For instance, there are those binary options that are fully regulated, trading on the NYSE and NADEX. There is also Binary Options Exchange. Where one is able to be a writer and a seller of binary options. Gambling or financial instrument? Let’s set one thing straight and define once and for all what is gambling.

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Commissions and Fees
Platforms
Investment Offerings
Trustworthiness
Support

3.8

Summary

Overview: The Chicago-based Nadex (North American Derivatives Exchange) is regulated by the CFTC and owned by an international financial group (IG).It is a Binary options exchange with a unique trading platform for retail forex trading (see our link on how Binary Options work). Nadex (North American Derivatives Exchange) is a US-based, retail-focused, CFTC regulated exchange that offers Binary Options, Call Spreads, and Knock-Outs, making it our top choice for US traders. Nadex is a registered trademark of IG Group, Ltd, a prominent international provider for CFD trading, Spread Betting, and Share Dealing.

With so many trading platforms out there it’s hard to know which to choose. Nadex.com is a unique trading platform with many features for binary options traders. Read our in-depth review to decide if Nadex is the trading tool for you.

Nadex is not your average run-of-the-mill binary options broker that offers wither a call or put option with various binary options products in between. Nadex binary trading is not a gambling alternative, as there are actual transactions taking place in the market that make it largely similar to FX or CFD trading.
Jul 12, 2020 Nadex (North American Derivatives Exchange) is a US-based, retail-focused, CFTC regulated exchange that offers Binary Options, Call Spreads, and Knock-Outs, making it our top choice for US traders. Nadex is a registered trademark of IG Group, Ltd, a prominent international provider for CFD trading, Spread Betting, and Share Dealing.

Review Contents

Nadex Platform Features and Tools

About Nadex

Nadex.com (North American Derivatives Exchange) is a regulated U.S. binary options trading exchange platform. It provides direct access trading to binary options, Touch Brackets™ and call spreads for currencies, commodities, and equity index futures. The U.S. Commodity Futures Trading Commission (CFTC) regulates the exchange which ensures the integrity of the marketplace and operations. They match buyers and sellers and do not take positions. This is important as there are a lot of questionable binary options brokers that operate like virtual online casinos with rigged decks (IE: trading against customer orders, delayed fills and withdrawal issues). Nadex provides both online and mobile platforms to make direct access trades without outside brokers. Nadex is owned and operated by IG Group (LON: IGG), a FTSE 250 financial firm.

The exchange is open 23 hours during the weekdays (Monday through Friday) from 6pm EST to 5pm EST the following day. On Friday, Nadex closes at 5pm EST and re-opens for trading at 6pm EST the following Sunday.

Nadex Commissions and Fees

Nadex charges a $1 fee per contract when opening a position and charges $1 per contract when closing a position.

There are no software fees and free demo account is available just for registering.

Nadex.com Funding

There is a $250 minimum deposit to open a live trading account. There are no account minimums or inactivity fees once a live trading account is open. Any additional funding has a minimum $100 amount which can be funded immediately with a U.S. debit card. ACH transfers may take three to five business days. Wire transfers are available for deposits and withdrawals.

Nadex Platform Features and Tools

The Nadex trading platform can be accessed through the web or through the mobile app available for Android and iOS. There is no stand-alone desktop download. One thing to keep in mind, you cannot have the live account platform running simultaneously on the web and on mobile together. If you open the platform on the mobile app, it will turn off the web access and vice-versa. This is common on most trading platforms for security reasons. If you need quotes or charts while away from desktop temporarily, you can access the demo-mode on the mobile without having the access cut to live account on your desktop.

Margin/Leverage

While Nadex allows for short-selling, there is no margin accounts or leverage available for trading. This is probably a good thing considering the risky nature of binary options.

Research Tools

Nadex doesn’t provide fundamental research tools on the platform, however, the technical analysis tools are centered around the charts. Nadex also provides access to educational materials like free webinars and courses.

Charts

The HTML5 charting is exceptionally well designed. The incremental time selection is the deepest I’ve ever see, starting at 1-tick and 1-second charts up to monthly, including less popular four-hour charts. One thing to note is to make sure to select the Nadex Settlement Index for standalone charts. The Binary Ladder charts come with order entry levels on the chart. Some users may find it useful to place trades directly on the chart, but personally I find it takes up precious screen space, especially on the mobile version.

News

There are no news feeds on the platform. If traders want access to streaming market news, they will have to sign up for a standalone platform like Benzinga Pro.

Watch Lists

There are many selections of pre-configured watch lists starting with All Master Spreads, Expiring Soon to Popular Binaries to Recently Trade. The Popular Binaries and Expiring Soon watch lists are my favorites since they tend to have the most activity which then helps to ensure more liquidity. Spreads can get exceptionally wide when liquidity thins out. Unfortunately, Nadex doesn’t provide a time and sales or volume statistics to give any clues on the liquidity. The only clues are when spreads get split by retail traders which can sometimes be spotted by odd-lot bid/asks.

Users can create and customize their own watch lists or use the pre-set watch lists like the most active stocks or benchmark index stocks like the S&P 500 or Nasdaq 100. Instruments can be linked to charts so simple click on any symbol in a watch list can quickly update the chart along with all your indicators and studies.

Order Entry

The order entry windows are designed like level 2 screens with bid size and price on the left and Offer price and size on the right, followed by additional layers of bids and offer below. Each order entry window displays the Max loss and Max win dollar amount, which is based on Order Limit price and Size (number of contracts). This helps traders to quantitatively define the risk and reward values on each trade. Market orders are available, but can be dangerous in volatile markets as spreads are wide to begin with.

Types of Contracts

Nadex is an exchange for binary options traders. If you want to trade stocks or other types of assets, you will need to use a different brokerage account.

There are three different types of options on Nadex:

Binary options contracts have a set expiration and strike price that it must close above by at least a fraction. The payout total is $100 minus whatever was paid for the option. For example, if a trader bought a 20-minute binary option for US 500 (equivalent to the S&P 500 e-mini) Sept > 2781.00 for $13.00, then the underlying US 500 indicator needs to close above 2781.00 to be considered in-the-money (ITM) at the time of expiration. If the US 500 closes at 2781.5, then the payout is $100, but the trader should subtract the cost of the opt

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