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By: Scam Risk - Expert Reviewer
Nadex Trading Platform Review 2021: Is It Legit?
This review will go over Nadex to see if it really is the best Day Trading course out there.
You’ll learn whether Day Trading is the right online business for you.
And at the end, you’ll find answers to some of the most frequently asked questions regarding Nadex and Day Trading in general.
This system made them swear off Day Trading for good because it uses some of the same skills but in a much more powerful and profitable way!
Table of Contents
Nadex Review
Nadex has an excellent platform for day traders, reasonable costs, and strong customer support.
Do you trade options? For both performance and safety, you’ll need an approved regulated platform.
In this sense, Nadex is unbeatable.
Binary options are permitted in the US, but only through a CFTC-regulated exchange. And Nadex is one of them. Nadex offers rates and services that even unregulated platforms can’t match. Have questions?
Let’s go.
Nadex Overview and Summary
- Nadex is a 2009 North American Derivative Exchange.
- In 2019, IG Group relocated its headquarters to Chicago, where it launched a new website aimed at revolutionizing foreign exchange trading.
- Nadex specializes in binary options and spread trading.
- Nadex spreads offer traders considerable leverage advantages.
- Nadex has minimal, transparent fees and good leverage.
- Nadex offers a free desktop trading platform for PC and Mac. The platform is simple, but it is fast, trustworthy, and intuitive.
- The website lacks research tools and insights. There is limited research on particular stock indices and no third-party research providers; thus, traders who value research must do so alone.
- Nadex is best suited for active, experienced day traders.
What is Nadex? A Forex + Binary Options Broker
Nadex is a 2009 North American Derivatives Exchange. They trade binary options, call spreads, and knock-out contracts.
Binary Options are lawful in the US because the exchange is regulated. The IG Group of London owns it.
On January 1, 2019, IG’s North American branch reopened an FX brokerage firm in Chicago, claiming it had more to give US retail FX traders than the limited competition.
The new forex markets broker joined Daily FX and Nadex in January 2019 under IG Group LLC’s US division. As a result, it returned to Chicago and developed a new website, aiming to revolutionize FXtrading.
Despite firm hopes, the company remained silent until late 2019, when CEO Tim McDermott was replaced by Ian Peacock, President of IG’s US division. The corporation made a risky yet thrilling move.
IG Group executives commented on this, saying,
“We are thrilled about the potential here. We believe in our brand, high levels of customer service, and tighter spreads. Before IG, there were only three retail margin FX providers in the US, with an estimated 90,000 active margin FX traders.
2021 will be an exciting year for the organization, demonstrating its commitment to the region’s potential and giving merchants more.
Is Nadex Safe?
Nadex is a trustworthy, CFTC-regulated US exchange that is exclusively legal in the US.
The company is a CFTC-Designated Contract Market and Derivatives Clearing Organization.
“To safeguard market users and the public against manipulation, fraud, abuse, and systemic risk,” says the CFTC.
Nadex goes above and above to protect clients’ personal data. All money is segregated at Fifth Third Bank and BMO Harris Bank. Also, Nadex’s pricing is transparent, and it clearly describes its products, markets, and trading platform.
Suppose you want to trade binary options with an offshore broker or provider. In that case, you should question whether they are based in the US and allowed them to solicit consumers in the US. “Hint: it isn’t.”
What is North American Derivatives Exchange?
The North American Derivatives Exchange, Inc. (Nadex), previously known as HedgeStreet Exchange, is a retail-focused, online derivatives exchange directed by the Commodity Futures Trading Commission (CFTC).
Nadex allows investors to trade small, low-cost, capped-risk derivative contracts, such as binary options, in various markets.
Is Nadex a Legitimate, Trustworthy to Trade Binary Options Platform?
As a Derivative Clearing Organization and a Designated Contract Market, Nadex is regulated by the Commodities Futures Trading Commission (CFTC). This combination is rare.
Its methods and procedures, customer privacy, and accounting fund segregation all meet or exceed federal data security and privacy regulations.
Nadex tries to describe itself, what it does, what it offers, and how to utilize it. Users typically praise the website’s FAQ section for swiftly orienting newcomers.
But, when it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming a day trader, you’ve got way better options than Nadex.
Keep in mind, I don’t get paid to promote any of the programs I review. I personally think Day Trading is a great business model, but you could end up leaving way too much money on the table.
What is Commodity Futures Trading Commission (CFTC)?
An independent authority of the United States government, the Commodity Futures Trading Commission (CFTC) was set up in 1974 to oversee the country’s derivative & foreign exchange markets. This includes trading in stock indices, futures, swaps, and some options.
An Exchange vs. a "Broker"
Nadex, a CFTC-registered Exchange and Clearinghouse follow the following rules:
- Nadex does not trade and connects buyers and vendors.
- All customer monies are segregated in top US banks.
- Unlike brokers, Nadex’s revenue comes purely from exchange fees.
Nadex Investment Products
A wide number of markets are available on Nadex, the first CFTC-regulated exchange. Trading binary options and call spreads on various financial indices and commodities is now possible for customers.
Trading binary options and call spreads on various economic indices and commodities is now possible for customers.
Customers can now trade-economic forecasts using two new contract types. Both weekly unemployment claims and nonfarm payrolls are speculated, as is the market’s impact.
“The nonfarm payroll and weekly unemployment claims statistics are big releases that give crucial insights into the US economy,” said Travis McGhee, Nadex CCO. These are significant figures affecting US markets.”
Signing up with Nadex gives you access to all markets and binary options contracts.
What Can I Trade with Nadex?
If you primarily want to trade binary options, knock-outs, and call spreads, Nadex has a large selection. This is where Nadex gleams and what the bulk of traders who use this platform are looking for.
Tradeable asset classes include:
- Stock Indices (examples include Wall Street 30, US Small Cap 2000, US Tech 100, US 500, China A50, Japan 225, FTSE 100, Germany 30)
- Forex Pairs (USD/CHF, EUR/USD, AUD/USD, EUR/GBP, GBP/USD, USD/CAD, USD/JPY, GBP/JPY, EUR/JPY, AUD/JPY). Nadex Binary Options and Forex Pairs are based on international standards.
- Goods and services (examples include metals, energy, and agriculture)
- “Macroeconomic occurrences” (examples include nonfarm payrolls, weekly jobless claims)
Nadex Exchange Platform Trading Hours
The Nadex exchange platform is open daily for business, except from 5 p.m. EST to 6 p.m. EST, when trading is suspended for standard exchange platform maintenance.
Otherwise, the following are the active regular trading hours and closures:
- Monday through Thursday: 6 p.m. EST (previous day) to 5 p.m. EST (of the trading day).
- Friday, 6 p.m. EST to 4:15 p.m. EST
- Nadex is closed on Saturday and Sunday.
Each business day, trading hours, as mentioned above, begin at 6 p.m. EST the previous day and continue until 5 p.m. EST the following day. Trading on a regular Tuesday, for example, would start at 6 p.m. EST Monday evening and continue until 5 p.m. EST Tuesday.
Nadex Account Options Explained
Nadex offers four domestic and international account options. It’s a training/demo account. International traders can only open one training and one individual account.
The website says it may be required to upload images from other documents and explains how to do so.
1. Individual (U.S.) account. Opening a personal US account is free and easy (there is no minimum in funding to start using it to trade). You must enter your full name, date of birth, social security number, or visa details.
2. Individual (international) account. To open an individual international account, you must provide your full name, SSN or NIN, and residential address.
3. Training (demo) account. This is a 30-day trial account with $10,000. If a person already has a live account, they can keep their demo account.
With live trading, you may even test out alternative choices before you trade. Setting up a training account takes less than a minute and requires no personal information.
4. Business account (domestic only). A business account is accessible for US-based trusts, partnerships, LLCs, and corporations. To open a business account, please email Nadex (accountopening@nadex.com).
Applicants must sign a Nadex Entity Membership Agreement and a Uniform Consent Agreement and submit formal identification for each account holder. You must also submit papers for your entity type.
Nadex Customer Support
Nadex’ customer service representatives are well-versed and accommodating. Account professionals are available by live chat or email from 7:00 a.m. to 8:00 p.m. ET Monday through Thursday.
Nadex’s live chat function shows its commitment to customer support.
Special Features with Nadex
As Nadex focuses on binary options and spread trading, various features enable and facilitate this. Their reviews are excellent, and they may help you improve your trade. Other Nadex features include:
Market Data
Instead of paying for market data through a broker, customers of Nadex obtain it directly from the exchange.
Advanced Charting
Traders can use advanced charts and tools to construct tactics, such as an Out the Money (OTM) strategy.
It allows traders to select markets, analyze charts, and place orders all from one screen.
Here is a selection of charts and technical features available with Nadex:
- Charts can be easily customized.
- Intervals: time, tick.
- Candlestick, mountain, hloc, line, etc.
- Oscillators, RSI, ATR, Bollinger bands, moving average, etc.
- Tools: Fibonacci, Gann, Elliott
- Create multiple watchlists and switch between them via a drop-down menu. Watchlists can be saved for later use.
- Users like the fact that there is no search engine involved. Instead, it is arranged by folders and subfolders.
Also, unlike most broker-based trading platforms, there are a few neat extras. With Nadex, you may obtain real-time exchange market data right from the UI.
You can flip between views, tools, and even order without ever switching screens. As a result, you can always see your projected profit/loss spread before making a deal.
News Trading
Incorporate market news into a binary strangles on Nadex. The exchange provides daily market comments and videos to assist you in determining and planning your next move. Experts at Nadex develop all content.
Nadex Call Spreads
Nadex’s binary options, knock-outs, and call spread all have a maximum profit and loss. This means you will never lose more than the amount shown on your order ticket before you confirm your trade.
Clients of Nadex will not be charged commissions. Traders will instead pay a $1 per contract fee.
Also, Nadex does not charge settlement fees if a binary options contract terminates in the trader’s favor. This is because trading and settlement fees are the primary source of revenue for Nadex. This may reduce trading costs and improve profits.
Nadex Leverage Explained
Nadex spreads ensure traders receive considerable leverage gains.
US forex traders typically get 50:1 leverage. However, Nadex spreads require no margin and are fully collateralized. Nadex products are not leveraged but rather a short-term solution. However, Nadex spreads can be priced lower than market prices in most circumstances.
Nadex Fees: Transparent and Low
The fees charged by Nadex are straightforward and open. Clients will be notified in advance, and all prices will be explicitly stated. There will be a $25 refunded deposit fee. Overall, Nadex provides inexpensive costs, good leverage, and a low-risk threshold for trading binary options.
The following is the Nadex fee structure:
- There is no annual cost for account maintenance.
- Account inactivity fee: $10 per month after 12 months of inactivity.
- Fee for account funding: There is no fee for ACH transfers from a bank account or debit card.
- Account wire transfer fee: $25 per local or international transaction.
- Account check deposit fee: Depositing money from a checking account is free of charge (Although the website makes it clear that paying a live account with a savings account or any other account whose name does not exactly match your Nadex account may result in delays or issues.)
What Nadex Does Best
Education with Nadex
Nadex puts a lot of effort into explaining binary options and spreads and how they function. Everything is described clearly and simply.
Again, Nadex is not a broker that benefits traders, as Nadex’s long-term success depends on theirs. It’s a win-win.
So it is in Nadex’s best interest to educate their clients, and they do. The company offers everything from beginner guides to advanced strategies for trading in unpredictable markets.
This reference collection can assist any trader to grow from novice to expert in a short time while making the best judgments.
Desktop Experience
When connected to the internet, Nadex’s free desktop trading platform functions on both PC and Mac. The platform is simple, but it is fast, trustworthy, and intuitive.
The platform is built for trading call spreads, knock-outs, and binary options. Therefore it has everything needed for these trades, but not much more.
The charts are configurable, and the indicators include Bollinger Bands, ATR, Moving Average, and RSI. The software also contains drawing tools like Fibonacci and Eliott.
Mobile Experience
Since August 2018, Nadex has been without an iOS or Android app. Tim McDermott, CEO at the time,
According to reports, unregulated binary bucket shops persuaded Apple and Google to ban binary option trading apps… Our iOS and Android apps were forced to delete binary options in October 2017 and May 2018 even though we are a CFTC-regulated exchange.”
Then Nadex introduced NadexGo, an advanced online app that didn’t require any updates. The app gives users access to Nadex’s product selection, real-time market trading data, account administration capabilities, charting, and analytical tools. Like the desktop version, but pocket-sized.
Where Nadex Could Do Better
Research & Insights
The website lacks insights and research tools. A small amount of securities analysis is available. However, there are no independent research firms. Thus traders who value research must do so alone.
However, Nadex’s educational section offers webinars with expert market analysis. Commentary on certain commodities and currencies is also included.
How To Open An Account With Nadex
Opening an account with Nadex is a simple process. Simply choose between the US and an international account, both of which are available in 40 countries.
To complete the application, you will need to supply the following information in no more than five minutes:
- The birthdate
- Proof of address
- National Identification Number or Social Security Number
You may be required to supply supporting papers to authenticate your details. Once accepted, you are not required to trade until you are ready.
Does Nadex Offer a Demo Account?
Traders can access a demo account. You will be given $10,000 in virtual money to play with, and if you enjoy it, you may apply for an account and fund it with a debit card, wire transfer, ACH, or paper check. Traders outside the United States can fund it with a debit card or an international bank transfer.
The Bottom Line
Nadex is a fully regulated exchange with some excellent unique features, low and transparent rates, friendly customer support, and an extensive instructional area.
The Nadex platform is impressive, and its mobile version is nearly identical, just in a smaller size. The firm’s research tools and insights fall short the most.
Overall, if you are a short-term binary options or spreads trader, Nadex is the best’ choice.’ It is available on over 5,000 contracts, covering a diverse variety of assets such as Forex, stock indexes, commodities, and trading on economic events.
Nadex is best suited to active traders interested in day trading.
What Is Our Top Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Nadex falls short is in scalability.
There’s only so much time in a day and there’s only so much money you have to start with.
Let’s face it, unless you have a lot of money to start with, you don’t stand to make much money by trading commodities.
But what if you could make even more money off of little local websites without having to worry all day about losing your money in the blink of an eye?
With this digital real estate program, you can make recurring monthly income without worrying about losing all your money overnight!
Sound too good to be true?
Of course, it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service-based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example, and go by the worst-case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at a bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about spending boatloads of money on a single traffic source to get CRUMBS in affiliate income.
Remember Nadex talking about their little 10% commission off a $50 product?
This one actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice-over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Nadex group in our opinion. This group is much more active.
Unlike Nadex, where you’re getting maybe $5 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact, it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Nadex, more people have been able to walk away from their 9-5 job as well.
Now, we know you probably have tons of questions… So, check this out to learn more.
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