Nadex is a US-based exchange that offers powerful trading tools and advanced features to traders of all experience levels. Nadex is not a broker, but an exchange regulated by the CFTC.

Nadex focuses on trading in binary options and spreads on the most commonly traded commodities, futures and stock indices. This Nadex review will evaluate all factors of their offering, including pricing, accounts and trading platforms – including NadexGo, the new mobile platform, before making a final verdict.

Summary History

Before looking at the potential for day trading profits, it can help to understand how Nadex has developed into a leading exchange. The exchange was launched in 2004 and was originally called ‘HedgeStreet’. The goal at the time was to create an electronic marketplace that facilitates trading in financial derivatives for retail investors. However, by 2007 HedgeStreet was closed.

UK-based IG Group Holdings bought the company and in 2009 HedgeStreet was renamed the North American Derivatives Exchange (Nadex). With sophisticated new technology and tools.

It’s worth noting that while the parent company is based in London and listed on the FTSE 250, Nadex’s headquarters is in Chicago, Illinois.

Products

Part of an improved product range showing more binary options options. In fact, their call and binary options cover a wide range of underlying markets, including commodity futures, equity index futures, and spot forex rates. Furthermore, Nadex members can take positions on all of the following assets on:

  • Stock 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</li >
  • Commodities – Crude Oil, Gold, Silver, Copper, Natural Gas, Soybeans, Corn

Traders can also benefit from a choice of expiry times, including intraday, daily and weekly expiry. But while using Nadex means you can start trading with just 5 min or 20 min stock index binary options, their product range does not include 60 second binaries or similar product, as some competitors do.

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

The new Touch Bracket™ contract’s micro lot size provides options for trading with low capital requirements. With an integrated floor and ceiling structure, whether long or short, contracts provide guaranteed precise risk control. No slip and no nasty shock. This provides the power of leverage but with managed risk – Maximum risk on any trade is the only capital needed to secure that trade. Once a trade is open, the capital requirements never change, even if held overnight, making these contracts as easy to rotate as day trading.

Minimum initial deposit

Nadex welcomes traders with just a $250 minimum initial deposit. This is really only half the industry average. In fact, Nadex has gone to great lengths to ensure that once you’ve funded your account, you can start trading various markets in binary and spreads instantly.

This low initial deposit is especially attractive to beginners, who may not want to risk too much capital when offsetting.

An even more powerful aspect of hedging is limited risk. The most you can lose on a binary option is the amount you paid to enter the trade, because the value of the binary cannot go below 0. As you can never risk more than the amount. you have in the account, your loss cannot exceed the deposit.

Margins and 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 need to pay any brokerage commission.

Instead, Nadex charges a flat fee of $1 per side, per contract. If binary options trading expires worthless, Nadex will waive the payment. Transaction feesch and this payment is Nadex’s sole source of income. This means that they are not dealing with their own traders.

Some suggest this could mean attractive income potential as your transaction costs are lower. In terms of payouts, the maximum loss and profit is calculated through the entry/exit time, as well as the contract type.

The payouts can exceed 100% while the losses are limited to the initial invested capital. Because you cannot make 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, bid/ask spreads in individual markets, as well as prices, are determined only by participating buyers and sellers. That said, as a CFTC regulated exchange, Nadex works with many market makers to ensure viable liquidity and bid/ask spreads.

Nadex Call goes viral

Nadex also offers a unique product that they also call the Call Call spread. They are offered on several markets, including stock index futures, commodities, and forex. But fear not, understanding these contagions is also simple.

You can trade the price of a market like EUR/USD in a range. As the price of EUR/USD fluctuates, the spread also increases, although it remains within the predefined upper and lower limits.

It should be emphasized that if the value of EUR/USD exceeds one of the limits, the value of the EUR/USD spread will come to a standstill at whatever limit it violates.

At the upper limit, the spread stops at the maximum value. At the lower limit, the spread is minimal and will not lose any more value, no matter how far down the underlying market.

As a result, you gain advanced control over your risk-reward ratio. This is because you decide your risk parameters through call spread limits.

You have intraday and daily spreads. Each will require a careful spread strategy. This is the hope where the Nadex trading platform comes into play. Details of which can be found further below.

You hopefully now know what a Nadex spread is. However, for a more detailed analysis of forex and binary spreads, visit the official website. You will also find contract specifications.

 

 

Take advantage

The spread Nadex advantage in terms of leverage also needs to be explained. Normally, forex traders in the US, for example, can’t get more than 50:1. Nadex spreads are fully collateralized and not related to profits. They are not a leveraged trading product, but more like a short term option. However, in many cases, the cost of a Nadex spread can be lower than trading the underlying market outright.

This low cost can effectively give you high reward versus risk. You also have a certain degree of risk control, as your maximum risk is limited. Alternatively, you can exit early to limit further losses. Alternatively, you can seize your profits before the spread expires.

Other transaction fees

Nadex review was quick to highlight their pricing structure which is quite transparent. As a result, traders don’t have to worry about a bunch of hidden fees that will cut into their end-of-day capital. Having said that, there is a $25 resend fee. If you need to pay any other fees, you will be met with a clear notice.

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

Unfortunately, user reviews are quick to point out that Nadex often lacks account promotions and special offers compared to other binary options providers. However, they will sometimes run free deals days and other similar offers. You will need to check on their official website for any current details on these.

Nadex Exchange

One of the most important components of a trader’s experience is the platform. This is where you will spend most of your time, doing market research and executing trades.

Results from Nadex’s proprietary platform reviews are mixed. While you have everything you need, from technical indicators to free real-time market data feeds, the platform feels somewhat out of place. Therefore, new traders may want to get a feel for the platform with a demo account first.

How to trade

On the plus side, setting up the platform is relatively straightforward. Just go to the ‘Finder’ window on the left side of the platform to select an asset. This will give a clean selection of expiry time frames to choose from.

Note all times listed in Eastern Time (ET).

Once both the asset and the term have been selected, your ‘Markets’ window will update. You will then be met with the price available for trading. Normally you can expect about 10 levels to choose between.

Nadex binary options range from 0 to 100. The former is when the payout option does not complete with money, while the latter reflects an outcome that has occurred.

Your transaction ticket will then confirm:

  • Expiration Time
  • Price
  • Bidding size
  • Current bid and asking price

You will then need to choose whether to buy or sell and specify the trade size. You also have the option to change the specified price above or below the current level to see if your position will be ‘filled’. As a regulated exchange, Nadex will never be otherwise on your trade. Your order will only be filled by another merchant.

Of course, you can close your trade at any time. This will allow you to realize profits or reduce losses. Finally, the metrics your ticket displays will highlight the results if you allow the option to expire.

Then you just need to press ‘Place Order’. If it matches, you will be able to view your trade in the Open Positions window. However, if it is only partially matched, it will automatically be moved to the Work Orders screen. You will then receive a confirmation email with the details of your transaction and another transaction when the order is processed.

 

 

Foundational Judgment

As forex and binary options customer reviews explain, the platform is quite user-friendly allowing even for beginners to understand how easy it is to trade. Access to historical data is given, as well as all the symbols and tools needed to interpret price action.

 

Mobile Application

Mobile app reviews are quick to point out that Nadex’s new Progressive Web app called NadexGo is one of the most comprehensive on the market.

As soon as you finish downloading NadexGo, you will start to appreciate the slick user interface and concise design. In fact, the trading ticket trading area looks extremely similar to the desktop platform.

Conducting research is simple while setting up alerts is quick and hassle-free. You can also access the same free signals while viewing your order history very simply. On top of that, you can use binary options app tutorials to help you get the most out of your Apple or Android app.

Overall, mobile apps offer a smooth transition from a desktop-based platform. Furthermore, NadexGo is actually powered by a browser-based interface that you can open from within your mobile device. All of this should help ease the concerns of traders who are worried that they will not be able to execute the 20 minute or hourly options strategy effectively.

Payment Methods

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

  • Debit Card
  • Transfer
  • ACH Transfer (US residents only)
  • Paper test (US residents only)

Note that bank verification will be required for some transactions and credit cards are not accepted. Users may need to pay a withdrawal fee if they use wire transfer, which will cost $25 but is normally processed within the same business day. Whereas ACH transfers are free but usually take 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, proofs and any other issues, as these will depend on the payment method and are subject to change. change over time.

While these payment methods are pretty industry standard, some user reviews have complained about the lack of option to fund the account or receive profits through PayPal.

Nadex Account

Opening a Nadex account is relatively simple. There are only two account types to choose from, a US personal account and an international individual account available to residents of more than 40 other countries. For a complete list of countries, visit the Account Types page at the Nadex website.

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

  • Date of Birth
  • Residence address
  • Social security number or national identification number

Note that you may have to upload supporting documents before you can start trading. You will also need to fund your account. When you sign up, you will also be provided with information on how to close your account.

Demo account

Nadex offers a free practice account. Once you have the demo login details, you can use the same platform and real-time data as those with a live trading account. Signing up for a demo account is the ideal way to practice making profits without risking real capital. You can practice scalping strategies, intraday strategies or any other strategy.

 

 

It is also worth noting that there are certain differences between the demo and live trading. For example, a practice account cannot replicate the psychological pressures that come with bringing real capital into the stream.

If your demo account is not working, you can contact customer support. You can also check out the Knowledge Center for instructions on how to get the most out of the trading platform.

 

 

Additional Features

Nadex reviews compliment the resources available. All of these can help you understand how it all works on Nadex. Several tools can also help you earn an income and work towards personal success, including:

  • Advanced Charting – Sophisticated charting and technical tools can be used to develop a wide range of techniques, including monetization (OTM) strategies. For example, you can also use candlestick charts, Fibonacci retracement and MACD indicator to help you build a binary options strategy, with favorable risk to reward ratio.
  • Nadex spreads – They are similar to binary options as they have maximum possible profit and loss. However, they have a variable payout at expiration instead of the binary’s all-or-nothing outcome.
  • API – There’s a lot of information online about how to use the rest of the APIs and fix bugs, including Nadex’s unofficial python API and documentation.
  • Market data – Nadex provides real-time representational price data that matches the prices of the underlying market. There is no delay. Nadex does not charge additional fees for feeds.
  • Trading News – Some use complex models and trading journals to fabricate and enhance binary stranglehold, for example. However, some traders focus on market news and luckily, Nadex provides daily action video and commentary on important market events. This content is created specifically for Nadex by a team of experienced and trusted analysts from various trading platforms.
  • Education – From weekly webinars to eBooks and trading courses – there’s a lot of information to support your trading growth in the Nadex Knowledge Center. On top of that, you can also go online to find forex binary options videos and strategies for trading stock indices with limited risk in volatile market environments.

 

 

 

Regulations & License

As a result of hacks and promises from brokers to become a trading millionaire, it is increasingly important to choose a place to trade regulated binary options. So, 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 out their official website for verification.

This regulation will also put merchants outside the US at ease. Whether you’re in the US or one of the more than 40 other eligible countries – whether it’s Mexico, Japan or the UK, Nadex aims to treat all consumers fairly.

Benefits

There are several obvious advantages to choosing Nadex, including:

  • Management – Manage orders and market quotes quickly and easily on Nadex system.
  • Customer Service – User reviews report high levels of satisfaction with the extensive customer service provided.
  • Market Makers – Nadex has attracted market makers who can lead to increased liquidity for larger and larger traders.
  • Fee Structure – When you choose Nadex vs IQ Option and Cboe, you realize that Nadex offers a competitive, 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 merchants from over 40 countries. This means Nadex is a viable option for UK residents, as well as those from the US, Canada, Europe, Asia, Australia and more.
  • Regulation – Nadex is regulated by the US CFTC to ensure traders’ capital is protected in certain situations. Furthermore, Nadex will be subject to rules and regulations specifically designed to protect consumers.
  • Training – Nadex offers tutorials, manuals, PDFs, eBooks, webinars, and several other helpful resources through their Knowledge Center. This is a great place to go for aspiring traders who need help developing winning strategies. In fact, their webinars, in particular, can convey detailed instructions on short-term trading, scalping with 5-minute binaries, as well as details on building an ATM strategy or effective risk prevention. Not to mention that there are tons of trading tips and strategy information available.
  • Touch Brackets – Leverage power but with downside. Micro-lots make them extremely versatile.

 

 

Restrictions

Despite the benefits, user reviews also reveal some downsides to Nadex’s offer, including:

  • Tools List – Binary Options Brokers Vs, like Oanda and Stock Pair, Nadex does not offer a wide range of products. For example, they don’t offer one-touch monthly binary.
  • Promotions & bonus – Nadex failed in reviews and option ratings for not providing special offers and bonuses to new customers.
  • Difficulty – While Nadex is beginner-friendly in some ways, some users may find their binary options trading more complicated than other binary options providers.< /li>
  • Order Types – Some competitors offer more order types and thus increase choice for day traders.

Nadex Trading Hours

Nadex trading hours will be the same as the asset you are trading. This includes both regular and electronic trading hours. From Sunday night until market close on Friday, US Eastern Time, Nadex offers trading 23 hours a day, with a break from 5 p.m. to 6 p.m. for exchange maintenance.

If a particular market is closed due to holiday compliance, Nadex will stop trading that market during the holiday period.

Contact Customer Support

The Nadex exchange review is quick to commend the component of customer service they provide. If you have any problems, you can contact us by email or phone. Customer service representatives are reliable and knowledgeable.

They can help you if the site goes down and direct you to any necessary legal rules and extensions. They can also explain why an order has been cancelled. In addition, reviews show that dealers have a strong technical grasp of the platform and tools.

Simply visit the homepage and then ‘Contact Us’ for the contact phone number at your location. Note the customer support assistant is available by email or phone from 15:00 ET on Sunday to 16:30 ET on Friday. Also, as a result of exchange accounting and other requirements, dealers are available 24 hours a day from Sunday at 3 to Friday at 4:30 ET.

On the other hand, Nadex does not currently offer live chat support, although it is planned at some point in the future. This is a drawback that is pointed out in both the customer review forums and the investment forums.

This means that novice traders who want instant access to customer support may want to look elsewhere. This is a shame as competitors are continuing to increase their customer service offerings, with some even facilitating live video chat.

Note that customer service agents cannot advise you on revenue and taxes, including any capital gains calculations and reports.

Safety & Security

With account hacks no longer uncommon, some traders can understand security concerns. Fortunately, Nadex has made it relatively easy to keep your capital safe. Segregated accounts at leading banks keep all customer deposits safe. Furthermore, the Nadex team clearly states that they use smart encryption technologies to keep all transactions and personal information safe.

Nadex’s verdict

Nadex is an affordable choice for traders who want to trade binary options across multiple timeframes with powerful trading tools. Their offering also comes with a demo account, competitive pricing and an extensive Learning Center.

However, Nadex does not come with certain downsides. First, some competitors offer a broader product list. 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? Yes, the US-based regulated exchange (non-broker) has the ability to meet and exceed the needs of both new and veteran traders. But rule 101, you must develop effective options strategies. Failure to do so may result in you gambling effectively and put you at risk of losing your account balance. However, due to Nadex’s limited risk guarantee, you cannot lose more than your deposit.

Accepted countries

Nadex only accepts traders from the United States.