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Nadex Review - is it scam or safe?

Nadex Review - is nadex.com scam or good binary options exchange?

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Basic Information

 

Minimum deposit  Min. bet size Payout % Bonuses Trading platform Regulation
$250 $1 Up to 100% No Nadex Trader CFTC

 

Nadex, one of the two major binary options exchanges operating in the US (together with Cantor) offers trading in wide range of stock indices, forex, commodities and economic events. Its trading conditions are really good, with limited risk and predefined maximum possible loss and besides, as opposed to the “traditional” binary options brokers, trading with NAdex 100% legal. Not to mention that an exchange makes its money by facilitating the trades, not when its clients lose, which is often the case with forex and binary options brokers.

 

Unlike most brokers offering OTC binary options, Nadex does not offer any bonus schemes. Instead, it really places a focus on education, taking it to a new level. There is a rich Learning Center on its website, where you can find free e-books, videos, trading examples, etc. Besides, Nadex regularly organizes free webinars on how to use its platform, and also, how to make consistent profit.

 

Trading Accounts

 

Nadex has two different account options, depending on whether its client is an individual or a business entity. Besides, it offers free permanent demo accounts either.

 

The Company. Security of Funds

 

Company

Country

Regulation

North American Derivatives Exchange, Inc.

US

CFTC

 

Nadex is the premier and largest CFTC-regulated derivatives exchange in the US, offering binary options and spreads to individual traders who seek low-cost, limited risk ways to trade the financial markets.

 

Launched in 2004 under the name “HedgeStreet”, Nadex was acquired by UK-based IG Group (LON: IGG) in 2007 and later renamed as the North American Derivatives Exchange. The group operates major forex and binary brokerage brand IG.

 

Despite the efforts of a number of financial regulators to ban or restrict over-the-counter binary options trading, it is available in many countries. This, however, is not the case with the US. Binary options trading in the USA is allowed only on regulated exchanges, so it is less risky and more transparent. Derivatives exchanges match buyers and sellers and do not take positions in any markets. They must be regulated by the US Commodity Futures Trading Commission (CFTC) and are required to keep clients’ funds in segregated accounts and to meet a number of other requirements.

 

For example, US-regulated derivatives exchanges are required to publish on their websites various transaction and position information, immediately after execution. All the required records must be available for inspection upon request by CFTC.

 

Trading Conditions

 

Minimum Initial Deposit

Nadex requires an initial deposit of $250 from its clients to start trading. Such initial investment is not high, as many OTC binary options brokers (some of which are unregulated) require similar or even higher amounts as a start. For example, CySEC-regulated StockPair requires $500 as a start.      

 

Min. bet size

The minimum bet size at Nadex is just $1, which allows for better risk management. Many brokers offering OTC binary options require more require more, for instance, with StockPair one can place a trade with no less than $20.

 

Payout amount

Instead of offering fixed payouts for the different instruments and expiry times, Nadex’s payout amount depends on the strike price that the trader was able to open the option at. As a the CFTC-regulated exchange, Nadex should offer its clients a choice of binaries with multiple strikes (not just current price) with various payouts depending on how close they are to price at expiration.

 

If you hold the binary option until expiration, this value is either 100, if the contract expires in the money (100% payout), or zero if it does not. You may also close a position before expiration, either to take profits or cut losses. In that case, the settlement value is the price at which you exit.

 

Trading fees

Trading with Nadex also involves some exchange fees per lot which are capped to a set maximum and are fully disclosed and transparent. Clients of the exchange are charged $1 per contract to open/close, with a maximum of $50 per order. However, if a binary option expires at zero, Nadex waives the closing $1 settlement fee.

 

Trading Platform

 

Nadex offers its clients a proprietary browser-based trading platform, called Nadex Trader (mobile apps are also available).

 

The assets available for trade are in the ‘Finder‘ window and after selecting a particular instrument, a market opens up the time frames on offer for expiry of the option. Clicking the asset in the market list (or the ‘Bid’ or ‘Offer’) will open the trading ticket screen. The maximum possible profit and loss are displayed on the order ticket and you have to enter that maximum risk amount in your account as collateral. So, you can never lose more than this amount on the trade, because you cannot initiate a trade without entering these values.

 

 

Nadex Trader gives you a real exchange trading experience, and real-time indicative market data is streaming directly from the exchange. The platform’s technical analysis and charting are among the best in the binary options sector.

 

Methods of Payment

 

Clients of Nadex have the following payment options: Debit Card ACH, (Bank Transfer), Wire Transfer (Telegraphic Transfer), and Paper Check.

 

Keep in mind that wire transfer withdrawals are charged with a $25 fee and that non-US customers are able to use only debit cards and international bank wire transfer.

 

Conclusion

 

Nadex, the US unit of IG Group, is the largest US-regulated binary options exchange. Meeting one of the strictest regulatory requirements worldwide, Nadex offers limited-risk trading in more than 10 000 instruments, forex and cryptocurrencies, commodities and stock indices on its professional web-based platform. To sum up the above:

 

Pros   Cons
A CFTC-regulated derivatives exchange No Signals service
Part of an international financial group (IG) No bonuses
Trading costs - Not high and transparent  
Trading with limited risk  
Professional trading platform  
Extensive product portfolio  

 

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Traders` reviews for Nadex

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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