| Rating: | Assets: | Minimum deposit: | Return: |
|---|---|---|---|
 (4 / 5) | Binary Options, Knock-outs, Call spreads | $ 0 | Up to 90%+ |
Binary options trading is based on yes or no. Traders must analyze if the price of an asset will be less or more than a certain price at a certain time.
You can gain huge profitability if you have correctly speculated the asset’s price movement. But for incorrect speculations, you will end up loading all the traded amounts.
You need to have a reliable trading broker on your side to enter the binary options market safely. But with so many different opinions, choosing a reliable broker is not easy. You can, however, trust Nadex.
This post will help you understand what Nadex is, whether it is safe, how to initiate the trade through this platform, and more.
What is Nadex?
Nadex, North American Derivatives Exchange, is a US-based exchange that provides advanced features and powerful trading tools to traders of all levels. It’s not exactly a brokerage but a CFTC-regulated exchange.
It was founded in 2004 and is specialized in short-term binary options and spreads. This Chicago-based financial exchange was acquired by a company called Crypto.com in March 2022.
Nadex focuses on binary options trading and Knock-outs™. Also, it focuses on the most popular traded commodities, stock index futures, and forex.
Can you trust Nadex?
Although fraudsters populate the binary market, Nadex is 100% legitimate. CFTC, i.e., Commodity Future Trading Commission, has designated it as a Designated Contract Market and Derivatives Clearing Organization.
The CFTC is a US government that wants to foster a transparent, financially sound, open, and competitive market. It is done to avoid systematic risk and protect the market from fraud and abusive practices related to trading.
The funds deposited with Nadex are kept in the segregated bank accounts at Fifth Third Bank and BMO. As far as privacy is concerned, Nadex meets and exceeds the privacy terms. That means your personal data is safe.
What’s better? Well, the website of Nadex also clearly explains this trading platform, pricing structure, products, and market. Traders can also check the FAQ section to find answers about accounts funding and withdrawal, trading, and other important things.
How to trade on Nadex?
The interesting thing about Nadex is that setting up on its platform is relatively straightforward. You simply need to head to the Finder window and choose a familiar asset. This way, you will enter a clean section of expiration time.
Your market window will update after you have selected the asset and expiry. After some time, the price levels will be available. Normally, there are 10 levels to choose from. The binary options range from 0 to 100. The latter reflects an outcome that did take place.
For trading, choose a specific trade size. In addition, you can see whether or not a position has been matched by altering the buy or sell. The best thing is that Nadex will never take the other as it’s a regulated exchange.
You can close your trade at any time. This way, you can easily realize your profits and losses. At last, if you allow the option to expire, your ticket’s figures highlight the outcomes.
You can view your trade in the Open positions window if matched. But if there’s a partial match, the option will automatically move to the Working Order screen. Furthermore, you will get a confirmation email.
Trading platform review:
The reason that traders like Nadex is that the platform is fairly user-friendly. Even beginners can trade through this platform without any issue. It also provides historical data, necessary tools, and symbols to predict the price action.
Nadex desktop experience
The Nadex desktop is fairly better as it relies on a proprietary single web desktop experience. Traders can run the platform on Mac or PC with a modern web browser and better internet connection.
Traders have the flexibility to check the platform with a demo account, which starts with a simulated $25,000 balance. Once you have gained enough experience, you can fund your trading account with a debit card, paper cash, ACH, or wire transfer.
It’s a basic but well-designed platform that allows trading or spreads and binary options. This platform has everything that is required for trading but nothing else. One can easily switch between charting intervals and chart types. Also, the charts are pretty customizable.
What’s more? Well, you will find a small section of technical indicators, which includes regular suspects like Average True Range, Moving Average, Bollinger Bands, Moving Average, Oscillators, and RSI. one can also find a wide range of drawing tools, including Elliott, Gann tool, and Fibonacci. You can open any easy-to-use order ticket which supports market orders and limits by clicking on any symbol.
Nadex mobile experience
Nadex offers a responsive mobile experience, but there is no traditional mobile app. NadexGO can be considered a progressible mobile app, but it is not available for download on any device.
This app can be directly accessed through the NadexGO URL. The experience of mobile trading is similar to that of the desktop. Trading through the mobile doesn’t require experience or adding anything to the platform.
Why is Nadex better than others?
Here’s why you must choose Nadex over others:
Wide variety of tradable markets
Nadex doesn’t offer typical securities like ETFs, forex, bonds, or stocks. But it lets you trade plenty of different markets through commodities, currencies, stock indices, and macroeconomic events.
Trustworthy counterparties
Many traders do not like to enter the binary options market as it is considered risky. It can result in different kinds of scammers and frauds. But the best thing is that CFTC regulates Nadex. That means the client can rest assured because their traded account is in the best interest of the exchange.
Better educational tools
The learning center of Nadex is loaded with different educational materials. The material helps trade derivatives that the larger public does not know about. In addition, you will get access to blog articles, webinars, tutorials, and a glossary that will help you understand the basics of individual trading strategies and market insights.
Minimal initial deposit
One can start trading by making a minimum initial deposit of $250. In addition, Nadex has made strides to ensure you can start trading through your funded account immediately.
The low initial deposit is better for beginners who are not willing to risk too much capital at the offset. Traders also get capped risk, which is a powerful aspect of risk protection. Your losses cannot exceed deposits as you can never risk more than what you have in the account.
Methods of payment
You need to fund your account after signing up with Nadex. It can be done in a number of ways, including debit card, wire transfer, ACH transfer (US residents only), and paper check (US residents only).
Note that Nadex does not accept credit cards. For certain transactions, traders are required to do bank verification. If traders use wire transfers, they must pay a small withdrawal fee, which costs around $25. The transaction is processed on the same business day. Whereas ACH transfer is free, processing takes up to five days.
You can choose a specific payment amount. Details on minimum withdrawal limits, proof, and other issues can be found on the FAQ page. Most payment methods are fairly industry standard, but some users have found issues related to PayPal.
Bonus:
When someone trades through Nadex, they are eligible for a deposit bonus of $100. To claim this bonus, customers must make a deposit of $1000 and place five trades within 30 days.
Any promotional funds get applied to the trader account in the first five days. It only happens if the eligibility requirements have been met by the last day of the previous month.
Nadex trading accounts:
One can easily open a Nadex account by selecting one of this platform’s two account types. The two accounts are a US individual account and an individual international account, which are available for residents of over 40 countries.
After you head online to the website, provide your date of birth, permanent residential address, and social security number or national identification number.
Remember that Nadex might want you to upload some supporting documents before starting the trade. While signing up, you will be given information on how to close your account.
Demo account
As a trader of Nadex, you have access to a free demo account where you can practice your trading skills. With your demo account login details, you can use the same platform and real-time data for your live trading account.
It’s advised to sign up for a demo account so you can avoid losing money without risking your capital. The demo account lets you practice scalping strategies, intraday strategies, and other strategies.
You must remember that there are certain differences between demo accounts and live trading. For instance, traders cannot understand the psychological pressure that comes with real trading through the demo account.
One can contact the customer care team if the demo account is not working properly. Traders also get access to the Learning Center for guidance on how to get the most out of trading platforms.
Spreads and commissions:
Trading brokers usually do not offer genuine exchange trading, but Nadex is different. As it’s an exchange, it lets traders submit their orders directly through the exchange. That’s why Nadex traders do not have to pay any broker commissions.
But Nadex charges a fixed fee of $1 per contract. For a worthless binary options expiry, Nadex also waives the settlement fee. Nadex solely earns from the settlement and trading fees. That means it does not trade against its registered traders.
As the trading costs are lower, it can offer more attractive earnings potential. The maximum losses and profits of the payouts are calculated through entry/exit times and contract type.
The losses through Nadex are limited to the amount of capital initially invested, but payouts can exceed 100%. The pricing and bid/ask spreads in individual markets are determined by participant buyers as Nadex is not known to participate in the trading.
Nadex can participate with multiple market marketers as its a CFTC-regulated exchange.
Nadex call spreads
The registered traders of Nadex get access to a unique product called call spreads on multiple markets, including commodities, forex, and stock index futures. Don’t get afraid because understanding these spreads is easy.
Using Nadex, one can trade the price of a market like EUR/USD. When the price of this currency exchange changes, the spread also fluctuates, but it remains within a predetermined upper and lowers limit.
If the value of this currency exchange exceeds any limits, the value will come to a standstill at whichever limit it is breaching. The spread stops at a maximum value at the upper limit. At the same time, it reaches a minimum at the lower limit. Regardless of how far the underlying market drops, you will not lose any more value.
Traders also get better control over the risk-reward ratio. Thus, you can decide your risk parameters via the call spread limits. You also have intraday and daily call spreads. You need a careful spread strategy and start trading through Nadex. You can also head to the website for a more detailed breakdown of binary spreads and forex.
Leverage
You also get an advantage in Nadex spreads in terms of leverage. There’s no margin involved in the Nadex spreads as these are fully collateralized. There are cases where the cost of the Nadex spread can be lower than trading the underlying market outright.
As the maximum risk is capped, leverage offers a certain degree of risk control. You must use the best Nadex trading strategies to ensure better risk management. The losses can also be limited by exiting early. Also, you can seize your profits before the spread expires.
Other trading fees
An interesting thing about Nadex is its fair pricing structure. Traders do not have to worry about hidden fees that might cut into their end-of-the-day capital. Not to mention, there is a $25 returned deposit fee.
If you use it carefully, Nadex can be a good exchange. It could mean you benefit from effective leverage and low trading fees where the risk levels are low. But your capital is always at risk as it is the nature of day trading.
Nadex might disappoint its users in terms of special offers and account promotions. It reflects a more professional and trustworthy brand. Traders can use occasional free trading days and other similar offers.
Additional features
Below are some advanced features that Nadex offers. Go through these additional features to understand the Nadex trading in a better way.
Advanced charting
You can use technical tools and sophisticated charts for developing a range of techniques like out-of-the-money trading strategies. You can also use the MACD indicator, candlestick charts, and Fibonacci retracements to build a binary options strategy with a favorable risk-reward ratio.
Nadex spreads
Nadex spreads have a maximum possible profit and loss. But they have a variable payout at expiration instead of an all-or-nothing outcome of binaries.
Market data
Traders get real-time indicative price data that matches the underlying market’s price. Also, Nadex does not charge any additional fee for data feeds.
News trading
Some traders focus on complex market patterns and trading journals to change their binary strangle. But some traders focus on market news. But the registered traders of Nadex can get access to the actionable video and commentary on important market events.
The important content is created exclusively by a group of trusted and experienced analysts from various backgrounds.
Education
Registered traders of Nadex get access to weekly webinars, e-books, trading courses, and more. One can aid their trading growth through Nadex’s Learning Center. Forex binary options videos and strategies are also available in the learning center.
Regulation
Choosing a regulated trading broker is extremely important because fraud has increased in the market. Traders can get themselves registered with Nadex as it is legitimate and regulated by the CFTC. This verification can be easily seen on the official website of Nadex.
Benefits of trading with Nadex
Trading with Nadex brings huge benefits for the traders:
- Traders can easily manage market orders and quotes on the Nadex system.
- User reviews of Nadex have revealed a high level of satisfaction with the extensive customer service on offer.
- Nadex has market makers who can increase the liquidity for large traders.
- The fee structure of Nadex is quite competitive and affordable.
- Traders can easily open a demo account with Nadex and understand how this platform works. Through the demo account, traders can gain valuable trading experience.
- From over 40 countries, traders can use Nadex. So, traders from the UK, US, Europe, Asia, and Australia can easily use this platform.
- Unlike other platforms, Nadex is regulated by US CFTC. This organization ensures that the trader’s capital is protected in numerous scenarios. In addition, Nadex also adheres to rules and regulations to protect customers.
- One can use the tutorials, user guides, webinars, PDFs, and other useful resources to improve their trading knowledge. It’s a great place for aspiring traders who do not want to risk their money. These useful resources can also help develop better trading strategies for short-term trading, 5-minute binaries, and more.
- Nadex has the power of leverage but with a capped downside.
Drawbacks
Below are some drawbacks of Nadex:
- Nadex does not offer a wide range of products like it does not offer one-touch monthly binaries.
- In terms of promotions and bonuses, Nadex does not have enough ratings.
- While Nadex is believed to be beginner-friendly, some users might find this platform a bit complicated.
- Compared to Nadex, some competitors offer more order types, increasing intraday traders’ choice.
Nadex trading hours
The trading hours of Nadex are similar to the asset you are trading. It includes regular and electronic trading hours. The platform operates from Sunday evening until the close of the market on Friday.
Each day, traders can enter the market for 23 hours a day with an hour off between 5 pm to 6 pm. In addition, if there is a holiday, Nadex will stop trading during that holiday period.
Contact and Customer support:
Nadex has quick and responsive customer service. If traders have any issues, they can contact customer support through email or live chat. All the customer care representatives of Nadex are reliable and knowledgeable.
If ever the website is down or you encounter any legal issues, the customer care team can help you. They can also help you understand why any certain order got canceled.
You can simply head to the home page and click on the Contact Us for help through telephone. Furthermore, one can opt for customer care support through email or phone between 15:00 ET on Sunday to 17:00 ET on Friday.
So, customer support will help you throughout your trading journey, whether you are a trained trader or a beginner. Remember that any customer service agents cannot advise on revenue and taxes.
Safety and security:
Trading account hacks have become a common thing. Thus, some traders have developed security concerns. But registered traders of Nadex can rest assured because their capital is relatively safe.
This platform offers segregated accounts at top-tier banks, which keeps all deposits secure. Also, this platform utilizes intelligent encryption technologies to keep the trading activities safe and personal.
Nadex review conclusion:
For any traders, Nadex is a sensible choice as it’s an easy-to-understand platform. Traders get to choose from numerous timeframes with several strong trading tools. There is also a demo account, learning center, and the prices are competitive.
But there are a few downsides that cannot be overlooked. Compared to Nadex, the come platform offers a better product list. In addition, Nadex does not provide any welcome bonus or promotions.
Overall, Nadex is a good choice for binary options traders who do not want to lose money. This regulated exchange is safe and reliable for every trader.
