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Nadex Review

Nadex Review

 

 

 

Overall Rating

4.4/5

Rated #475 of 
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

CFTC

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

11

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Nadex is not a broker but a company that works with several market makers and operations run according to United States Government regulations. It does not take any sort of position in the markets but works to match buyers and sellers.

Finding a reputable Nadex review local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.

Below is an in-depth review of Nadex to help you make an informed decision before opening your account or trading on their platform.

According to recent research, Nadex is an American forex broker company that is based in Chicago, Illinois.

Forex brokers are companies that provide traders with access to platforms that allow them to buy and sell foreign currencies.

Forex brokers are also known as retail forex brokers or currency trading brokers. Retail currency traders in turn use these brokers to gain access to the 24-hour currency market for speculation purposes.

Forex broker services are also provided for institutional clients and large companies such as investment banks.

Nadex is a CFTC regulated binary options exchange established in 2004. It is the largest exchange that is based in the United States which offers the option to trade in binary options along with spreads in a limited risk, low cost, and legal way.

The company is part of the IG Group which is one of the world’s largest holdings relating to brokerage and investment. Nadex is the North American Unit

Nadex provides a sophisticated, robust, and professional trading platform for binary options with the choice of only one account type.

Trading through Nadex is a great opportunity for traders who have had to trade through offshore entities, which is not highly recommended due to a lack of reliability and regulation.

 

Awards and Recognition

Unfortunately, there is no record of the Nadex website of any awards that it has won.

 

Nadex Accounts

A forex account is a trading account held by a trader with a company like Nadex that is primarily issued with the purpose of trading currencies.

Usually, the number and type of accounts that a trader can open with a broker company differ according to the country in which the brokerage operates, the country of residence of the trader, and the regulatory authorities under whose jurisdiction it operates.

 

 

Types of Accounts and its Features

Nadex offers traders the choice of one standard individual account. However, there is one specifically available to US residents while the other is for International clients. Beginners have the option of a demo account.

It also offers a business account for trusts, partnerships, LLC’s and corporations. There is no real difference between the accounts apart from the requirements to open an account.

 

Overall Rating

4.4/5

Rated #475 of 
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

CFTC

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

11

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Deposits and Withdrawals

Traders can deposit and withdraw funds through various payment methods.

US clients can use the following payment options to make deposits:

  • Debit Card
  • ACH or Bank Transfer
  • Wire Transfer
  • Paper Check

 

Withdrawals for US clients can be made using the following options:

  • ACH
  • Wire Transfer
  • Debit Card

 

International clients can use debit cards or international Bank Transfers to make deposits and withdraw funds.

Fees are waived by Nadex for withdrawals that are made by using Wire Transfer which is applicable to both US clients and international clients. The processing fees applicable are $ 25.

 

Cost and Fees, Commissions and Spreads

The cost of trading depends on different factors like commissions, spreads, and margins.

The spread of a currency pair is the difference between the bid and the asking rate. A pip represents the smallest increment that an exchange rate can move. One pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position, and the leverage applied to your trading account.

Commissions are the charges imposed by an investment broker on a trader for making trades on the trader’s behalf. The level of commissions will vary between different brokers and depends on the asset being traded and the type of service offered by the broker.

Execution-only brokers, that is a broker that does not involve in any personal investment advice and gives traders complete control over how they trade the markets, tend to have lower commissions.

Contract for differences (CFDs) trading, a popular form of derivative trading that enables traders to speculate on the rising or falling prices of fast-moving global financial markets, will incur commission on shares.

CFD trades on other markets have no commission but do wrap a spread around the market price of a certain instrument.

Nadex’s fees are simple and straightforward, and it might be a good idea to understand how the trading fees work before starting to trade. It uses binary options and spreads that have a limited risk when trading.

Nadex requires a $ 250 minimum opening balance. With deposits and withdrawals, there are transaction fees charged which include a $ 25 fee on wire withdrawals and a $ 25 should a deposit be returned.

When traders enter and exit a trade before it expires, there is a $ 1 trading fee per contract. Should the trade expire ‘in the money, there is a $ 1 settlement fee per contract, and should it expire ‘out of the money, there is no settlement fee.

With regards to call spreads and Touch Bracket™ contracts the fee applicable to entry and exit before expiration is $ 1 per contract whereas with trade expiration.

Should the per-contract settlement pay-out be greater than $ 0, there is a fee to be charged for the position and this then exceeds the total settlement pay-out required for that position, and there will be a reduction of the total settlement pay-out.

 

Leverage

The facility that enables a trader to get a much larger exposure to the market than the amount he or she deposited to open a trade, is called leverage. Such leveraged products magnify a trader’s potential profit – but of course, also increase the potential loss.

The amount of leverage is expressed as a ratio, for instance, 50:1, 100:1, or 500:1. Assuming that a trader has $1,000 in his or her trading account and is trading ticket sizes of 500,000 USD/JPY, that leverage will equate to 500:1.

As Nadex is a US-regulated company, it is obliged to only offer a maximum leverage of 1:40 for some instruments.

Nadex offers traders high ROI potential along with risk limits that can be decided by the traders themselves. Traders do not get a margin call as trading is not done by using margin.

Nadex uses this system on trades as they are already collateralized before the trade takes place. Nadex offers contracts that are small, to begin with, but traders can still trade other markets and know it will cost them less per contract.

For example, for $ 20, a trader can buy or even sell a Nadex binary. Should that binary expire, the trader still receives a pay-out of $ 100 which is more than 200% ROI.

Should there be traders who want to trade in higher volumes, they have the option to trade multiple contracts.

 

Bonuses

Forex brokers tend to lure new traders with offers of attractive deposit bonuses. This can be useful, but it is essential to discern what a proper bonus is.

Such a bonus is but a way to compensate traders for choosing a certain broker since once the account is opened, the trader will have the same expenses as any other.

The bonus is just a reward for the trader’s choice that gives some of these expenses back to the trader, once proving himself as an active trader.

Moreover, since 1 August 2018 The European Securities and Markets Authority (ESMA) has placed investor protection measures on the marketing, distribution, or sale of CFDs to retail clients.

These prevent brokers from directly or indirectly provide the retail client with a payment, monetary or excluded non-monetary benefit in relation to the marketing, distribution, or sale of a CFD, other than the realized profits on any CFD provided.

This means that a Deposit Bonus is not currently applicable for retail clients.

There is no indication on Nadex’s website that it offers bonuses to its clients.

 

Trading Platforms, Software, and its Features

The forex trading software provided by a broker company to its clients is called the platform and is used to carry out their trades.

A platform can be a multi-asset one, which means that it allows clients to not only trade forex but also other asset classes like CFDs on stocks, stock indices, precious metals, and cryptocurrencies.

The decision about which platform to choose will depend on what a client would like to trade, therefore it will be one of the criteria when choosing a broker too.

Nadex offers traders a choice between two trading platforms, namely Nadex Trader Platform and Nadex Mobile Platform.

Nadex Trader Platform

This free trading platform can be accessed by using an internet browser and traders are provided with direct access to the Nadex exchange along with other global markets.

It can be used anywhere by desktop computers and laptops that run either Windows, Mac, or Linux software.

The Nadex Trader Platform features:

  • Free real-time data along with charts
  • Depth of Market along with advanced orders
  • Orders can be placed directly to the exchange
  • Orders can be placed directly from charts
  • Free real-time indicative data, and many more

 

NadexGo Platform

NadexGo is a mobile trading platform and has the following features:

  • Charting and technical analysis features
  • Market access is not only real-time but also direct, and many more

 

Markets, Products, and Instruments

Most brokers offer all or some of the following kinds of market instruments for trading:

Forex:

Forex trading, also called currency or FX trading, involves the currency exchange market where individuals, companies, and financial institutions exchange currencies for one another at floating rates.

Commodities:

As with currency exchange markets, commodity markets offer different investment opportunities for traders. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of inflation or economic uncertainty.

Indices:

Equity or stock indices are actual stock market indexes that measure the value of a specific section of a stock market. They can represent a specific set of the largest companies of a nation or they can represent a specific stock market.

Precious metals:

The trading of gold and other precious metals involves hard commodities that are contract-based tradable goods.

Energy:

The high volatility of energy prices due to political and environmental factors, supply and demand, extreme weather conditions, and global economic growth is a typical feature of this product, making it another popular trading choice.

Nadex provides both US and international clients the opportunity to trade in a wide variety of global markets.

Although there are only a limited number of instruments that traders can use, the added benefit of traders never being stopped out or receiving a margin call is an added benefit that is not offered by traditional brokers.

Traders can trade-in:

  • Forex
  • Stock Indices
  • Commodities

 

 

Safety and Regulation

One of the first things a potential trader needs to establish is whether a broker like Nadex is safe to trade with. One of the surest benchmarks to measure the safety of a brokerage is to establish which regulating authorities are watchdogs over its actions.

Nadex is regulated by the CFTC in the United States in providing financial exchange services to traders. It also forms part of IG Holdings and this company is highly reputable and multiply regulated.

Trades are executed in a fair manner that also falls in compliance with US laws and Nadex also provides a trading environment that is not only fully collateralized but has an absence of leveraged risk, margin calls, and debt risk.

Clients’ funds are also kept in segregated accounts with reputable US banks.

 

Customer Support

Potential traders need to be assured that the broker company they chose can offer the necessary support and help whenever they may need it.

Nadex provides customers support to clients who are already members through telephone, email, or Live Chat.

Different contact details are available on the website for traders who are not yet members of Nadex.

Members can contact the office from 3:00 PM ET Sunday through 5:00 pm ET Friday.

 

Research

Potential traders should always do as much as possible research about speculative trading before commencing to do it.

Trading with confidence and success relies heavily on knowledge and understanding of the markets, therefore research options offered by brokers form an integral part of its features when choosing the right company to trade with.

Nadex does not provide any research tools to assist traders.

 

Education and Training

Before starting to trade, potential clients of Nadex should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

If Nadex’s website itself does not provide enough means, a trader should explore other informative websites and means to obtain that knowledge.

Nadex might not offer any research tools but offers various educational tools that range from educational courses to binary options resources which include trading courses and trading eBooks.

Provision is also made for free webinars, trading examples, and a very extensive video library. The website also contains a blog, glossary, and helpful FAQ section.

 

Conclusion

Nadex provides a competitive offering seeing that traders can trade binary options and spreads. It is strictly and fully regulated in the US by CFTC which provides the US and international clients with a sense of security.

The minimum required deposit is low when compared.

 

You might also like: Nadex Minimum Deposit

You might also like: Nadex Account Types

You might also like: Nadex Demo Account

You might also like: Nadex Fees and Spreads

You might also like: Nadex Sign up Bonus

 

Disclaimer

The trading of binary options through Nadex involves risks that may not be suitable for all traders. Traders need to be aware of the risks involved which include losing their cost to enter transactions, this includes losing fees.

Traders need to consider their objectives, level of risk exposure along with their willingness to be exposed to risks and should consult independent professionals for advice should they deem it necessary, according to research done.

 

Nadex at a Glance

Broker’s Name Nadex
Headquartered CITY, COUNTRY
Year Founded 2004
Regulating Authorities CFTC
US Clients Accepted Yes
Islamic Account (Swap Free) No
Demo Account Yes
Institutional Accounts Yes
Managed Accounts No
Maximum Leverage 40:1
Minimum Deposit $ 250
Deposit Options Debit Card, ACH or Bank Transfer, Wire Transfer, Paper Check
Withdrawal Options ACH, Wire Transfer, Debit Card
Platform Types Nadex Trader Platform, Nadex Mobile Platform
Platform Languages English
OS Compatibility PC, smartphones, web, tablets
Customer Support Languages English
Customer Service Hours 24/5

 

Overall Rating

4.4/5

Rated #475 of 
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

CFTC

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

11

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with Nadex?

You can trade with Nadex is the following:

  • Forex
  • Stock Indices
  • Commodities

 

Which platforms are supported by Nadex?

Nadex provides the following popular trading platforms:

  • Nadex Trader Platform
  • Nadex Mobile Platform

 

Does Nadex offer leverage?

Yes.

Nadex offers maximum leverage of 1:40 for some instruments.

 

What spreads can I expect with Nadex?

Nadex specializes in binary options and spreads trading, and its fees are calculated on a per-contract basis. The fee structure is straightforward at $ 1 US per contract, up to a $ 50 maximum cap.

 

Does Nadex charge commission?

No. Nadex does not charge commission.

 

Is Nadex regulated?

Yes, Nadex is regulated by the CFTC in the United States.

 

Is Nadex a recommended forex trading broker for experts and beginners?

Yes, Nadex offers a good trading environment for all types of traders, from beginners to advanced.

 

What is the overall rating out of 10 for Nadex?

8/10

 

Accounts

 

What is the difference between a demo and a live trading account?

A demo account is an account offered by some trading platforms, which is funded with virtual money. This allows a potential client to experiment with the trading platform and get familiar with its various features, before deciding to set up a real account.

These accounts are offered by various online trading platforms, including stock trading platforms, foreign exchange trading venues, and commodities exchanges.

Demo accounts are also widely used by more experienced traders who want to experiment with other asset classes. For instance, a trader might be experienced in stock trading but want to start investing in futures, commodities, or currencies.

Opening a demo account is a good option before opening a live account where you trade with real money in real-time.

 

Does Nadex offer a demo account?

Yes

 

Can I convert my demo account to a live trading account with Nadex?

Yes

 

Which live trading accounts does Nadex offer?

Nadex offers only one Individual Standard trading account.

 

What are the available deposit currencies for a live trading account?

There is no clear indication on the Nadex website what currencies can be used when opening a trading account.

 

Deposits and Withdrawals

 

What is the minimum deposit for Nadex?

$ 250

 

How do I make a deposit and withdrawal with Nadex?

Nadex offers the following popular deposit and withdrawal methods:

Deposits

  • Debit Card
  • ACH or Bank Transfer
  • Wire Transfer
  • Paper Check

 

Withdrawals for US clients can be made using the following options:

  • ACH
  • Wire Transfer
  • Debit Card

 

Does Nadex charge withdrawal fees?

Nadex does not charge any fees for an ACH withdrawal, however, Bank wire withdrawal will cost $ 25 for processing fees.

 

How long does it take to make a withdrawal?

It takes between 3 – 5 business days for funds to be returned to your account after all the paperwork has been done.

 

 

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

Table of Contents

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