pricing structure.
  • Demo account – Opening a free demo account is easy and can be an effective way to understand Nadex while gaining valuable trading experience.
  • Accessibility – Nadex welcomes traders from over 40 countries. This means that Nadex is an option for UK residents, as well as from the USA, Canada, Europe, Asia, Australia and so on.
  • Regulation – Nadex is regulated by the US CFTC to ensure that traders’ capital is protected in several scenarios. In addition, Nadex will adhere to rules and regulations designed specifically to protect users.
  • Training – Nadex provides tutorials, user guides, PDFs, ebooks, webinars and several other useful resources through their Learning Center. This is a great place to find traders who want to help develop winning strategies. In fact, their webinars, in particular, can provide detailed guidance on short-term trading, scalping with 5-minute binaries, as well as details on creating an effective ATM or hedging strategy. Not to mention there are tons of trading tips and strategy information available as well.
  • Touch bracket – The strength of leverage but with downside weakness. Micro-lots make it too flexible.

 

 

Weakness

Despite its benefits, user reviews also reveal a number of drawbacks to Nadex’s offering, including:

  • List of instruments – Vs binary options brokers, such as Oanda and Stockpair, Nadex does not offer as many products. For example, they don’t provide one-touch monthly binaries.
  • Promotions & bonuses – Nadex blames choice reviews and ratings for not offering special offers and new customer bonuses.
  • Difficulty – Although Nadex is beginner friendly in some ways, some users may find their binary options trading to be more complex than other binary options providers.
  • Order Types – Some competitors offer more order types and therefore increased options for day traders.

Nadex Trading Hours

Nadex trading hours will be the same as the asset you are trading. This includes regular and electronic trading hours. From Sunday evening until the market close on Friday, US Eastern Time, Nadex offers trading 23 hours a day, with hours from 5pm to 6pm for exchange maintenance. If certain markets are closed due to holiday observance, Nadex will halt market trading during the holiday period.

Contact & Customer Support

Nadex exchange reviews are quick to praise the customer service component of their offering. If you have any problems, you can make contact by email or phone. Customer service representatives are reliable and knowledgeable. They can help you if the website is down and show you any legal regulations and necessary connections. They may also be able to explain why the order was cancelled. In addition, the survey shows agents have a strong technical grasp of the platform and tools. Simply head to the home page and then ‘Contact Us’ for a contact phone number in your location. Note customer support assistants are available via email or phone between 3:00 PM ET on Sundays and 4:30 PM ET on Fridays. Also, as a result of exchange accounting and other needs, agents are available 24 hours a day from Sunday at 3 to Friday at 4:30 ET. On the downside, Nadex doesn’t offer live chat support, although it plans to for some time in the future. This is a weakness pointed out in customer reviews and investment forums. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators. Agents are available 24 hours a day from Sunday at 3 to Friday at 4:30 ET. On the downside, Nadex doesn’t offer live chat support, although it plans to for some time in the future. This is a weakness pointed out in customer reviews and investment forums. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators. Agents are available 24 hours a day from Sunday at 3 to Friday at 4:30 ET. On the downside, Nadex doesn’t offer live chat support, although it plans to for some time in the future. This is a weakness pointed out in customer reviews and investment forums. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators. Nadex does not offer live chat support, although it plans to for some time in the future. This is a weakness pointed out in customer reviews and investment forums. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators. Nadex does not offer live chat support, although it plans to for some time in the future. This is a weakness pointed out in customer reviews and investment forums. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators. This means that new traders who want immediate access to customer support may want to look elsewhere. This is a shame as competitors continue to improve their customer service offerings, with some even facilitating live video chat. Note that customer service agents cannot advise you on income and taxes, including any form of capital and capital gains calculators.

Safety & Security

With account hacks no longer common, some traders understandably have security concerns. Fortunately, Nadex has made your capital safe and easy. A separate account at a top bank keeps all client deposits safe. In addition, the Nadex group makes it clear that they use smart encryption technology to ensure that all trading activities and personal information are secure.

Nadex results

Nadex is a sensible choice for traders who want to trade binary options in various time frames with powerful trading tools. Their offer also comes with a demo account, competitive pricing and an extensive Learning Center. However, Nadex comes with certain disadvantages. First, some competitors offer a broader product list. Second, Nadex can provide more in terms of bonuses and promotions. Overall, Nadex is a good choice for binary options traders and does it compare well to binary options brokers? Yes, US operated exchanges (not brokers) are able to meet and exceed the needs of veteran traders and traders. But rule 101, you must develop an effective options strategy. Failure to do so may effectively result in your gambling and put you at risk of losing your account balance. However, because of Nadex’s capped risk guarantee, you cannot lose more than your deposit.

Accepted Countries

Nadex only accepts traders from the United States.