Nadex Review 2020

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Nadex Review

Shanthi Rexaline
Contributor, Benzinga

1 Minute Review

NADEX, or the North American Derivative Exchange, offers retail trading of binary options, Touch Brackets™ and call spreads on commodities, forex and stock indices from a single account and single trading platform. The firm is owned by the U.K.-based IG Group, a FTSE 250 global financial services firm.

Best For

  • Binary options trading
  • Advanced trading and charting tools
  • Low fee structure
  • Easy-to-use interface
  • Availability of great educational resources to educate investors
  • Access to advanced technical analysis, tools and charts
  • Option to exit a trade before expiry to preserve profits on the “in-the-money” or cut losses when “out-of-the-money”
  • Free to deposit; only fees are for wire transfers for withdrawals
  • Limited choice of asset classes, with stock trading not allowed through the exchange

Who Uses Nadex?

For anyone on the lookout for trading binary options, very few regulated options are available, and Nadex is one of the few available for the following individuals:

  • Binary options traders
  • Beginners
  • Seasoned investors

Binary Options Traders

Those investors who look for a simple way of making money out of the price fluctuations may be taken for a ride by scammer exchanges/brokers in the name of offering a way to trade binary options. The risk element is minimized if one uses Nadex, given that it is a regulated exchange.

Beginners Use Nadex

The educational resources available with Nadex makes it appealing to beginners, who can gainfully use those to get fairly acquainted with binary options as well as Nadex and its trading platform.

Seasoned Investors Also Use Nadex

Seasoned investors will find an able ally in Nadex’s advanced trading tools and charting application, which could help predict the directional moves in the markets.

Nadex’s Commissions and Fees

An account can be opened for free online. Opening minimum balance is $250. The firm also offers market data and trading software, including advanced, charting and analysis tools free of cost. The fee charged is $1 per contract side irrespective of the number of contracts in the order, and for exit another dollar. However, if the binary option expires at zero, the $1 settlement fee is waived.

Nadex’s Platform and Tools

Nadex’s web-based platform runs on any PC with a modern browser and fast internet connection.

The firm’s proprietary mobile trading apps are designed for the unique features of touch screens and offer secure, flexible ways to trade on the go. You can trade on Windows, Mac, or Linux.

The firm also has a demo-trading platform, which is a full-featured virtual account to test drive the Nadex trading platform.

Nadex’s Research and Tools

The firm’s web page has a section dedicated to learning, called Learning Center. The segment has basic educational courses, delving into Nadex, Binary Options, Nadex’s Trading Strategies and Nadex Spreads.

Under the Resources heading, the firm offers webinars, videos, trade examples and e-books. Market-related news and analysis are provided under the head “Market News.” The firm also displays a glossary of terms related to trading.

Nadex’s Customer Support

Nadex clients can reach support anytime from 11 a.m. ET Sunday through 5 p.m. ET Friday. The toll-free meant number for U.S. clients is 1-877-776-2339, while international clients can contact Nadex using the number +1 312-884-0100.

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Customers can also e-mail Nadex at [email protected] .

Meanwhile, prospective U.S. customers looking to open an account can call a Nadex Accounts Specialist between 7 a.m. ET and 8 pm ET from Monday through Friday and 7 a.m. ET and 4:15 p.m. ET on Fridays using the toll-free number 1-866-296-0167. The corresponding number for prospective international customers is +1 312-884-0162.

Note: Customer service is available only in English at this point in time.

Nadex’s Ease of Use

On opening an account online, free of cost, you can fund your account using a debit card.

To open an account, you have to fill out an online application, which can be done in five minutes. You can fund your account and begin trading once the application is approved.

The account types allowed by the firm include:

  • Individual accounts for U.S. residents
  • Individual accounts for international clients (click on “eligible countries”)
  • Business accounts (trust, partnerships, LLCs, corporations)
  • Permanent demo accounts: The firm provides $25,000 in virtual funds to learn the platform and try out different trading strategies.

Nadex is not the buyer or seller but the facilitator of fair and transparent execution. It is regulated by the Commodity Futures Trading Commission or CFTC.

The firm ensures the safety of funds of members by holding these in segregated accounts in top U.S. banks.

In 2020, Nadex announced NadexGo™ – a Progressive Web App that works with your Nadex desktop platform, allowing you to make a trade on one device and monitor it on another. It features charts, drawing tools, and technical indicators.

Asset Classes/Tradable Securities from Nadex

Binary Options
  • Commodities – Gold, Silver, Crude Oil, Copper, Natural Gas, Corn, Soyabean
  • Stock indices – The Dow, the S&P 500, the Nasdaq-100, the Russell 2000, the FTSE China A50, the Nikkei, the FTSE-100, the DAX
  • New for 2020! Touch Brackets – A contract that allows traders to speculate on a price movement in a predefined range that moves with the underlying market. Learn more here.

Binary options, which are different from traditional options, are a get-all or nothing kind of trade, where you pay attention to the direction of the movement of the underlying asset (through call or put option, depending on whether you think the asset will increase or decline in value). You commit on the amount you are willing to risk (called the strike price) and the time frame involved. In the end, you’ll either get a fixed return or stand to lose the investment.

Nadex also allows buying and selling spread contracts, or what they call Call Spreads, which have an upper pricing level called ceiling and lower level called the floor, thereby limiting your risks within the range.

Within the floor-to-ceiling range, spreads move when the market moves up or down, and so does the value of the spread. You can exit your trade anytime up to expiration, to lock in profits or limit losses.

Final Thoughts on Nadex

Nadex, as a regulated exchange, is the best avenue for trading in binary options. Alternatively, successful trades fetch you full profits. The exchange also provides a demo account to help clients learn the ropes of the trade.

Nadex Review 2020

Nadex – Broker Review and Trader Feedback

Nadex or the North American Derivatives Exchange is an American binary options trading platform that was initially established in 2004. Then, it was known as HedgeStreet. Prior to the introduction of binary options trading, HedgeStreet specialized in offering derivative trading called “Hedgelets” for individual private investors to speculate or hedge against price movements or economic events. In 2007, HedgeStreet was taken over by the IG Group and restructured as NADEX. Today, Nadex specializes in offering binary options trading to U.S residents and international traders.

1. General Information

With their head office located at Suite 2675, 311 South Wacker Drive, Chicago, Illinois, Nadex is a subsidiary of IG Group Holdings Plc. The trading platform was formerly known as “HedgeStreet” until it was bought over by the IG Group for 6 million USD in 2007 and rebranded as the North American Derivatives Exchange (Nadex). As a financial services provider that is based in the U.S, Nadex is regulated by the Commodity Futures Trading Commission (CFTC). Unlike offshore based or European binary options brokers, Nadex does not act as market marker, by taking the other side of a trade. It acts purely as an intermediary facilitating binary options trades between traders.

2. Advantages and Disadvantages

Accept US and International Traders: Nadex is the only legally authorized binary options broker that is permit to accept U.S based traders.

User Friendly Trading Platform: The Nadex Trader is simple to use but also comes with numerous advanced trading tools.

Top Notch Customer Service: The customer support service at Nadex is unrivalled in the industry.

Comprehensive Educational Materials: There is an extensive library of educational materials on the Nadex learning center.

Fees charged on withdrawals: Withdrawals at Nadex are subjected to a fee of $25.00.

Limited Customer Support Service Hours: The customer support service is only reachable during the regular office hours in the U.S.

3. Trading Conditions

Nadex’s business model is based on fair exchange trading. However because Nadex operates with a different business model from the majority of the binary options brokers operating around the world, it is difficult to make a direct comparison between them. For example if a Nadex’s trader purchases an option contract with a price of $40 with the strike price at $100, his payout will be 120%. But if the trader purchases an option contract at $70 with the strike price at $100, then his payout will be about 43% only. The risks which the trader faces are more dynamic than European binaries. Nevertheless with the trading cost fixed at $0.09 per lot and capped at a maximum of $9.00, the returns are more lucrative than European binaries and offer better trade value.

4. Underlying Assets

Nadex do not have an asset list which is as extensive as European or offshore based binary options brokers. Nevertheless, Nadex’s traders do have the ability to trade in selected global market indices, 10 major currency pairs, 7 different types of commodities and “events” such as the announcement of unemployment figures and interest rate changes.

5. Trading Platform

Nadex has 2 main types of trading platform, the Nadex Trader platform and the Nadex Mobile Trader. The Nadex Trader being a web-based trading platform is easily accessible with any web browser. Through the Nadex Trader, traders are given direct market access (DMA) hence helping to ensure full transparency with regards to the pricing of the binary options contracts. The Nadex Trader also comes with an advanced charting package and a range of technical indicators. These trading tools no doubt help to enhance the analytical ability of Nadex’s traders. In addition, the platform can also be customized. Users of the Nadex Trader can change the way how they view the various functionalities and data that are displayed on the trading platform. The Nadex Trader also boasts of a high reliability rate. Uptime is 99.9% hence ensuring traders will not have their trading activities disrupted in any way.

Overall, the Nadex Trader is not as sophisticated as the trading platforms adopted by its offshore counterparts. But it does offer traders more control over their trades like the ability to close a trade early.

6. Mobile Trading

Apart from the desktop Nadex Trader, Nadex has also provided their clients with the Nadex Mobile Trader which is fully optimized for mobile devices such as smartphones or tablets. The apps are available for download at Google Play Store or Apple’s App Store and allow traders to track developments in the financial markets in real time, execute trades, create watch lists and to check their trading account balance.

7. Demo Account

Nadex also offer a free demo account which potential clients can try out to help them get a feel of how their trading platform works. The demo account comes preloaded with $25,000 virtual cash which can be utilized to carry out paper trades. Since, the demo account is an unlimited time demo account, registered traders can also use the demo platform to back test their trading strategies without risking their trading capital

8. Account Types

Apart for the demo account, Nadex has also provided its clients with a choice of 3 main types of trading accounts:

Individual Accounts for U.S Residents
Requirements: Permanent U.S Address, Date of Birth, Social, Security Number, Copies of documents showing all the required details.

Individual Accounts for International Traders
Requirements: Permanent Home Address, Date of Birth, National,Identification Number, Copies of documents showing name, address and date of birth.

U.S Business Account (For Trusts, Companies or Partnerships)
Requirements: Authorization to act on behalf of the corporate entity, Documentary proof of status and ownership of the corporate entity, ID of each signatory on the membership form, Nadex Entity Membership Agreement, Unanimous Consent Resolution, W-9 Form.

9. Opening an Account

Opening a trading account at Nadex is free and a simple process. To initiate the account opening process, simply click on the “Open An Account” button located at the top right hand corner of any of the web pages on the Nadex’s website. Fill in the online application form with all the necessary details. Once you have completed the form, simply submit the form. The whole process will take roughly 5 minutes and once you have opened an account, you are under no obligation to trade unless you are ready.

10. Funds Withdrawal

In terms of fund withdrawals, the options are limited to ACH transfer, debit card withdrawals or bank wire transfers for U.S resident traders. For international traders, they can only withdraw through their debit card or through bank wire transfer. Withdrawals will normally take 3 to 5 days to process and require a processing fee of $25. The withdrawal process at Nadex is more stringent that offshore based brokers due to the various regulatory requirements imposed by the CFTC. For more details, you are advised to contact customer support for clarification.

11. Trader Training

From our observation, we noted that Nadex is one of the few rare binary options brokers that are dedicated to providing their traders with quality trading education. There is a wide range of free educational resources such as handbooks and webinars which can be accessed by anyone. However, Nadex has also reserved some resources that are only accessible to those who have registered with Nadex. Apart from handbooks and webinars, other resources include:

• Detailed Glossary
• Informational Videos
• Trade Examples
• News and Market Commentary

There is a also an FAQ section provided that goes a long way towards answering some of the more commonly asked questions.

12. Should I Trade With Nadex?

Most binary traders are often confused about what Nadex has to offer them as a binary options broker. This is because Nadex is not your typical broker that you see on the internet every day. It is in fact an exchange where traders meet together to conduct their trading activities. Nadex does not participate in the trading activities itself but rather provides the platform for the buyers and sellers of binary options to conduct their transactions as well as to ensure that all the activities are in compliance with the SEC and CFTC regulations. What is important to note about Nadex is the fact there is no conflict of interest that most binary traders with offshore binary brokers face. Nadex has no interest if you win or lose. It simply makes money from the $0.90 from each lot that you trade. On the Nadex platform, you are trading against other traders with Nadex merely as the intermediary. In short, Nadex is a trading platform that is worth trading on.

Nadex Review 2020 (Podcast Episode 80)

January 13, 2020 by VP

This is a Nadex review from a professional Forex trader.

But I am NOT an options trader. However….

….most of the reviews you see online are not from options traders either.

What I do know, is I’ve been dismissive of options trading for 10 years, and now that I’ve seen what Nadex can do, maybe I should have been paying more attention.

Nadex wants No Nonsense Forex traders (I’ve come to find out, almost everyone does), so there will be links for bonuses near the bottom of this blog post.

My Initial Beef

Two of the many common concepts we rally against here at No Nonsense Forex are the idea of Price Levels and using ratios to determine when to exit a trade.

Options trading does not use ratios as much as certain points in time where you must exit your trade.

No bueno. Absolute deal-breaker. Money Management is everything, and I cannot have anything else telling me when or where to take off my trade. Nope. Forget it.

Plus, I’m over still trying to master my own FX trading system, metals, and everything else going on in my life, it would take a lot of motivation for me to refocus what I was doing, and because of this, the motivation was not there.

And on top of it all, binary options affiliate scammers spam the bajeezus out of my YouTube channel, making me even less excited.

But I was not correct in my assessment. At least not as it pertains to modern day options trading.

Not only is options trading a big beautiful world with a heavy focus on Money Management, it’s less restrictive than I thought.

Meet Your New Go-To

Dan Cook knows more about options trading than just about anyone you’ll ever come across, and is ready to take on the job of being the main educator for all No Nonsense Forex traders who want to join up with Nadex and start trading options.

Education with something like this is really key, in option trading there’s the educated and there’s the constantly frustrated.

Here is a video he did just for the blog. If you sign up for an account at the bottom of this blog post, there will be more education included (more on this later).

With the skills you’ve already learned here, this could very well be not only a nice transition, but the type of trading which has been made for you this entire time.

Only one way to find out.

Basic Specs

I won’t spend much time on this, but it’s only appropriate to know who you’re dealing with.

Nadex is governed by the CFTC, as they are an American company based out of Chicago, IL.

You can trade Forex, commodities and indices all in one place, which are the three markets we focus on most here.

The three types of options you can trade on Nadex are

  • Binary Options
  • Call Spreads
  • Touch Brackets

This is where I was completely uneducated. There’s a lot more to options trading than I knew about.

And the best part about it has always been from a Money Management perspective where you’re protected from bad losses every step of the way.

Other Benefits

Nadex is the largest retail options exchange, and there is safety in size. Lots of other benefits of trading options as well, and we’ll list them below…

These are provided from Dan:

  • Low cost of entry and low capital requirements to trade
  • No pattern day trader rule, trade as much as you like day in day out (not important in the FX world, but could be for any options traders in the equity space
  • Contracts are structured with 100% defined risk without the use of stops. So basically, never get stopped out again.
  • Defined risk contracts mean there is never a possibility of a margin call
  • Trading 23 hours per day from Sunday afternoon to Friday afternoon (again not important for FX traders, but equity, ETF or options traders could be big)

What You Get

It’s nothing over-the-top like a cash bonus, because the most tightly-regulated shops (which is exactly what we want) have a very hard time doing this.

IG US tried cash bonuses with us for a minute, but soon got rid of it.

For NNFX traders only, Dan Cook is doing 4 separate webinars. People who sign up soon after this blog post comes out will get the chance to attend them live, anyone who signs up after will get to see them recorded.

One will be a general overview of the platform so everyone can make an easy transition, then the other 3 will be going over his best trade set-ups.

Again, with US companies, it’s tough to give a lot away, but the information in the exclusive webinars can lead to really great things down the road.

Many of you can point to two or three NNFX videos which instantly changed everything in your trading.

What was that worth?

Some videos made instant impact, others inspired your creativity to go and find tools and strategies you would have never found otherwise.

All it takes is one. You’re getting three, on top of the intro webinar.

Also, you will get a dedicated Customer Service Rep assigned to you. Please do not bombard these poor people with questions you can find out yourself, but if there are any issues at all, you’ll have your own guy.

That’s big. It’s been shown in the past how enhanced CS is extremely important to NNFX traders. Because things happen, and important questions come up. Nobody wants to wait or deal with somebody who doesn’t understand their situation.

This only applies to those who hit the requirements and click the link below.

First off, make sure your country can trade with Nadex. The US can of course, but click the link I gave you above if you are outside of the US.

The minimum deposit for the above benefits is $250 USD.

Here is my affiliate link

I hope you love the experience. Almost everyone who has clicked my links in the past have so far.

If you have any questions about this at all, Nadex will be happy to answer them.

In the US: 1-866-296-0167

Outside the US: 1-312-884-0162

Trading on Nadex involves risk and may not be appropriate for all investors.

Best Binary Options Brokers 2020:
  • Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo

    Only For Experienced Traders!

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