Nadex Review

Broker ReviewsNadex Review

Nadex Review

Nadex is a trustworthy US based exchange with excellent choice of services

Due to regulatory reasons Nadex does not provide any bonuses or promotions for depositors, but you can use their demo as much as you like, this scores a low 50/100. Their proprietary software is excellent and it earned 90 points. Customer support is a bit below average as no live support is offered and the number of assets is a bit below market average, so scores 75/100.

  • » Bonuses: 50/100
  • » Software: 90/100
  • » Customer Support: 80/100
  • » Options Choice: 75/100
  • » Overall: 80/100

 

Generally speaking, you will not have any difficulty to find a binary options broker. There are plenty of them. However, it won’t be that easy to find a reliable and regulated one, particularly in the USA, where financial regulators frown upon most binary brokers. Fortunately, there are exceptions and there are a few approved ones, who carry out their services with the highest level of competence and transparency and we believe Nadex is one of them.

 

Company information

Nadex or North American Derivatives Exchange is a company that offers the trading of binary options and spreads. It is owned by IG Group, which is a well known company in financial markets around the world. Nadex was founded in Chicago 2004, where it has its headquarters.

It is currently regulated by CFTC (Commodities and Futures Trading Commission). According to our research it is among two other binary options companies that are regulated. By its nature, it is not a true broker, but an exchange. It means that they do not have counterparty positions in their customers’ trades, but all transactions take place between buyers and sellers. That increases transparency and eliminates any conflict of interest as the company does not take positions against their customers.

Clients’ funds are held in segregated accounts separated from company’s funds.  This makes Nadex one of the most reliable binary options regulators around the world. With a few exceptions they accept clients from other countries too, not only from US.

 

TRADE AT NADEX

 

Assets available

Nadex does not seem to offer a lot of assets to trade, but they do have four different categories you can choose from with a total of 28 instruments to trade. The four categories are:

 

Stock indices: (in US) Wall Street 30, US 500, US Tech 100, US SmallCap 2000 and around the World: China 50, FTSE 100, Germany 30, Japan 225.

Forex: AUD/JPY, AUD/JPY, EUR/GBP/, EUR/JPY, EUR/USD, GBP//JPY, GBP/USD, USD/CAD, USD/CHF, USD/JPY.

Commodities: Gold, Silver, Copper, Crude Oil, Natural Gas, Corn, Soybeans.

Economic Events: FED Funds Rate, Weekly Jobless Claims, Nonfarm Payroll.

 

Despite the fact that most binary brokers do offer more assets to trade, you do get the most popular assets with Nadex and you can be sure the broker will not be taking trades against you. The Economic Events instruments are also something new. You can bet on the outcome of the above mentioned events and get rewarded, without concerning yourself with what the market sentiment is, or what financial journalists are predicting. Be your own expert!

 

Bonuses & VIP programs

We did not find any bonuses or special VIP programs offered by Nadex. This in effect means that the company treats all of their customers the same way, whether you are a private US or international citizen, a trust or corporate entity you will get the same trading platform, the same exchange and the same quotes. No VIP status, probably for the best. However, you can open a free demo account after simply filling in your name, surname and email address and $25000 virtual money is yours to trade as long as you want. This is much better than most binary brokers offer and the fact that they do not divide traders into classes of special and ordinary is a good sign of business ethics.

 

Fees, payouts and Trading features

 

As has been stated Nadex does not take trades against their customers, but matches trades of those who buy to those who sell. It therefore, is compensated by a fixed trade fee of $1 per minimum contract to a maximum of $50. As the revenue comes directly from transaction fees the broker wants every trader trading with them to be successful and make money.

 

Another thing about the specialty of trading with Nadex is that you can sell your winning or losing options before expiry with small profit or loss. So, if you want to lock in your profits earlier, you are free to do so. The same is true if you want to cut your losses short. You can do that. In reality, your maximum loss will never be higher than your initial investment, but your maximum payout, depending on market conditions, can increase up to 100%. A more realistic amount is around 60-80%. One good thing that when you have an out of the money option, you can expect a refund of up to 30%, which is again nothing like we have ever heard of with other binary options brokers. The minimum opening balance with the Exchange is $250.

 

Trading Platforms

 

Nadex uses an innovative proprietary trading platform, which is free to use and provides traders with real time streaming prices and data. On this web based platform you are offered unique Market Orders with Protection (MOP). You can open a trade at a market price, but it also ensures that you get the best possible fill price. When you open a demo account you can try their entire platform trading features for free before opening any trades. The platform is user friendly, beautifully designed and quite clear for implementation of trades. You won’t find too many features on it, which means it won’t be too complicated to use. With a simple click and drag you can modify your orders. You will also find real streaming charts with volume contracts available.  You can do analysis, opening and modifying trades all on the same window. Excellent!

 

TRADE AT NADEX

 

Mobile

 

With Nadex trading software you can trade wherever you are using company’s iPhone, iPad or Android applications. On your iPhone you can filter strike prices so that you could find the best trades for you. Charts have a portrait mode that helps you to see multiple strike prices. Alternatively, if you want to see price history, you can use landscape mode together with technical indicators of your choice. If you want to practice with the iPhone app for free, you can download it from the Apple AppStore.

A Demo version is available there too. If you choose to trade from your iPad, Nadex software will enable you to use one tap order placement straight from your chart. You can also do filtering by strike price or by binary price. It is possible to customize your charts according to settings of your choice. Your screen can be expanded and you can see your open trades, balance and many more. Nadex Android app can be used for smaller phones and 6 inch phablets and tablets. Whatever you can do on their iPhone app, you can also successfully implement on your smart phone and if you want to familiarize yourself more with trading features on your mobile device, a demo version of the platform is also available.

 

Deposits and withdrawals

Whether you are a US or international trader Nadex has a number of fast and convenient ways to deposit funds on your account and also withdraw them. You will have to use your checking account to make deposits, which will be faster and help you to avoid extra fees.

The ways for depositing (US clients) are: Debit card, ACH (Bank transfer), Wire transfer (Telegraphic transfer), Paper check. And you can make a withdrawal by ACH Withdrawal, Wire Transfer (Telegraphic Transfer) and debit card. The ways for depositing (Non US citizens) are: Debit card, International Bank Transfer (Wire) and ways to withdraw: International Bank transfer (Wire), Debit card.

As you may see they do not have too many options. Credit cards and e-wallets, which are accepted by most brokers, are not accepted by them. That is a small disadvantage, but you can still use one of their offered ways to deposit or withdraw.

 

Customer support

The company has an excellent support team that is available 24/7 to answer your questions and solve your problems. You can contact them via email, fill a web form with your problem or call Toll free in US. They also have an international number if you need to make a call. They have a lot of FAQ where you might find an answer to your problem, so be sure to look through them. Unfortunately, the company does not offer a live chat, which is a disadvantage as most binary options brokers have it almost 24/7 for their customers and potential clients. Well, let’s hope they improve on that as they have been doing with their other services.

 

Extra features and resources

 

Nadex has one of the best learning centers of all the binary options brokers. You can conduct all of your learning right on their website under the ‘Learning Center’ section. They have a set of educational courses that will introduce you to Nadex, Binary Options, Trading strategies and Nadex Spreads. They also have a huge amount of Resources in the form of Trading examples, Webinars, Trading Videos and Handbooks. There is also a Market News page where you can get updates on what is happening in financial markets or read economic or financial news that might affect exchange rates of the instruments you trade. Finally, you have a glossary for novice traders who may familiarize themselves with some market clichés and terms.

 

TRADE AT NADEX

 

Verdict

Nadex is one of the best binary options Exchanges that is regulated and who cares about their customers, follows best transparency practices and is clear about risks, fees and other important issues for their traders.

 

Pros:

  • » US regulated Exchange
  • » Accepts US and international customers
  • » Excellent proprietary trading platform
  • » Fee demo account with no expiry
  • » Limited risks on trades and good payouts
  • » Effective and nice support team
  • » Amazing educational base

 

Cons:

  • » Too few trading assets
  • » No live chat
  • » No bonuses

 

FAQ

 

Is Nadex regulated?

Nadex falls under the regulatory oversight of the Commodity Futures Trading Commission (CFTC). Their goal is to protect investors from cases of fraud, price manipulation and ilicit practices.

 

Can I try the Nadex platform before opening an account?

Yes there is a free demo account with $25,000 of funds for you to practice with. You will have full access to all features of the platform.

 

Where are my funds held?

As a regulated exchange funds are kept in segregated accounts from the clients ones. They use Tier 1 banks such as BMO Harris Bank and Fifth Third Bank.

 

How much do I need to fund my account to trade on Nadex?

You can start trading with a minimum of just $250.

 

TRADE AT NADEX

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