Nadex Review

Review

Nadex is a Chicago-based regulated derivatives exchange designed for the retail trader that offers only limited risk products. It is part of the IG Group, a global financial services provider with a market cap of over £2.2bn.

Unlike many other binary options brokers, Nadex.com is available to U.S. citizens as it is based in the States and is a regulated US exchange, designated by the CFTC (Commodity Futures Trading Commission) and is legally permitted to accept US residents as members.

At Nadex, traders have access to trade over 2,400 binary option contracts daily on some of the most popular financial markets including Forex, stock indices and commodities.

Nadex Available Stock Indices

A Demo account can be opened in less than a minute and traders can test drive-the platform with $25,000 in practice funds.

Accounts

There is one standard trading account at Nadex and it is available to everyone.  It’s free up until the first trade is placed. Then a minimum initial deposit of at least $250 must be made. No additional deposits are required after that but the account must have enough to cover the maximum potential loss that could be incurred on any open positions.

Features

Nadex offers contracts ranging from 5 minutes to one week giving traders multiple short-term daily trading opportunities and as well as the ability to close their position before expiration to minimize losses or lock in early gains.

It’s easy to find some unique features at Nadex.com. Their Binary Option and spread contracts have built-in floor and ceiling levels, which provide the same protection as a stop order without the risk of being stopped out even if the market spikes against the trader. This means that a trader can never lose more that his or her initial collateral because the price of the contract always remains between the floor and the ceiling, and the maximum potential profit or loss is known in advance.

Nadex Contract Specs for Events

The broker operates a competitive capped fee structure, such that the trading fee for each lot traded is $` with a maximum charge of $50 per order. Settlement fees of $1 do apply when a position is held until expiration, with no cap. 

Touch Brackets!

Touch Brackets are a unique type of asset trading that offers specific benefits to traders. The price range is capped at both the bottom and the top, and the value of the contract will move linearly with the movement of the underlying market. If you think the market will rise, you will want to buy. If you think the market will decline, you’ll want to sell the contract. Touch Brackets offer micro lot sizes unique type of trading that offer traders at all skill levels new opportunities. The ability to scale can also be very helpful to traders. The high and low limits work well to help with risk management. There is no slippage and no surprises. Positions with Touch Brackets can also be held overnight.

Call Spreads

Nadex has recently renamed it spreads instrument, to now be called Call Spreads. These instruments lets your trade move between two price levels. You can trade your favorite trading sstrategy with absolute risk protection and natural profit targets. The built-in floor and ceiling of the Call Spreads offers superior loss protection than a traditional stop loss. The range also gives you a natural profit target.

Trade Bitcoin

Traders interested in trading cryptocurrencies such as Bitcoin will be excited to learn that they can trade Bitcoin with limited downside risk, which is a very rare and exciting opportunity, using a contract called Bitcoin Spreads. One of the major dangers in trading highly volatile cryptocurrencies is that you never know whether a stop loss order will suffer from extreme slippage, causing a catastrophic loss, and this danger is present whether you trade spot prices through a broker or buy and sell the actual currency on a typical exchange. The only way to avoid the potentially unlimited downside is to trade an option or a similar instrument. With Bitcoin Spreads, Nadex let you trade the price of Bitcoin (based on the trusted TeraBit IndexSM) within a range, between a floor and ceiling price. As the price of bitcoins varies up and down, the Bitcoin Spread's value moves as well, but within limits. If the underlying price of Bitcoin moves up above the ceiling or below the floor, the value of the spread stops moving and remains at its upper or lower limit (depending on whether you are a buyer or seller). In this way, your risk is always limited and remains within a range you define. One limit is your profit target. The other is your guaranteed protection against unlimited losses. Bitcoin Spreads are available in one-week contract durations.

Mobile Trading

At the end of 2018 Nadex updated its mobile trading platform. Called NadexGo, the platform works in conjunction with the broker’s desktop platform so that you can enter a trade on one device and manage it on another. NadexG updates automatically, so that you’re always using the latest version. 

Education

When it comes to education, Nadex is well equipped with all the latest instructional tools. Webinars are offered for free to registered account holders and they cover a wide range of important topics including beginner and advanced strategies, trading mentalities and more.

There is also a variety of different videos, many of them animated and all of them easy to understand, that cover the gamut of the material all binary option traders should know.

Nadex Educational Videos

Handbooks are also available that are written to help traders understand the fundamentals of binary options, bull spreads, trading strategies and much more.

A full glossary of terms is provided and the FAQs columns are spread out across several different pages to help explain specific concepts and procedures.

News and market commentary are posted on a regular basis often accompanied by appropriate videos.

Nadex Markets News

Customer Support

Traders can contact Nadex customer support with questions about their account by phone or email 24 hours a day from 6pm ET Sunday through 4.15pm ET Friday. There is a U.S. Toll-Free number as well as an international one.  I didn’t see Chat offered.

Deposits/Withdrawals

Deposits can be made via debit cards, bank transfers and wire transfers. Personal checks are also accepted. The maximum amount one can deposit using a debit card is $50,000.

For wire transfers of $5000 or more, traders receive a credit for the wire transfer fee.

Nadex offers two different methods for withdrawing funds from an account: ACH or Wire Transfer. Both can be done via the online form found on the website.

Non-Resident account holders may withdraw funds by wire. Withdrawal requests received after 4PM ET, Monday through Thursday, or after 3:15PM ET on Friday will be processed the following business day. A $25 fee is charged for funds for each wire.

Conclusion

Nadex is a great choice for binary option trading for both U.S. residents as well as non-residents. It offers secure regulation and the maximum risk for any trade is fixed and required in advance so traders cannot be called upon for additional funds should a trade go downhill. The website is well organized and there are some refreshing features.

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Features

One of the best features at Nadex is its website. It is filled with colorful and creative images and it is well laid out and organized. Its educational material is plentiful and caters to clients with all levels of trading experience. The platform offers a variety of short-term choices and many other opportunities to profit in the world of binary options. The accounts are fully segregated and fees are capped at a certain level. What more could a broker offer?

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Platforms

Nadex uses a browser-based trading platform which is fast and flexible and offers a reliable access to the Nadex exchange.

Nadex Trading Platform

The platform provides DMA (Direct Market Access) where traders can see the bid and offer price with the volume of contracts available and trade directly into the exchange. They can enter and exit positions at the level they want by placing orders to open.

Placing an Order on Nadex Trading Platform

The online trading platform is packed with features, but traders can also customize their view so they see only the data and functions they need and can monitor their key markets with the broker’s watchlists. Streaming real-time data comes directly from the exchange with no delayed prices.

There are charts that give real-time insight into the price movements of Nadex contracts, as well as an indication of the underlying market price of a particular asset. Traders can apply technical indicators, view tick-by-tick data and annotate their charts until they are ready to place a trade.

Access to the platform is easy and there are no data fees.

Mobile

The Nadex mobile trading app is free to download and gives fast, flexible and secure access to trade Group, sort and filter strike prices to find the trades you prefer

Traders can search markets in seconds, using dynamic charts to view multiple strikes or landscape to see more price history and add technical indicators.

Charts on Nadex Mobile Platform

A free demo can be opened right from the app and with free virtual money up to $25,000.

A new order type, the Market Order with Protection (MOP) lets traders open positions in fast-moving markets just like a traditional market order, but with protection that guarantees that their fill price will be within a defined range binary options.

Open Positions on Nadex Mobile Platform

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