Nadex is a fully regulated trading exchange, monitored by the CFTC (Commodity Futures Trading Commission), and is legally permitted to accept US residents as clients. Nadex operate in the US, but form part of the IG Group which is based in London. They offer a real exchange, with both buy and sell positions fully open to traders.
Delivering cutting edge trading tools, and advanced features, Nadex provide a high quality trading experience. The fully documented exchange fee highlights the transparent nature Nadex take to their service. They describe their business as;
“Serving the function of matching buyers and sellers of a contract in an unbiased manner (Nadex does not profit from gains or losses on a trade, rather it simply receives a fully disclosed exchange fee)”
Key info for Nadex;
Nadex Demo Account – Yes (Open free demo account)
Minimum Deposit – $250
Minimum trade – $1
Bonus details – None.
Mobile App – Yes. Android and iOS catered for.
Signals service – No
How to use the Nadex Trading Platform
Nadex provide a real trader to trader exchange. This means traders have the option to buy or sell on both sides of the asset. The trader can also request their own strike price. If another client wants to trade the other side of the option, then it will be opened at that price.
The first choice to be made is the asset to trade. This can be located via the ‘Finder‘ window on the left of the trading platform. Selecting a market opens up the time frames on offer for expiry of the option (times are listed in Eastern Time).
The markets window will refresh once the expiry and asset have been selected. This will display the current price levels that can be traded. Generally, there will be roughly 10 price levels – for example, trading the Nasdaq offers 10 levels. Each level is traded based on whether the closing price (the price at expiry) will be above or below the level shown. The settlement price on Nadex binary options is 0 or 100, so the exchange prices will fluctuate between 0 and 100. 100 represents a positive outcome, (so an asset did finish above or below a certain price) and the option will settle at zero where the option had a negative outcome, so for example where the asset price did not finish above the target price. Remember a trader can buy or sell both a positive outcome, or negative.
Clicking the asset in the market list, or the ‘Bid’ or ‘Offer’ figures – will trigger the trading ticket screen to open. If the bid or offer buttons are clicked, this will result in the ticket opening with the ‘sell’ or ‘buy’ option pre-selected.
The trading ticket confirms expiry time, price level, bid size and the current bid and offer prices. Users then need to click the sell or buy buttons (if not already selected) and confirm the size (investment amount) of the trade. The figures along the bottom of the ticket will highlight the maximum loss and maximum payout based on the scale of trade entered – the ‘max loss’ can be intimidating, but trader can close trades at any time if the price moves against them. Traders can also alter the Price – this is the exchange element of Nadex trading. Traders request a price at a higher or lower level than the current price to wait and discover if their position is ‘matched’.
As each option can be openly traded, clients can close their open trades at any time – so profits can be taken, or losses reduced. The maximum and minimum figures on the ticket represent the two outcomes if the option is left to expire without further trading.
Once the trade is setup as required, traders click the ‘Place Order‘ button. Once matched, it will then appear in the ‘Open positions’ window. If the trade is ‘unmatched’ (either all of it, or partially) it will move into the ‘Working Orders’ screen. Both ‘Open Positions’ and ‘Working Orders’ will update as the order is matched. In addition to these windows, Nadex will also send an email confirmation. Another mail is also sent confirming when an order is settled.
Nadex offer binary trading on forex pairs, commodities (gold, silver etc) and indices, plus certain ‘events’ – a fed fund rate rise for example. They also offer spread betting markets on a similar range of assets. There is a full range of price levels for each asset, so if a trader is looking for a quick price move in a particular index, or a longer term trade in a currency pair, Nadex will provide it.
Nadex offer well over 500 contracts to trade at any one time.
Nadex offer one the best, and most complete, mobile trading apps on the market. The application is free, and has been written and optimised for a variety of mobile platforms. Android and iOS versions are available, as are more specific versions for certain tablets (again, both android and iPad) and also for windows phones.
The application operation slick, quick and importantly, contains every feature available on the full website. Account maintenance to charting, everything is there for traders in the trading app.
The layout is clear while still showing all the data a trader needs, making trading very simple. The dealing ticket trading area appears the same as on the full website platform, as it has already been optimised for ease of use.
The Nadex mobile app includes every feature of the full site, and leads the way in the binary options sector.
The payouts at Nadex are not easy to compare to other brokers – other binary options broker do not offer genuine exchange trading. The binary options will payout depending on the strike level that the trader was able to open the option at. As an example, if a trader brought at 50 and the make up was 100, the payout is effectively 100% (they could have risked $100 for example, and received $200 when the trade settled), but if they brought at 70 and the make up was 100 then the payout dips to around 50% (The amount risked was larger and the profit was less). Nadex charge a trading fee of $0.09 per lot, up to a maximum fee of $9. These charges are transparent, and still represent a ‘better value’ trade, than a more traditional option.
Withdrawal and deposit methods
Nadex allow US residents to fund their accounts via debit cards, ACH transfer of wire transfer. Non-US residents can use debit card, or wire only;
Where a wire transfer is above $5000, Nadex will refund the $20 banking fee into the trading account.
Withdrawals are only available via ACH or wire transfer. Non-US residents can only use wire transfer. The withdrawal options can be found in the ‘Account funding‘ menu within ‘My Accounts‘. ACH transfer withdrawals are free and take roughly 3 to 5 days, while a wire transfer will require a $25 fee to be paid, but is generally processed the next day.
If deposits have been made using a debit card, Nadex will need certain security information before withdrawals can be processed (note withdrawals cannot be made back to debit cards). Nadex also need 7 days to process the security information before accepting any withdrawal, so sort this information out well before a withdrawal is required.
Withdrawal details are not straight forward with Nadex, so it is worth clarifying them well before trying to request a payout. Many of these stages are required due to the CFTC regulations – but delays are a regular problem among traders and their brokers – it is an area to research thoroughly before funding an account. This ensures there are no shocks and traders know exactly what to expect when requesting a withdrawal.
Nadex offer their clients the following features and benefits:
- Transparent trading costs – Nadex are clear about how they are funded.
- Legal for US residents – CFTC regulated, ensuring trader funds are segregated and traders can be confident in the broker.
- Advanced Charting – The charts and technical analysis tools are among the best in the binary options sector.
- Education – Nadex take trader education to the next level. There are regular free webinars not just on how to use the platform, but how to make consistent profit.
Who regulates Nadex?
Nadex are regulated by the CFTC (US Commodity Futures Trading Commission). This represents one of the strongest levels of regulation in the sector. Nadex are one of just two fully regulated brokers in the US.
Who owns Nadex?
Nadex are owned by the UK based IG Group. They have offices in London, and are listed on the London Stock Exchange. IG Group also operate the UK broker IG Index.
When does Nadex open?
The Nadex website is available 24 hours a day, but assets will only be available to trade based on their own regional trading hours. So London based stocks for example, will only be open for trading during UK trading hours. Likewise, US assets will only be open in US trading hours. Some Forex pairs are traded across the globe and will therefore be open around the clock on week days – but the trade volume will vary at times.
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