Nadex is one of the US regulated binary option exchanges. There are far more reasons to sign up with Nadex, though. In our Nadex review, we have tested all aspects of Nadex’ service.
In this article, we will analyze these aspects of Nadex’ business:
- Unique Nadex features,
- Nadex binary options types and assets,
- Nadex banking.
With this information, you will know everything you need to know about Nadex, and you will be able to make a good decision on whether Nadex is the right exchange for you.
Nadex is one of the most unique binary options exchanges traders can find. Usually, when we talk about features, we list all the things that define the character of the exchange. Every exchange has its very own mix of features, which gives the exchange an individual character, even though many other brokers share these features in a slightly different combination.
With Nadex, things are different. Almost everything about Nadex is completely unique, and there are many differences between Nadex and so-called European binary brokers. When we talk about Nadex’ features, keep in mind that saying that you can’t find these things anywhere else is not an exaggeration. If you want these features, you have to sign up with Nadex, or you will miss out on them.
Let’s look at Nadex’ unique features one by one.
Nadex is one of the only US regulated binary option exchanges based in the United States, and that accepts U.S. regulations. NADEX is regulated by CFTC (Commodities and Futures and Trading Commission).
For traders, this regulation is an advantage for three reasons:
- You get more security. Binary options brokers and exchanges are based all over the world. Some of them are completely unregulated, some are regulated by an African government, and some are regulated by the European Union. While the European Union’s regulation is trustworthy, too, having an American exchange that adheres to American rules will make many traders feel better than having to accept an overseas government dictating their trading rules.
- You can buy American. For many people all over the world, it matters where their product comes from. They would rather buy a t-shirt made in the USA than one from a third world country where children are forced to work. Nadex allows you to adapt this philosophy to binary options trading, enabling you to sign up with an exchange that is based in the country you respect.
- You have less trouble with language and translation. As a U.S. based exchange, Nadex’ English is perfect. Every aspect of their homepage feels professional; their customer service is leaving a professional impression, and so on. With other brokers, things can be different. Since some of these brokers have to translate their homepages from another language, they often leave a lot to be desired and seem unprofessional, even though the broker itself might be trustworthy. With Nadex, there is no bad grammar and no bad spelling, which gives you the good impression on how this binary exchange operates.
Because of the CFTC’s regulation, Nadex offers unique binary trading experience in a legal environment. If an unregulated broker from the other end of the world stole your money, there would be nothing you could do. With Nadex, you know that there are some legal obligations they have to meet in order to do their business.
Nadex offers the most flexible high/low options on the market. Other binary options brokers and exchanges offer their high/low options with only one strike price – the current market price. You can predict whether the market will trade higher or lower than right now after your option expired, but if you want to predict a strong movement, there is no way to predict a stronger movement. Consequently, you trade every movement with the same prediction. There are, however, many different types of movements, and trading them all with the same tool makes little sense. If you have found an especially strong movement, for example, only predicting that the market will close higher than the current market price would waste a large part of the movement.
It is important to highlight that Nadex is an exchange and that strike prices are determined solely by the market. Traders can also enter a trade at whatever price they are willing to buy and sell at. If another member of the exchange takes the opposite side, then the trade will be executed.
With Nadex, you are at times offered the opportunity to predict that the market will close above or below one of multiple strike prices. If you expect that a market that is currently trading is at $100 will move to $102, you can invest in a high option based on a strike price of $101.80, and you will be able to get a payout just like with a regular high/low option. This makes trading more interesting.
Nadex is one of only two binary option exchanges that allow you to demo their service without having to make a deposit. To get the Nadex demo, you only have to go to their website, pick a username and a password, and you can start trading for free. In return, you get a fully functioning trading account with $25,000 in play money.
A demo is a great way to test a broker or a binary options exchange. Because you can trade with play money, you do not risk a single Cent while you find out whether you have what it takes to become a binary options trader, whether you like the broker, and which type of strategy is right for you.
Most brokers, however, require you to get a regular trading account before they allow you to test their demo. To get a regular trading account, you need to deposit money with the broker, which creates the unnecessary dilemma of forcing you to invest money in order to find out whether it makes sense to invest money. Often, these brokers require you to invest at least $250 or $500, sometimes even more.
With Nadex things are simpler, especially for beginners. Follow our links to the exchange’s website, sign up for the demo, and start trading risk-free on their demo account. That’s the way binary options should work.
Compared to other exchanges, the Nadex trading platform is in a league of its own. Where other brokers force you to accept crude methods to analyze the markets, often only offering you a small price chart you can’t adjust, the Nadex trading platform allows you to use all of the tools a trader needs.
You can market movements as line charts or candlestick charts, apply technical indicators, adjust the chart’s time frame, and make all the adjustments you need to find a profitable trading opportunity.
Nadex trading platform continues the exchange’s commitment to a different, more advanced service. At the same time, it remains simple and easy to use.
- If you want to keep things straight forward, you can ignore all of the more complex features.
- If you want to learn how to perform technical analysis, the Nadex trading platform offers you the intuitive trading environment that introduces you to technical analysis
- If you already know how to perform technical analysis, the exchange’s trading platform offers you all the tools you need.
All in all, the Nadex trading platform offers every type of binary options trader the right tools to execute the planned strategy.
Nadex offers assets in three categories:
Nadex offers stock indices both from the U.S. and from all around the world. Compared to ETFs and other conventional assets, the great advantage of trading these indices with the exchange is that you can avoid the subscription fee. Where banks and conventional brokers take a part of your money every time you buy an ETF, Nadex allows you to really trade your money without applying such fees.
To make the most of your ETF investments, it can make great sense to carry them over to Nadex.
The forex market is the biggest market in the world by far. With a daily turnover of four trillion dollars, accessibility on six of seven weekdays, and no nightly brakes, the forex market is often considered to be ideal to trade it with binary options. Regardless of which time of the day you prefer to trade, you will always have all assets available to you, and they will always show the high trading volume that makes assets a possible investment opportunity for binary options.
Nadex offers 10 of the most popular spot forex pairs as limited-risk binary options and call spreads. You can trade them 23 hours a day, 6 days a week.
Commodities are the second largest market in the world. Such goods as oil, grains, and gold are so essential to our daily lives and our economy that they, too, are traded 24 hours per day with a high volume. Additionally, many traders have a good intuitive feeling for what will happen next in the commodities market, for example whether the price of oil will rise or fall.
Since conventional brokers and banks only offer abstract, complicated ways of investing in commodities, many traders can profit from Nadex’ straight forward investment opportunities with binary options.
Nadex offers these deposit methods:
- Debit cards
- Wire transfer / bank transfer, and
- Paper check (only for U.S. traders).
This list is unique in three ways:
- It allows you to deposit money via check. No other exchange offers this deposit method, which means that if you want to make check deposits, Nadex is the exchange you should choose.
- In an indication of Nadex’ seriousness in matters of security, they only accept debit cards. Debit cards have the advantage of only allowing their holder to spend money they actually have.
- There are no online payment providers. The internet is anonymous. While this is great for criminals, it is a problem for binary options brokers and exchanges that want to keep their business free from illegal influences. Nadex did the only right thing and eliminated the problem at its root, disabling all online payments.
For withdrawals, Nadex offers debit card payments, ACH and wire transfer. The exchange only allows withdrawals to the bank account and debit card you used to deposit money. This feature makes sure that nobody can steal your money, and that money launderers can’t use Nadex to cover their tracks, both features greatly add to your security.
The minimum deposit for all deposit methods is $250. Compared to other brokers, this value is at the lower end of available minimum deposits.
Nadex is one of the few US regulated binary option exchanges.
Nadex is a unique binary options exchange in every way. As one of the few US regulated exchanges Nadex offers higher level security than any other unregulated exchange. With the occasional offer of multiple strike prices, this exchange also allows you to trade binary options and provides you tools and features that will help you every step of the way. In combination, these two advantages make the exchange a strong combination for any binary options trader.