First a bit about the companyRegulated broker trust Nadex

Formerly known as HedgeStreet, NADEX (North American Derivatives Exchange) is one of the few legit binary option brokers offering their services to the US citizens. The company is owned by the London-based IG Group but is headquartered in Chicago, Illinois. NADEX is regulated by the US Commodity Futures Trading Commission (CFTC) and therefore permitted to offer their services to US citizens. The company started online operations in 2004. Since then, it has become one of the most recognized online financial instruments platform available to US citizens. Their service is also available to traders from other parts of the world.

NADEX Review: scam or legit binary options broker?

Being regulated by the CFTC is quite a big deal. Very few companies are issued with a CFTC license and permitted to offer financial trading services to US citizens. This makes NADEX one of the few options brokers we can confidently say are legit. Their parent company is also well known within the financial markets industry. From our research, we encountered very few valid complaints about this company. Even then, none of these linked NADEX to any scam.

NADEX review regulation
What makes NADEX stand out?

Besides being CFTC approved, NADEX offers a number of unique features to traders from across the globe. Their business model is quite unique. Rather than operate as most brokers (take position against traders), NADEX acts as an exchange. That is, their platform provides a meeting place where buyers and sellers meet. NADEX then earns $1 on each side of the trade. This means that NADEX doesn’t actually actively buy and sell financial instruments as many brokers do. NADEX also offers event binaries which are quite rare to find especially with overseas brokers. Their website is also easily accessible via Android and iOS smartphones. This makes it easy to sign into your account regardless of your location.

Nadex legit or scamNADEX downsides

The NADEX business model might be a bit difficult to grasp especially if you’re used to trading against the house. In addition, NADEX has a $50 price cap on trades that don’t expire in the money. This could significantly reduce your earnings per trade. However, there are conditions that apply to this cap as you’ll find out later.

Is it recommended to open an account with NADEX?

NADEX offers a host of unique features that makes it a good place to invest your money. If you want to know how to use the platform, you’re provided with a free demo account. The demo account includes all the features you’ll find in the real cash account and there’s no limit to how long you can use it. Their website is easy to use and navigate through. We also liked its easy accessibility especially through mobile devices.

Open a free NADEX demo account now and get $25,000 virtual trading cash!

Many traders lose money because they’re essentially placing trades against their broker. Some unethical brokers are known to manipulate financial instruments prices in order to reap profits from trading against traders. NADEX offers a unique exchange platform. They don’t trade against investors but rather bring buyers and sellers together for a small fee. This online binary options broker offers two trade types, bull spreads and binary options. You can also trade on events such as the Fed Funds Rate and Jobless Claims releases.

NADEX offers over 10 major currency pairs, over 5 different commodities and 3 events you can place trades on. This asset list isn’t as extensive as you’ll find in many brokers. However, they’re just enough to get you started trading in binary options.

This binary options exchange offers several expiry periods that range from 5 minutes to several days. How long you hold position largely depends on you. NADEX will charge $1 per contract. That is when you place a trade and when you close a trade. This limit applies for up to 50 contracts after which it becomes free. Trades that expire inside the money aren’t charged this fee. In addition, if you hold position until expiry but your trade falls out of the money, you won’t be charged a settlement fee (loss incurred).

 

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Minimum deposit

Opening a NADEX account requires you deposit $250. The deposit can only be made via checking account only. The options are traded based on the 0-100 model where if a trade ends in the money, that lot will be worth $100. If it ends outside the money, the lost is worth $0. Withdrawing your earnings is quite fast. You can choose to withdraw via wire transfer, ACH transfer or eCheck. Withdrawals are processed within 24 hours after they’re received and it could take up to a week for money to reflect in your account. When making your first withdrawal request, you’ll be required to submit copies of identification documents. This might be frustrating for some traders but it’s actually one way to combat money laundering.

NADEX offers a variety of learning resources traders can make use of. Besides reading material, the platform also offers regular webinars which not only help you understand how to use the platform, but how to make successful trades. Their support is also great. Traders can access the NADEX customer support team via email and phone.

One of the conditions CFTC and other regulators set is that any broker they license shouldn’t offer incentives to would be traders. This is the main reason why NADEX won’t offer bonuses or other cash incentives to new or existing traders. NADEX however offers you the opportunity to trade for several days without incurring a commission depending on your deposited amount. For example, if you deposit $1000, you’ll get to trade 4 days without having $1 cut for every contract.

Limiting losses on NADEX is also quite simple. The platform includes a unique feature called the Market Order with Protection (MOP) allowing you to set how much more you’re willing to pay outside the market price. If the price goes past the MOP the order is automatically cancelled.NADEX USA

Trader complaints

NADEX doesn’t claim to be a perfect trading platform. During our research, we did come across trader complaints. However, majority of these came from traders who have been locked out of the platform and those who didn’t fully understand how the platform works. The former group usually comes from countries where NADEX doesn’t operate and finding an alternative broker would be the only solution they might get. As for not understanding how the platform works, NADEX offers numerous learning resources.

User friendliness

The NADEX website is built upon the Proprietary platform. We didn’t expect much from it but were surprised by how easy the site was to navigate. The user interface is well laid out and sections are intuitively designed so you won’t get lost trying to navigate through your account. However, the design might need some tweaking.

Although primarily built for access through a browser, we liked the fact that NADEX is also accessible via mobile devices. Their demo account is also quite easy to work with. You can still access your demo account even after opening a real cash account.

The NADEX platform also comes with technical tools which you can use to get information regarding a particular financial instrument. All information displayed through the charts and signals is real time. This makes it easier to follow asset prices and determine the best positions to enter or exit trades.

The broker’s customer support team is always at hand to handle client issues. They can be reached via phone or email and are available from Sunday to Friday.

Another feature provided by NADEX that’s primarily meant to make a traders life easier is the huge collection of educational materials. Traders can access written and video content which is meant to help them learn how to use the platform as well as make profitable trades.

Number of tradable assets

NADEX doesn’t offer hundreds of different assets like you’ll find with many brokers. However, their assets list might be all you need to begin a career in futures trading. You can easily trade indices, commodities and currency pairs. We also liked the events trading option which enables you to diversify your trading account. However, we still hope that new assets will be added to the platform.

Trade expiries and effective returnsNADEX trading

Having control over when to exit a trade gives you more ability to increase profits and minimize losses. We like the fact that NADEX allows traders the opportunity to have this control. Trade expiries range between a few minutes of days. However, this doesn’t mean that you will have to wait until trade expiry to get out of position. If your trade is in a losing position, NADEX allows you to cancel it. The platform also includes the MOP feature which allows a trade to be automatically canceled if the price goes beyond a set limit.

The effective returns per trade are quite high. For example, binary options trades that end in the money can earn you up to 300%.

Commissions and fees

One thing that stands out about NADEX is their unique business models. Unlike most brokers who charge a percentage commission on trades made, NADEX only places $1 on each contract either way. That is, for every purchase and sale made on an underlying asset, NADEX takes $2. This fee however comes with certain conditions. For one, once you’ve placed 50 contracts, the next trades you place will not attract this deduction. NADEX also charges an additional $25 as account fees which cover transfers, account closing and account inactivity. It’s a fair among given many brokers will charge well over $100 for these services.

NADEX fees

Deposit, withdrawals and bonuses

Depositing money to your NADEX account is simple. All you need to start trading is deposit $250. However, deposits are only accepted if they come through a checking account. Withdrawals are also quite simple. This online binary options broker accepts several withdrawal methods that include wire transfer, ACH or eCheck. Withdrawal requests are processed within 24 hours. Depending on the payment method of your choice, it might take up to a week for you to receive your money.

NADEX withdawal fees

NADEX doesn’t offer any sign up bonuses as is common with many online brokers. This is due to one of CFTC requirements that prevent licensed brokers from offering cash incentives to attract clients. Traders are however offered an alternative way to keep as much of their earnings as possible through no fee trades, high effective returns and very low fees charged per trade.

NADEX  App

Nadex mobile trading app

The NADEX trading app is available for tablets.

Broker extras

The NADEX platform doesn’t offer many bells and whistles as you might find among competing brokers. However, the platform does include unique features that will ensure that traders can make as much profit on trades as possible. NADEX provides a free demo account that you can use to practice trading even after opening a real cash account.

Another extra we particularly like is that the broker doesn’t trade against you. As an exchange, they only offer the platform through which buyer and seller come together to trade. This means that you chances of making profit are higher since there’s no one manipulating prices in the background. Although their tradable assets list might need some additions, we also found the ability to trade on events a good additional feature.

NADEX stands out as one of the few transparent and innovative online brokers available today. Their business model moves away from traditional brokers who take positions against their clients. As an exchange, NADEX makes it easy for buyers and sellers meet and trade based on existing market forces. As a CFTC regulated broker, NADEX primarily targets clients from the US although citizens of other countries are welcome to open accounts with the company.

NADEX US

Opening an NADEX Account

Although NADEX doesn’t offer hundreds of tradable assets, investors will find those available to be just enough to drive their trading careers. Their website is simple and non-cluttered and easily accessible via mobile devices. Making a deposit and withdrawing earnings is also simple and straightforward. Trades that end in the money have the potential to generate effective returns of over 100% which is quite high. Overall, if you’re an investor looking for an exchange that’s fully regulated and offers the opportunity to make huge profits on trades, NADEX is worth considering.

Check also our other US broker review of ”Marketsworld ”

 Thank you for visiting.

 

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