Nadex or North American Derivatives Exchange based in America, is a CFTC certified binary options broker run by IG Group. IG Group is one of the leading providers of CFD, BO and Forex trading since 2004. The company offers up to 5,000 contracts for trading including a wide range of indices, commodities and currency pair that you won’t find anywhere else.
Based in Chicago, Nadex is easily distinguishable from other foreign-based brokers in binary trading. The difference between a broker and a trading exchange is that brokers set their odds within a cramped office whereas sellers and buyers deal in market-based prices when working in association with the exchange. Considering this point, be assured that you’ll get a fair, risk-free, transparent deal as compared to other traditional brokers.
Though exchanges impose transaction fee on trading, you can get a detailed list of available contracts, their strike prices, expiry time, specific pay off ratios, OTM (out of the money) option, risk/reward ratio and other details. The winning payoff is estimated as $/€/£100 and you can easily calculate individual rations by calculating the differences.
One thing that distinguishes Nadex from other brokers is that it offers Spreads. Another good thing is that risk parameters are preset before you execute your order.
Is Nadex a Scam?
We don’t think so, as they’re listed on the LSE (London Stock Exchange). The company has its headquarters in Chicago and are owned by IG Group. It’s a UK based derivatives trading company, which is a part of FTSE 250. Their Market Capitalization is £2.9 billion, as calculated on 31st May 2016.
The company is authorised by the CFTC (Commodity Future Trading Commission), which makes its operations legal in America. They have a valid geographical address: 311, South Wacker Drive, Suite 2675, Chicago, Illinois, Pin code 60606, as published on their website.
Their customer service representatives are easily reachable on customerservice@nadex.com, toll free (977 776 2339) and International helpline numbers (+1 312 884 0100), which pretty much certifies its authenticity.
Besides, their trader funds are safely put into Fifth Third Bank or BMO Harris Bank, which is why Nadex is the best binary options exchange for traders, especially those who’re Americans.
Trading Platform, Software and Available Options
Nadex is nothing like SpotOption—the primary trading platform provider in the binary options industry. It’s because it is not a broker and their trading software is specifically designed to meet the trader’s requirement. You should brush your skills on option contract before you proceed on with real-time trading.
The proprietary design beautifully displays all option contract with fixed rates and possible risks, before you execute your trades. The charts display real-time profit and loss and tips on managing options before they expire.
At Nadex, the:
- Minimum trade value is $/€/£1
- Minimum deposit is $$/€/£250
- Bonus is offered in terms of 10 free trading days
- But you don’t get any signals service
Quick Features:
- Advanced charting and tools for technical analysis
- Transparent trading costs
- Regular webinars (free of cost) for traders so they can generate profits consistently
- Real-time trading experience that allows traders to sell or buy assets by requesting their own strike price
- A Finder window on the left allows you access to asset type and their expiry. You can check their prices and choose your assets.
- Nadex has set 10 price levels for your assets—based on the closing price. The settlement price on its binary options is 0 to 100, where 100 denotes a positive outcome and 0 represents a negative outcome. As a trader, you can sell or buy both negative as well as positive outcome.
- All details related to your trading contract (such as price level, expiry time, current bid, bid size and offer prices) are available on the trading ticket that also highlights maximum payouts and maximum loss risk. On a positive note, traders can alter their trade prices.
- Traders can open or close their trades at any time—thus gaining profits and reducing losses on trading contracts.
Other than dealing in commodities, indices and forex pair, Nadex also deals in events, for example a fed fund rate rise. Total of 500 contracts are listed under it, which makes it favourable.
Bonuses & Promotions
Nadex does offer bonuses, but not as cash and incentives due to CFTC regulations. They offer fee free trading and commission-free trading days because they would rather want you to trade in an exchange because of your own will, not because they’re offering a tempting bonus.
Mobile App
Nadex’s mobile app is one of the best, most competitive trading apps available in the market. The free of cost application is optimised for different platforms—iOS and Android as well as for windows phone.
With a clear layout and easy-to-access interface, the app leads the way in binary options. Its operations are quick and slick. The best thing is that every information available on the website is available on the mobile app too.
From trading to charting, account management and trading area—the app is certainly useful for traders.
Types of Accounts Offered
The company offers a single account for both domestic as well as international clients. Their demo account is loaded with $/€/£25,000 (virtual money)—both accounts accessible via mobile apps.
Payouts
Payoffs vary, based on strike price for different OTM options, which permit as high as 100% payout on 7 commodities, 10 currency pair, 3 events and 8 indices. The exchange imposes a nominal transaction charge on each contract– $0.90 per contract and $/€/£9.0 per side.
Payouts can be cashed in through paper checks, wire transfers, ACH transfers and debit cards but you need to provide your AML/KYC ID before making withdrawals. All withdrawals are processed via the US Automated Clearing House system, which take up to 2 days to process.
Regulation
Since Nadex headquarters is based in Chicago, their operations fall under the jurisdiction of US laws. All information pertaining to their license can be located on their website.
Demo Account Details
Nadex offers a single account that automatically ropes in a free demo account. The account offers you access to multiple webinars and videos to help you grasp the basics of trading.
One thing that distinguishes it from other exchanges is their trading style that fluctuates between executing binary options and real options. Though Nadex may not offer you all the perks associated with binary options, as in the case of other brokers, but the good thing is that you’re in control of your accounts, not the exchange.
Countries Available
The website offers its services mainly in US and UK.
Final Verdict
Talking in terms of global binary option, Americans are usually restricted by local laws, but not Nadex. Since the exchange is owned and managed by one of the largest derivative trading companies in the world, you get a safe, fair and transparent trading experience where you are the one in control.
You can willing buy or sell options, set your own risk and reward parameter and access trades your own way. There are extensive educational materials, guides and free demo accounts to help you. Quick returns make it all the more promising. The only restriction is transaction fee that applies on various conditions. Overall, it’s an interesting place to try your luck at.