Nadex review 2023: should you sign up?

The North American Derivatives Exchange refers to it as NADEX. It has been in service for more than a decade. NADEX is a binary options broker that serves US and EU traders. It was formally registered in the state of Illinois and is subject to US laws.

The CFTC (Commodity Futures Trading Commission) is the broker’s regulator. NADEX is best for active traders interested in day trading. That was the main appeal for me too, as I have always been a fan of day trading.

Short-term options are the main focus of this trading platform. They charge low fees with small deposits.

NADEX homepage

NADEX doesn’t charge anything to set up an account. It has a very straightforward fee and commission structure. NADEX acts as an exchange and not a broker.

It connects contract buyers and sellers rather than brokerage. Getting the most acceptable trading parameters is in the client’s and firm’s best interest.

Trading on NADEX is appropriate for experts, newbies, and scalpers. NADEX allows traders from the US, UK, and Europe. NADEX trades in a wide range of global marketplaces legally and with only one account. I tried NADEX from the UK.

Unlike traditional brokers, NADEX gives the extra benefit of never having a margin call. Let’s take a glance at NADEX’s three trading instruments.

Binary Options

Binaryoptions are contracts with just two possible outcomes: “Yes or No.” Let me demonstrate with an example. Will the price of crude oil, for example, fall to $38 per barrel by August 2022? When held to expiry, the binary options contract can either expire

• OTM (out-of-the-money) with no return or;
• ITM (in-the-money) with a return of $100 per share.

The dual result is what gives binary options their name.

Knockouts

A knockout, also known as touch brackets. It allows traders to establish a weekly ceiling and floor on their trade. The ceiling and floor serve as a kind of stop-loss or take-profit order. You can keep the knockouts until expiry.

Call Spreads

Call spreads, like knockouts, require you to select a ceiling and floor as initial trading parameters, but there is no risk of getting knocked out of a call spread trade. If you wish you can take gains or reduce losses.

You can continue the transaction for more than one week or sell out early. But hey! Do you know what you can trade on NADEX? Forex, commodities, and indices are available to traders. Users of NADEX can trade 11 different currency pairs, including”

Forex

• EUR/USD
• USD/JPY
• USD/CHF
• AUD/USD
• GBP/USD
• EUR/GBP
• USD/CAD
• GBP/JPY
• AUD/JPY
• EUR/JPY
• USD/MXN

NADEX provides the following stock indices. NADEX may release cryptocurrency binary options in the future.

Indices

• Wall Street 30
• US 500
• US Tech 100
• US SmallCap 2000
• China 50
• FTSE 100
• Germany 30, as well as
• Japan 225

NADEX traders have access to commodity markets such as

Commodities

•  Crude Oil
• Natural Gas
• Precious Metals such as
• Gold and Silver
• Maize

The platforms allow you to take short-term positions. It also allows you to speculate on the minor price swings in various marketplaces. The platform allows for precise pricing and order placement. Let me tell you about the NADEX trading platforms.

WEB PLATFORM

The most impressive thing about the web platform is its full-featured charts, technical indicators, and drawing tools. NADEX desktop platform enables us to

• Track
• Manage
• Analyze markets

I also got free access to market data and unique ladder charts. It made my trading from charts simple.

NADEX platform

NADEXGo (mobile platform)

I tried the mobile app and it was a smooth experience overall. It synced with the desktop version and allowed me to keep up-to-date. Just like the desktop one, it provides real-time access to the market. While using the mobile platform, I felt like I was using a pocket-sized web version of it.

NADEX mobile platform

WHAT TRADING INDICATORS ARE AVAILABLE?

Indicators always help me to understand the market condition. They indicate to the traders what will happen next. So clearly, indicators are an essential thing to learn for trading. Do you know what indicators NADEX offers? Don’t fret! Here’s a list of some of them.

• Moving averages
• Average true range (ATR)
• Moving average convergence/divergence (MACD)
• Relative strength index (RSI) and many more.

There are two standard individual accounts

• One for US citizens
• Another one for international clients.

The best thing I liked about NADEX is its ability to provide international clients with the same level of safety and security as they do for US clients. I opened my account from the UK and it worked like a charm. International traders can confidently use NADEX’s products and services, knowing their funds are safe.

Business accounts offers a variety of investment options for corporations and trusts and organizations headquartered in the United States. Let’s see the comparison of the account types:

I hope this will help you decide which account is better for you. Oh! Let me tell you another amazing thing about NADEX. Read the section mentioned below to be amazed.

DOES NADEX OFFER A DEMO ACCOUNT?

NADEX provides a $10,000 demo account. Now I am going to tell you a secret! NADEX’s demo account sign-up process is entirely digital and hassle-free.

It is a free account for 30 days. Following are the benefits I got when I tried their demo account.

• Chance to practice trading for free
• Market preparation
• Testing their mobile trading software
• Testing trading methods
• Specified risk management
• Became a better trader

I advise you to open a demo account first, then move on to the live account. I like to warn new traders against presuming that a demo account properly reflects the market psychology. It might lead to unreasonable trading expectations. The demo account offers both

• Browser-based trading interface
• Mobile app NADEXGo.

Told you! It’s a fantastic thing.

NADEX demo account

The Commodity Futures Trading Commission regulates NADEX. In particular, NADEX adheres to:

• Excellent risk management trading methods
• Rigorous client money protection

This way, all your assets are held in segregated accounts in US institutions.

NADEX has members from dozens of countries. It is a retail-focused exchange. It provides streamlined derivatives contracts on international marketplaces.

But you’ll be surprised to know about this firm’s employees. NADEX is a minor financial firm with approximately 50 people. It is in Chicago, Illinois.

NADEX location

NADEX was formerly known as “Hedge Street” in 2004 but that shut down in 2007. In 2009 U.K. based I.G. Holdings Plc. purchased Hedge Street. They renamed the company North American Derivatives Exchange aka NADEX.

Deposits and withdrawals are free through the automated clearing house (ACH), but let me tell you the ways you can deposit and withdraw.

Methods of NADEX deposit

• Debit Cards (available for the US and foreign clients)
• Wire Transfer (available to both domestic and international clients)

Methods of withdrawal from NADEX

• Credit Cards (available for the US and international clients)
• Wire Transfer (available for the US and international clients)

Their customer service is ready to answer all of your questions 24/5. Yeah! Unfortunately, their customer support service doesn’t work on weekends. There are two ways to contact them

• Online Chat
• Email

As I told you earlier, NADEX customer support service is reliable. It provides high-level support to its traders and clients.

NADEX contact page

While trading, I got the benefit of free trading days and other promotions occasionally. NADEX does not offer promo codes very often. This disappointed me.

When I deposited $1000 as their initial trading amount. I got a $100 sign-up bonus at that time. NADEX does provide all new traders a sign-up bonus. You can get another bonus from NADEX by referring a friend.

The refer-a-friend program pays $100 for each eligible recommendation, up to a maximum of ten per client. I always recommend that everyone reads the terms and restrictions carefully. Traders should be aware of them before participating.

NADEX also periodically holds a free demo trading contest with real cash rewards, but unfortunately! This demo trading contest is only open to US residents.

Traders don’t have to be concerned about hidden costs. Too often hidden taxes on profits can deplete traders’ end-of-day money. To create or close a position at NADEX, I had to pay $1 for each contract. For contracts that have expired out of the money, NADEX does not levy a fee.

When I started, I tried the NADEX demo account. It helped me feel more confident that I would make money once I started using a live account. I liked the trading platform and overall trading conditions were good too. However, I was confused at first. I couldn’t determine if I had made or lost money.

The NADEX customer care representative who answered the phone — I forgot his name — indicated that I could see such information under Account / Reporting History / History. Voila! As a result, I now have a trading platform that I am glad to use and recommend to others.

Also, I remembered I once faced another issue on the platform. In this scenario my orders were not getting executed on the web platform. So, I contacted the support team, and they said they are having some kinda glitch. The glitch was fixed in less than 24 hours and that was the only time I had trouble trading on the NADEX platform.

Is NADEX a good broker?

NADEX is a good platform for short-term traders who wish to trade binary options and spreads on a fully regulated exchange situated in the United States.

Is NADEX available in Canada?

NADEX closed its trading operations in Canada in 2015. This happened because of the ban on binary options by the Financial Consumer Agency of Canada (FCAC).

How to trade 5-minute binary options on NADEX? 

5-minute binary options operate within that time frame. It’s basically a form of short-term strategy which is popular among NADEX users. To participate you have to choose the 5-minute timeframe on the NADEX platform, enter your trade size, and place an order.

Can I trade Crypto on Nadex?

NADEX partnered with Gemini crypto exchange to provide crypto binary options to the traders. However, for now, it is only available on the demo platform.

Can strangle and straddle option strategies be traded on Nadex?

Yes, it is possible to trade strangles profitably on Nadex binary options. Straddles don’t work as well.

FINAL THOUGHTS

I’ve given you the complete review of NADEX. NADEX is a highly promising and competitive broker. It is a US broker with a reputable history. Always remember to use a registered and trustworthy broker.

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