Nadex review – Call spreads, Strategy, Demo and How To’s

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

Nadex review

Ideal for short-term trading

By Jitendra Soni 10 March 2020

Our Verdict

Nadex is a great choice for binary options trading for both US and non-US residents.

  • Demo account
  • No hidden charges
  • Low initial funding

Against

  • No mobile apps
  • Web UI has a learning curve
  • No live support

Nadex, or North American Derivatives Exchange, is a Chicago based exchange. Founded in 2004 as HedgeStreet Plc, it was bought over by London’s IG Group and was renamed as Nadex in 2009. It is regulated by CFTC (Commodity Futures Trading Commission).

Nadex allows you three different options to trade in – binary options, touch brackets, and call spreads. It is the first regulated US trade exchange that allows you to trade on all the three options mentioned above, based on forex, commodities, and stock indices.

Unlike unregulated offshore trading entities, Nadex offers a transparent and legal way to trade in binaries. It prides itself for offering a transparent, stable and a reliable platform which at present offers more than 5,000 contracts on a daily basis.

What does Nadex offer?

Nadex welcomes users from over 41 countries worldwide and offers a demo account with $25,000 virtual funds to test the platform before signing up. It offers only one type of account for all the traders regardless of the fact that you’re US citizen or an international trader, individual or a corporate firm.

The account can be opened with a deposit of $250, which is actually way less than the industry average. Low initial funding makes Nadex a preferred platform for beginners who are not willing to commit a huge amount right at the start. Interestingly, Nadex allows users to keep their demo account even after they’ve signed up with the live account.

(Image credit: Nadex)

US citizens can open an account using a debit card, ACH, wire transfer, or a paper check while non-US users can use a debit card or an international bank transfer to fund their account. Once your account is funded, you can start trading immediately.

Since the platform does not allow you to invest more than the funds in your account, the losses are automatically limited to the amount lying in the account.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

To start, you need to provide:

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

Types of trade

Traders can trade binaries and spread on stock indices, forex, commodities and crypto. It also allows you to trade on macroeconomic indicators and events.

The platform offers you three different type of accounts:

Binary Options: This is more or less like a bet where users speculate where an asset or market will be, at a specific time or date. These are simple yes or no bets which just have two possible outcomes, you win or you lose.

Touch Brackets: More like a stop-limit trade in the stock market, Touch brackets lets you enter into a trade at your pre-decided price point and automatically execute the trade.

Call spreads: These are a variant of Touch Brackets however; the trades have a time-based expiration rather than price-based.

All three variety trades are available in four different types of trading options. The list is as below:

  • Indices: US 500, Wall Street 30, US Tech 100, US SmallCap 2000, FTSE 100, Germany 30, Japan 225, China 50
  • Forex: 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

Since Nadex is an exchange rather than a brokerage, orders placed here are submitted directly to the exchange rather than through an intermediary. Hence no brokerage or commissions need to be paid.

It charges a fixed fee of $1 per transaction, per side with a cap of $50 for a single purchase. This fee is Nadex’s only source of revenue as it does not trade against their traders. In binary options, Nadex waives the settlement fee in case the trade expires.

The fee structure here is very transparent and apart from the transaction fee it only charges a $25 fee for returned deposit. The platform keeps running promotional offers running free trading days where you will not be charged any fee for trading. These offers are regularly updated on the website.

(Image credit: Future)

Nadex allows you to trade via their website on the computer or mobile phone. The mobile app is called NadexGo and is available directly from the website rather than either the iOs or Android app stores. It offers a sleek user interface and a neat design. The design is kept quite similar to the web platform. Since this is a web app and opens on any web browser on your mobile regardless of the OS, it is highly responsive and loads very quickly.

While other platforms offer many more options to trade in, one of the biggest limitations of Nadex is the number of assets available to trade on the platform. Though the presence of a unique product like binary options is good enough to offset the disadvantage.

(Image credit: Nadex)

Support and reputation

Support on Nadex is available between 3:00 PM EST Sunday through 5:00 PM EST Friday. The support team can be contacted via a US toll-free number, an international number, or email. Unfortunately, there is no live chat option for new users who need hand-holding or users who have some urgent queries.

As a platform, Nadex is one of the most trusted and recognized brands. It has even received multiple awards from industry watchers for its transparent and reliable binary options platform. Nadex was also awarded as best US broker for the year 2020 by Fair Binary Options.

Final verdict

Nadex offers a level playing field for all the traders and is the best option in case you want to start trading in binary options. While the web platform is fairly simple and doesn’t have the most modern design and features, it still does what it is supposed to do. Missing native mobile apps is a disappointment. If you’re in for a high-risk high-reward sort of trading, then Nadex is the best platform for you.

Nadex Review

In this Nadex review we will see why this platform is the #1 for US traders.

What Is Nadex?

Nadex is a US regulated platform, where you can trade binary options. You can visit their website here.

It is owned by the U.K based IG Group, a FTSE 250 global financial services firm.

They have been in operations since before binary options became a buzzword. In business since 2009, they have helped the US market familiarize themselves with binary option trading.

Nadex’s headquarters are located in Chicago,IL in the United States. Their business philosophy centers on the twin values of transparency and simplicity.

Nadex Is An Exchange

In the binary options industry, we are used to dealing with brokers. Nadex is not a broker. Nadex is an exchange. There is a significant difference between a broker and an exchange.

An exchange gives you direct access to the market, by matching buyers and sellers directly. Brokers are the go-between that connect you to their partners who then give you access to the market.

An exchange offers many advantages over a traditional broker. The most important is transparency.

Brokers use a number of routes to let you pitch in the market. The reputable brokers only pursue the ethical routes. Many others use unethical tactics. For example, a broker may take an opposite position to you (trade against you) in order to get you access.

There is no way to know for sure when brokers use unethical practices. Which is why an exchange is a better choice.

Nadex only makes money by taking a $1 fee per contract you enter into and $1 for each contract you close, offering you direct access to the market.

  • Nadex makes no money when you lose.
  • They do not take broker commissions.
  • The company explicitly states the contract specifications for each asset they support on their website.
  • You do not have to open an account to access this information.

You will not find this level of transparency with most brokers.

Nadex Regulation and Fund Protection

The binary options broker industry is awash with European-regulated brokers, many of whom have maintained excellent records for over a decade now.

However, it is refreshing to have a US-regulated broker on the premium list of reputable brokers. Nadex is one of the only US-based CFTC regulated exchanges. The US regulator is the Commodity Futures Trading Commission (CFTC).

The CFTC designates Nadex as a ” Derivatives Clearing Organization” and “Designated Contract Market”.

As a CFTC regulated exchange, Nadex holds all member funds in segregated accounts in top-tier US banks—BMO Harris Bank, Fifth Third Bank. This level of fund protection is not offered by most regular binary brokers.

Nadex Trading Platform

The Nadex trading platform is a proprietary platform. Everything about the platform centers on simplicity:

  • To access the platform, all you need is a username and password.
  • No download is needed (it is web-based).
  • The platform has no access fees either.
  • You get real-time indicative data.
  • The Nadex platform is easy to use and well arranged. Additionally, you can customize it. For example, you can make a watch list to track the assets you prefer.
  • It also offers robust charting and technical analysis tools.
  • Nadex also has mobile versions of its trading platform for convenient, on-the-go trading. It is called NadexGo. The apps are available for i0S (Apple iPhones and iPads) and Android operating system.

You can trade on Nadex on your Windows, Mac, or Linux PC, as long as you have a web browser and an internet connection.

An awesome feature is its cloud multi-device sync. For example, you can place an order using the Nadex trader on your PC. Then later on, for example in transit, you can use the Nadex mobile platform to manage or exit the trade.

Assets and Expiration Times

TRADEX supports several assets in multiple classes. Furthermore, TRADEX even offers new asset classes in addition to the traditional classes.

It offers assets in the usual Currency Pairs, Stock Indices, and Commodities classes. In addition, it offers assets in the Economic Events class and even allows you to trade Bitcoin.

When writing this Nadex review, we found out that the platform supports following assets:

Asset Class Number of Assets Example of Assets
Currency Pairs 10 EUR/USD, USD/CAD, EUR/JPY
Stock Indices 8 Dow, FTSE, DAX
Commodities 7 Gold, Crude Oil, Soybeans

The expiry time differs between assets. Assets like Currency Pairs may have an expiry time of as low as FIVE (5) minutes, while assets like Stock Indices may have an expiry time of as high as ONE (1) week.

Nadex Account Types

Nadex offers four standard types of trader accounts.

The account types include:

  • Individual Account for US Residents
  • Individual Account of Non-US Residents
  • Trust, Partnerships, LLC’S, Corporation Accounts for US-based entities
  • Permanent Demo Account

Opening an individual real trading account takes minutes.

Nadex offers everyone a free permanent demo account that you can open in less than one minute. Literally! You only need to input your name, country, phone number, and email address to create a demo account.

This is what you get with the Nadex Demo Account:

  1. You get to practice with a simulated $25,000 unlimited demo
  2. You can continue demo trading for as long as you like. It is your permanent practice account
  3. You do not have to open a live account nor make a deposit before you get access to demo trading
  4. Demo accounts have access to the same full-featured trading platform as live accounts

The Nadex demo account is a great way to try out this platform.

Deposit and Withdrawal

Nadex offers multiple deposit and withdrawal options. Its minimum deposit is $250.

Payment Method US traders Non-US traders
Deposit Withdrawal Deposit Withdrawal
Debit Card Yes Yes Yes Yes
Wire Transfer Yes Yes Yes Yes
ACH Bank Transfer Yes Yes No No
Paper check Yes No No No

Nadex Review: Fees

Nadex charges a contractual fee of $1 to open a contract and another $1 to close a contract. However some exceptions exist.

  • The standard contractual opening fee is $1.
  • They do not charge the contractual closing fee of $1 if you let your position expire out of the money.

Aside from contractual opening and closing fees of $1 each, the only other extra fees are the standard $25 fee for wire withdrawal and $25 fee for a returned check.

Therefore, deposits and withdrawals are free except for the wire withdrawal. The $25 fee for wire withdrawal is the standard fee in the financial industry.

Nadex Learning Center and Support

Nadex boasts of an expansive learning center. Thus, it is very clear that Nadex is committed to ensuring clients succeed in the market. This is because it sticks to their bottom line.

They make money when you open and close contracts. Accordingly, you wouldn’t keep opening contracts if you are largely unsuccessful. Therefore, it is in both in your interest and Nadex’s that you have long term trading success.

The Nadex learning center contains:

  • Extensive educational courses
  • Resources, such as Videos, Webinars, e-books, and even trade examples
  • News and Market Commentary
  • Glossary
  • FAQ

You can contact Nadex via Phone and Email. Response is terrific in terms of both speed and how it addresses the underlying situation which prompted you to initiate contact.

Is Nadex A Good Broker?

As you can see in our Nadex review, the platform is awesome. The biggest appeal of Nadex is that it is an exchange and not another run-of-the-mill broker. That makes all the difference in the world of binary options.

With Nadex you are certain that they are not trying to play a fast one on you. That certainty, complemented by simplicity and utmost transparency, makes Nadex a fantastic binary options company to choose for your trading activity.

Nadex continues to innovate in the binary options trading industry (for example they recently introduced Touch Brackets)

Its appeal is compounded by being regulated by the CFTC, offering services to US and non-US residents alike, record low fees, a robust trading platform, versatile asset classes giving you the ability to trade US and global indices, forex, commodities, economic events and Bitcoin; and a lifetime demo account.

Nadex Review 2020

Nadex is the largest CFTC-regulated binary options exchange in the US, offering flexible trading on Forex, Commodities and Stock Indices. The platform is user friendly and commission fees competitive compared to other online brokers.

Nadex Review 2020, Pros & Cons
  • Strict regulation
  • Segregated client funds
  • Competitive commissions
  • Mobile trading
  • Vast educational materials
  • No CFDs
  • Limited FX currency pairs
  • Limited funding options
  • No cryptocurrencies

In this detailed Nadex review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.

Nadex is not ranked in our best forex brokers, best stock brokers, best cfd brokers, best crypto brokers or best online brokers categories. You can use our free broker comparison tool to compare online brokers including Nadex.

Nadex Review: Summary

Nadex (North American Derivatives Exchange™) is the first and largest US-based exchange offering short-term binary option, Touch Bracket™ and call spread contracts trading on Forex, Commodities, Stocks, Indices, Metals & Energies. They are regulated by the CFTC and have over 1250,000+ clients all over the globe. Contracts are available to trade six days a week, 23-hours a day, with over 10,000 hourly, daily, and weekly contracts going through the exchange.

Nadex is an exchange that differs from online brokers who tend to offer CFD trading, such as parent company UK-based brokerage giant IG Group. They instead offer 3 different ways to trade intra-day, daily or weekly; Binary Options, Touch Bracket™ contracts and Call Spreads. These methods of trading help to ensure that you know your maximum potential profit or loss upfront.

Opening a Nadex account online is easy and it can be funded using a debit card, with a minimum opening balance of $250. They provide clients with free real time market data and trading software, including robust charting and analysis tools. Trading fees are very competitive at just $1 per contract side, with no other fees. They have their very own proprietary desktop and mobile platforms for trading a range of markets all from one account.

Nadex Review: Features

Nadex Binary Options

The Nadex Binary Options method of trading involves speculating on whether a market will be above a certain price at a specific time, or not. If a trader thinks that it will, they would buy. If they think that it wouldn’t, they would sell. Binary options allow you to control the risk and see the possible outcomes before placing a trade.

Nadex Review: Binary Options Trading

Nadex Touch Bracket™ Contracts

A Nadex Touch Bracket enables you to make trades based on price action within a predefined price range. Each contract has a floor and a ceiling offering a natural price target with known risk and reward. This structure can maximize effective leverage and provide natural profit targets.

Nadex Review: Touch Bracket Contracts Trading

Nadex Call Spreads

Nadex Call Spreads are a single contract that have a floor-to-ceiling trading range which offers defined risk. The floor represents the lowest level the contract can trade, and the ceiling represents the highest level a contract can trade. Nadex Call Spreads will only expire at the pre-determined time, unlike Touch Brackets which immediately expire if the floor or ceiling is touched.

Nadex Review: Call Spreads Trading

Nadex Review: Regulation

Nadex is based in Chicago, United States and regulated by the Commodity Futures Trading Commission (CFTC) as a financial exchange. The CFTC is a US government agency overseeing futures, options and swaps trading. Its mission is to protect market users and the public from fraud, manipulation, abuse, and systemic risk.

As an exchange, Nadex uses third party market makers to keep liquidity at high levels, as well as matching technology that automatically matches buyers and sellers in the markets. They do not take any positions in the markets themselves. They generate income solely from exchange fees, not from taking positions in the market. Nadex member funds are held in segregated accounts with major US banks (Fifth Third Bank, BMO Harris Bank).

Nadex are part of the IG Group (LON: IGG) who are a FTSE 250 global financial services firm that is headquartered in London, United Kingdom. IG Markets Ltd and IG Index Ltd are authorised and regulated by the Financial Conduct Authority (FCA). These regulations help to ensure clients that they are trading with a trustworthy and transparent company. The personal information of top management is freely available on their website, which helps to add further credibility.

Nadex has multiple market makers that are contracted to provide liquidity to the markets. This includes Market Risk Management, Inc. (“MRM”) who are a subsidiary of the IG Group and an affiliate of Nadex. All market makers are Exchange members and thus subject to Nadex rules.

Nadex Review: Countries

Nadex accepts citizens and residents of the United States as clients. They also accept residents of most European countries along with some other countries you can see below.

Nadex Review: Eligible Countries

Unfortunately, traders from most Asian, African, and South American nations are not eligible to trade with them at this time.

Some Nadex broker features and products mentioned within this Nadex review may not be available to traders from specific countries due to legal restrictions.

Nadex Review: Trading Platforms

Nadex offer their own proprietary in house developed trading platform for desktop and NadexGO™ for mobile. The sleek and professional platforms connect traders directly to the Nadex exchange, giving real time pricing, data and rapid trade execution speeds.

Trades can be entered and manged between the desktop and mobile platforms. This makes it convenient for those who need to access their account and manage trades whilst on the go. Both platforms offer all of the products and markets from Nadex, including charting with all features, drawing tools and technical indicators.

Nadex offer a free demo account that has $25,000 of virtual funds and will enable you to try the desktop and mobile platforms. This can help you to familiarise yourself with the platforms and to test your trading strategies before trading on a live account.

Nadex Review: Trading Platforms

Nadex Trading Platform

The Nadex destop platform lets you trade via most modern web browsers, directly through to the North American Derivatives Exchange™ (Nadex) and global markets.

Free Trading Platform

The Nadex platform provides users with free real-time indicative data. There are over 5,000 contracts traded daily that can be filtered by asset class, expiration, and price. There is only a small fee charged for each trade transaction.

You do not need to download or install any software to use the desktop platform which runs on Windows, Mac, or Linux. All you need is an internet connection along with your account username and password. Traders can place a trade via the desktop platform and manage it later via the Nadex mobile platform if they wish.

Nadex Review: Free Trading Platform

Depth of Market & Advanced Orders

The depth of market view is designed to be user friendly with a simple click and drag to place and modify orders. You can see the bid/ask prices and volume with depth on the order ticket.

The Market Order with Protection (MOP) is a form of slippage protection which prevents an order from being filled too far from the intended price. Limit orders are also supported.

Nadex Review: Depth of Market & Advanced Orders

Free Real-Time Data & Charts

The platform streams real-time indicative market data directly from the exchange with bid and offer prices along with the volume of contracts available. Orders are sent directly to the exchange without going through an intermediary broker.

Users can conduct a full range of technical analysis on charts and use the price ladder to place a buy or sell trade conveniently from within the same window. You can go from selecting your markets to chart analysis to order placement, all from one screen.

Nadex Review: Free Real-Time Data & Charts

NadexGO Mobile Trading Platform

The NadexGO mobile trading platform lets you trade whenever, wherever and however you want. It offers the same full range of products, features and markets as the desktop platform including full charting and technical analysis tools. The platform has a sleek and intuitive design, with next generation technology providing real time direct market access (DMA).

Nadex Review: Mobile Trading Platform

Nadex Review: Trading Tools

Whilst Nadex do not offer any standalone trading tools, the Nadex platform has an abundance of tools built in for conducting detailed chart analysis. This includes technical indicators, graphical objects, annotations and other analytical tools.

It is easy to access and use the tool ribbon from within the platform. You can choose from a combination of popular analysis tools such as moving averages, Bollinger Bands, relative strength index, Fibonacci, support/resistance lines and much more. Nadex have a tutorial video on the website that explains how to use the tools on your platform.

Nadex Review: Education

The Nadex website has an abundance of freely available educational materials.

Educational Courses

The Nadex website has a variety of free educational courses tailored to traders of all experience levels. They cover a range of subjects such as binary option, Touch Bracket™ and call spread contracts, trading strategies and more. The courses are very detailed including annotated images and a quiz to test your knowledge.

Nadex Review: Educational Courses

Educational Videos

On the Nadex website there is a wide range of educational videos suitable for all levels of traders. These videos fit into categories which are Nadex, binary option, Touch Bracket™ and call spread contracts, how to guides. The videos are very well explained and easy to digest.

Nadex Review: Educational Videos

Trading eBooks

Nadex have a selection of free trading eBooks that are available to download and can help improve trading knowledge on a range of subjects, including binary options and advanced guidebooks on trading volatility and trend direction.

Nadex Review: Trading eBooks

Webinars

Nadex frequently host webinars covering a number of topics including market analysis, binary option, Touch Bracket™ and call spread contracts and more. Users can register for up and coming webinars and also view previous webinars on demand.

Nadex Review: Webinars

Trade Examples

Another very useful section of the Nadex website is the trade examples where they clearly explain with annotated charts how to trade binary option, Touch Bracket™ and call spread contracts. This would be particular useful for beginners and those who have perhaps only previously traded forex and CFDs.

Nadex Review: Trade Examples

Glossary

Nadex have a glossary of terms that includes some of the more commonly used trading terminology along with explanations of each.

Nadex Review: Glossary

Nadex Review: Trading Instruments

Nadex clients can trade multiple markets from one account including stock index futures, forex, commodities and economic events.

Stock Indices

Nadex clients can trade binary options and spread contracts based on the underlying futures prices of stock indices from the US and global stock market, without using ETFs or index futures. Stock indices available include Wall Street 30, US 500, US Tech 100, US SmallCap 2000, China 50, FTSE100, Germany 30 & Japan 225.

Nadex Review: Stock Indices Trading

Forex

The foreign exchange (forex) market is the largest in the world in terms of volume, with a daily turnover of over $4 trillion and known for its vast liquidity. It is open 24/5 and decentralised across the global banking system.

Nadex offer clients 10 of the most popular forex currency pairs to trade as binary options and call spreads. They are available to trade 23 hours a day, 6 days a week. FX pairs offered are the EURUSD, GBPUSD, AUDUSD, EURGBP, USDCAD, USDCHF, AUDJPY, USDJPY, GBPJPY & EURJPY.

Nadex Review: Forex Trading

Commodities

Commodities are basic to our lives and have been traded for many years, remaining popular and one of the largest markets to this day. Nadex offer binary options and call spreads trading on commodity futures prices, including oil, gas, gold, silver, grains and more.

Nadex Review: Commodities Trading

Nadex Review: Trading Accounts & Fees

Nadex has a selection of accounts for individuals, trusts, and corporate entities to trade binary options and spreads. Each account has the same direct order placement on the exchange and the same transparent data.

The account types are differentiated according to jurisdiction and use.

  • Individual account for individuals who are US residents
  • Individual account for non-US residents from eligible countries
  • Business account for trusts, partnerships, LLCs, and corporations
  • Demo account for “paper trading” with $25,000 in virtual money

The costs of trading call spreads and binary options via Nadex are very competitive, with the fee being $1 per contract side, $2 round turn. For example, 100 contracts traded would equate to $200 in trading fees in/out before expiration. If held to expiration, the settlement fee is $1 so again, it would be $200 round turn. If the trade finishes worthless, there is no additional fee, just the entry to trade. The real-time data streams and trading platform are free to use.

As broker fees can vary and change, there may be additional fees that are not listed in this Nadex review. It is imperative to ensure that you check and understand all of the latest information before you open a Nadex broker account for online trading.

Nadex Review: Customer Service

Nadex offer support via email and telephone. They can be reached 24/5 during normal US office hours. Unfortunately, there is no online live chat support at this time.

Nadex Review: Deposit & Withdrawal

Nadex offer wire transfer, debit card and ACH (US only) funding options. Debit card is the quickest funding method with no fees and funds instantly available in your Nadex account. There is a one-time debit card verification process for any new debit card deposit. Clients are however unable to withdraw funds back to a debit card.

Wire transfer deposits are processed as soon as they receive notification from the bank which is typically within 24 hours. Wire withdrawal requests received before 4pm ET, Monday through Thursday, or before 3:00pm ET on Friday will be processed on the same business day. All requests received after the cut-off time will be processed the following business day. They charge a $25.00 processing fee for wire transfer withdrawals.

As a CFTC-regulated exchange, they must keep money safe and secure by using powerful physical, electronic, and procedural safeguards that meet or exceed industry standards.

Nadex Review: Account Opening

Opening an account with Nadex requires completing a quick and easy online application that’s both private and secure. It takes just a few minutes to answer a few questions and upload the required documents as part of the KYC process. Once your account has been approved, you can fund it and commence trading within minutes. There is however no obligation to trade until you are ready.

Nadex Review: Account Opening Form

Nadex Review: Conclusion

Nadex are a strictly regulated and industry leading exchange when it comes to short-term binary option, Touch Bracket™ and call spread contracts. They offer clients around the globe flexible trading on Forex, Commodities and Stock Indices. The Nadex platform is very user friendly and can be used on multiple devices simultaneously. Commission fees are very competitive and they have a vast array of educational materials to help improve trader’s knowledge.

Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures and economic events.

Min $250 Deposit

Nadex is the largest CFTC-regulated binary options exchange in the US, offering flexible trading on Forex, Commodities & Stock Indices. The platform is user friendly & commission fees very competitive.

7 Binary Options

North American Derivatives Exchange™ (Nadex) is a premier US-based platform for binary options, call spreads, and touch bracket contracts. It is the first of its kind to operate in the US, offering limited risk, low cost, and legal way to trade in binary options in the country. Before its launch in 2004, traders in the US had to transact with unregulated offshore entities, but issues with reliability and fidelity were characteristically inherent.

In the world of binary options, traders are used to dealing with brokers. Nadex, formerly known as “HedgeStreet,” is not a broker, but an exchange. The differences between brokers and exchanges are significant and worthy of attention. Brokers are the go-between guys that connects you to big players in the markets, who then give you access to their trading platforms. Exchange gives you direct access to the market by matching buyers and sellers directly. As an exchange, Nadex gives you a glut of advantages over traditional brokers; the most vital are transparency and dependability.

Regulated by the CFTC (Commodity Futures Trading Commission) and a unit of IG Group (LON: IGG), Nadex secure and innovative platform for traders to participate in the market. As a suitable exchange for seasoned and novice traders alike, this Chicago-based platform has received recognition and awards from industry watchers for its steadfastness and transparency. Most notably, it was named the best US exchange by the Fair Binary Options for the year 2020.

Why Trade on Nadex?

As mentioned previously in this document, Nadex, is the first and largest US-based exchange that offers direct low cost and legal means to trade binary options, call spreads, and touch bracket contracts with user-defined reward/risk. Unlike some brokers, this exchange offers participants a level-playing ground for trading, and funds are secured in leading US banks.

Low Trading Costs

Opening an account is absolutely free, and with a low minimum opening balance, you can use your debit card and start trading immediately. Your trading software as well as market data are also free and features robust charting and analytical tools. You only pay a low $1 fee per contract side. With Nadex, you trade without worrying about hidden costs or commissions.

Wide Range of Markets from One Account

Nadex is the first CFTC-regulated exchange where users can conveniently trade binary options, touch bracket, and call spread contracts on a wide range of the world’s markets while at the same time choosing maximum risk and reward. From a single Nadex account, participants can trade contracts based on the underlying asset classes that include stock index features, forex, and commodity features with low opening balance.

Products Offered

Nadex has revolutionized the approach to trading for the active short-term and long-term traders with various exchange options. Basically, there are three ways to trade here: Binary Options, Touch Bracket Contracts, and Call Spreads.

Binary Options

At Nadex, trading in binary options is turned into a simple question—will this market be above this price at this specific time? If you believe the answer to this question is yes, buy, if not sell! No matter how experienced you are, these trading options allow traders all the excitement they can handle along with the control they can manage.

If you predict the market right, you get the full value of $100 [minus costs paid, of course]. But if you are wrong, you get zero. The best thing about Nadex Binary Options is that you can never lose more than you paid for. What’s more, these options allow you to exit the trade at any time before expiration, which means locking in profits or cutting your losses.

Touch Bracket Contracts

A Nadex Touch Bracket contract features a floor and ceiling ‘knockout’ points. This allows traders to maximize effective leverage while providing natural profit targets. Simply put, when you trade here, you’ll know what you thrive on and live for moving markets. This revolutionary type of asset offers traders specific benefits. Firstly, the price range is capped at both the top and bottom, and the value of the contract moves linearly as the target market moves.

If you think the market will move up, you buy, if not you sell. These high and low limits work at your advantage because it becomes easy to manage risk. It provides you with an automatic approach to take profits or cut losses when a floor or ceiling is touched. Secondly, the defined floor and ceiling on each contract allows traders to identify clear profit margins and determine risk/reward boundaries.

Thirdly, with effective leverage, there are no calls for additional margin or risk of slippage through floor or ceiling. It allows you control to pick the Touch Bracket in a forex or stock indices market that provides the right level of risk for you. Unlike Nadex Call Spreads that expires at the pre-determined time, Touch Brackets expire immediately after the floor or ceiling is touched.

Call Spreads

Nadex Call Spread is quite unique to the previous two products as it allows traders floor-to-ceiling trading ranges that offer defined risk/reward without needing to stop. This provides a unique platform that allows time for the market to prove you right. The optionality afforded to you in these types of contracts gives you the ability to utilize a premium on time to protect your position. Without a stop, there’s no potential for slippage. By purchasing a small premium, you effectually define the maximum risk you are willing to take on a position.

The benefit of choosing Nadex Call Spreads is that they allow you to trade between two price levels. This permits you to trade your preferred strategy with total risk protection and natural profit targets. The built-in floor and ceiling in such a contract provides you with similar loss-protection to stop-loss, but without stopping. If the market is against you, you can never get stopped out or lose more than the maximum allowed by the floor or ceiling.

Markets to Trade

With Nadex, the US and international traders can legally trade a broad range of world’s market from one account using limited-risk binary options and spreads. There exist virtually limitless opportunities here, but your risk is always limited.

Stock Indices

You can trade in the US and global stock market indices without index futures or ETFs, all with lower fees than what is offered in the industry. The stock indices featured here include:

  • US Tech 100
  • US 500
  • Wall Street 30
  • China 50
  • US SmallCap 2000
  • FTSE 100
  • Japan 225
  • Germany 30

Forex

Nadex offers 10 of the most traded spot forex pairs as limited-risk binary options and spreads. These are traded 23 hours a day and six days a week. These include:

Commodities

Binary options and call spreads allow traders to trade commodities with a lower cost of entry and limited risk. Nadex offers binaries on energies, metals, and agricultural products as follows:

  • Energy—natural gas and crude oil
  • Metal—copper, silver, and gold
  • Agriculture—soybeans and corn

Contract Duration

Trading duration on Nadex entails both what other exchanges refer to as trading hours or trading session. This is typically the time between the opening and closing bells, not forgetting the after-hour trading. This exchange supports both 5 minute and 20-minute binary options, as well as daily and weekly trading hours.

Depositing Funds

Nadex welcomes its new players by requiring a minimum deposit of $250 as the initial deposit. US residents can make their deposits via Debit Card, ACH (Bank Transfer), Wire Transfer (Telegraphic Transfer), and Paper Check. Non-residents can make deposits via International Bank Transfer (Wire), and Debit Card.

Withdrawing Funds

Nadex offers two forms of withdrawal options for its traders; ACH and Wire transfer. US residents can use both, but non-residents can only use wire. All withdrawals can be completed promptly via the online form found on the site, with a processing fee of $25.

Account Types

Opening an account with Nadex is a hassle-free affair that’s free and easy to do. Nadex provides a level playing field for individuals, trusts, and corporate entities to trade binary options and spreads. As such, there are four different types of accounts that can be created here:

  • Individual account, for US residents
  • Individual account international, for eligible countries
  • Business account, for corporations, partnerships, LLCs, and trusts
  • Permanent demo accounts, which gives $25000 in virtual funds to learn the platform

Final Thoughts

Having explored the various nuts and bolts of Nadex, it’s quite straightforward to see why it is regarded as one of the best in the US, if not outright best. As a regulated exchange, this is a top avenue for people looking to trade in binary options in a reliable and transparent way. It allows traders to pay a fixed fee at which the loss is capped, and successful trades guarantee you maximum profits.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading: Brokers Reviews
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: