Nadex is a well-known binary options, knock-out, and call spread contract exchange based in Chicago. Nadex derivative traders are protected by the CFTC. HedgeStreet began in 2004. The aim was to build an electronic platform for average investors to trade financial derivatives. HedgeStreet folded in 2007. HedgeStreet was acquired by UK-based IG Group Holdings Plc. in 2009 and renamed the North American Derivatives Exchange, or Nadex, with advanced instruments and technology. The organization claims to be the top US binary options exchange, which may sound exaggerated, but it has a lot to offer its customers! But is Nadex the right trading platform for you? That’s what we’ll find out in this detailed review.
List of Contents
Nadex : Website
Asset Classes: Binary options contracts available for stock indices, forex markets, commodities and U.S. macroeconomic events
Platform: Web browser platform can be used on PC, Mac, and mobile browsers.
Mobile App: No mobile app is available on Google Play or Apple App Store.
Account Minimum: Initial deposit of $250 is required to open new accounts.
Available Account Types: Standard trading account for binary options, call spreads and knock-outs. Free demo accounts are available with a starting balance of $10,000 in virtual cash; business accounts also available.
The North American Derivatives Exchange (Nadex), situated in Chicago, trades short-term binary options and spreads. In March 2022, Crypto.com purchased the firm. Binary options are permissible in the U.S. on CFTC-regulated exchanges like Nadex (you can also trade binary options through the Chicago Board Options Exchange).
Binaries and spreads on stock indices, foreign markets, commodities, cryptocurrencies, and macroeconomic events like the Fed funds rate and weekly jobless claims are available on Nadex. Trading hours begin at 6 p.m. ET the previous day and continue overnight until 5 p.m. on Monday through Thursday and 4:15 p.m. ET on Friday. Exchange maintenance shuts down Nadex from 5–6 p.m. ET.
Will an underlying asset be above a specific price at a given time? That’s the basis of binary options. Binary options appeal to a range of traders and financial market beginners due to its predetermined profit and loss limits. Even though binary options seem straightforward, you should understand how they function and the hazards before using them in your trading or investment plan.
Customer Support
Access to Nadex’s customer service is simple, regardless of whether you are an existing client or considering starting an account. If you are already a Nadex member, you may contact customer care by phone or email between 3:00 p.m. and 5:00 p.m. Eastern Time (ET) on Sunday through Friday. On Monday through Thursday, from 7:00 a.m. to 8:00 p.m. ET, and Friday, from 7:00 a.m. to 4:15 p.m. ET, prospects can speak with a Nadex Account Specialist. The website provides a toll-free number for U.S. callers and a dedicated line for foreign callers, but there is no TTY line for hearing-impaired clients and no live-chat option for individuals who want real-time assistance.
Trust
Nadex, a CFTC-designated Contract Market and Derivatives Clearing Organization, is a genuine binary options exchange. The U.S. government’s CFTC “fosters open, transparent, competitive, and financially sound markets,” “avoids systemic risk,” and “protects market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act.”
Nadex deposits are kept separate from operating money at BMO Harris Bank and Fifth Third Bank. Privacy-protecting technological, physical, and procedural precautions surpass industry requirements. Nadex’s website also details its products, markets, trading platform, and pricing. The company’s FAQ website answers questions concerning accounts, funding, withdrawal, Nadex trading platforms, and trading.
Desktop Experience
Nadex uses a customized single-page desktop interface. PCs and Macs with contemporary web browsers and Internet connections may use the trading platform. A free demo account with a $25,000 balance lets you try the platform. You may open an account and fund it using a debit card, ACH, wire transfer, or paper check (non-U.S. residents can use a debit card or international bank transfer).
Simple but simple and clear, the trading platform The site provides everything you need to trade binary options and spreads, but not much else. The charts are surprisingly configurable, and switching between charting intervals (time and tick-based) and chart kinds is simple (candlestick, line, HLOC, and Mountain). A few technical indicators, including Average True Range, Bollinger Bands, Moving Average, RSI, and oscillators, are included. Elliott, Fibonacci, and Gann sketching tools are available. Any symbol opens a simple order ticket that supports limit and market orders.
Mobile Experience
In August 2018, Nadex stated that their binary option will no longer be supported on iOS and Android applications. “As you may have heard, unregulated binary bucket shops have compelled Apple and Google to prohibit binary option trading applications… “Despite being a CFTC-regulated U.S. exchange, we were compelled to withdraw binary options from our iOS and Android applications in October 2017 and May 2018, respectively,” stated Nadex CEO Tim McDermott in a corporate letter.
In response to the setback, Nadex developed Nadex Beta, a progressive web application (PWA) that does not require downloads or updates. The PWA, named NadexGO, provides access to the whole range of Nadex’s products via account management facilities, real-time direct market access, and comprehensive charting and technical analysis capabilities. The requirement to shift between the chart and order entry ticket may take some getting accustomed to, but NadexGO otherwise provides the same user experience as the desktop version, although on a smaller size.
Research Tools and Insights
The website lacks extensive research and analysis on particular stocks, and there are no third-party research tools, therefore you are responsible for conducting your own research prior to placing transactions. You may, however, sign up for a series of continuing webinars that provide live technical analysis and market insights. In addition, a news section provides current comments on the markets, as well as analyses of certain commodities, currencies, or industries.
Education
Education compensates for the platform’s deficiency in research and understanding. Nadex instructs users thoroughly on the nature and operation of binary options and spreads. Nadex facilitates the comprehension of these items and their trading. It offers free trading classes and other tools, such as trading e-books, because its company relies on having traders who regularly generate profits over the long term. From an introduction to binary options to advanced guides on trading volatility and trend direction, the collection of e-books, online courses, and videos provides traders with a comprehensive education and a comprehensive reference library as they progress in their trading.
Special Features
The Nadex platform is designed only for trading binary options and spreads, therefore its features are geared toward aiding these trades. Since Nadex is an exchange and not just a broker, you receive free streaming market data from the exchange immediately. Price ladder charts allow you to place orders straight from a chart, and you may pick your markets, do chart research, and place orders all on the same screen.
The binary options and spread contracts offered by Nadex have built-in floor and ceiling levels, so your maximum profit or loss is predetermined. Before you finalize a transaction, the maximum possible profit and loss are indicated on the order ticket, and you can never lose more than this amount.
Investment Products
Nadex is a CFTC-regulated exchange where U.S. and foreign participants may trade binary options and spreads lawfully. As a Nadex customer, you may trade stock index binary options and call spreads. Economic events, Forex pairings, and commodities: the Fed’s funds rate, weekly unemployment claims, and non-farm payroll.
Commissions and Fees
Nadex specializes in binary options and spreads trading, and its per-contract costs are computed. Even if you trade more than 50 futures, the price structure is simple at $1 U.S. per contract up to a maximum of $50. You can exit a trade in one of two ways: by entering a second transaction in the opposite direction, or by allowing the contract to expire.
Pros and Cons
- Comprehensive array of binary options and spreads
- Low service costs and minimums
- A variety of instructional materials, including videos and webinars.
- Traders accustomed to European CFD brokers could find Nadex binary options rather more complicated.
- No incentives or special offers
- Few research reports and tools exist.
Is Nadex A Worth Broker to Get?
Nadex is an exceptional platform for short-term traders who wish to trade binary options and spreads on a fully regulated U.S.-based exchange. Binaries and spreads are offered on more than 5,000 contracts covering a variety of FX pairs, commodities, stock indices, and unique products like as Bitcoin, in addition to the possibility to wager on macroeconomic events such as the Fed funds rate. The teaching materials are broad and well-designed for people who are new to binary data. Active traders interested in day trading and making wagers on a number of items will find Nadex to be the most suitable platform.
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Source: Investopedia