Before we delve any deeper into this subject, let’s make it clear what NADEX is. NADEX is the North American Derivatives Exchange and as such, it is much more than a run-of-the mill regulated or unregulated broker. It offers its members financial services in a fully regulated, CFTC-licensed environment. From the perspective of NADEX trading signals, NADEX can be considered a regular broker. Traders receive these trading signals and they apply them. If they are good signals, their trades end ITM and they pick up their profits.
What makes NADEX special?
NADEX is the first-ever US-regulated binary option service-provider. We won’t call it a broker, because it isn’t that in the classic, CySEC-interpretation of the concept. NADEX is more like an exchange than a broker and its business model therefore radically differs from that of the binary option brokers who peddle their services in Europe. To make it simpler, let’s just call all these EU-regulated brokers CySEC brokers. A CySEC broker acts as the sole market-maker in the currently accepted setup. In plain terms, that means the broker acts as the “house”, and it trades against retail traders. This is why a very successful trader – or rather, several of them – can actually drive a CySEC broker out of business.
The US business model forbids sole market makers. NADEX have a couple of such market makers, and there is another US exchange where every one of the retail traders acts as a market maker. This way, a fundamental conflict of interest is eliminated. This is the only business model US financial authorities will tolerate on their turf.
From the trader’s point of view, there are differences between CySEC brokers and NADEX too. For US-based traders, NADEX is the only legal, fully regulated trading destination. Traders from elsewhere, who appreciate the protection offered by US regulation and the inherently fair nature of the NADEX business-model, can trade at NADEX too.
What makes NADEX trading signals special?
While the various services peddling their NADEX trading signal offers will want you to believe that there is something special about NADEX signals, that’s not the case. We’ve seen some rather vague statements in this regard out there. Some signal providers say that their trading signals are generated by “advanced trading algorithms”. They all are though. Most signal services use a combination of proven technical indicators to produce their trading signals and that’s that…Certainly, there may be signal providers out there who get flesh-and-blood traders on the case, and refine their technical signals through the addition of their own fundamental analysis. This peculiarity is entirely service-dependent though and it has nothing to do with whether one applies these signals at NADEX or at another broker.
Now then, signal-based trading at NADEX does carry a few peculiarities stemming from the nature of the exchange. This again, has nothing to do with how these trading signals are generated. What peculiarities are we talking about though?
Why signal-based trading is better at NADEX than elsewhere
NADEX carries a few features which make signal trading easier and perhaps more profitable too at the exchange. The first such feature is the high payout one. Due to its nature, NADEX offers higher average payouts than most CySEC brokers out there. On one hand, this means more potential profits for those using trading signals, on the other, it might mean that one may choose to act on potentially weaker signals too, due to the increased profit-margin.
The second signal-friendly feature is about the option-types NADEX offers, some of which suit the trading of complex signals wonderfully.
How to trade signals at NADEX
The trading of simple signals works the “traditional” way. What are “simple” trading signals though? Such a signal will tell you the asset it refers to, the recommended direction of the trade and the expiry. Obviously, the simple Put/Call option type will be used for such signals. Those familiar with the trading interface will be able to place trades based on such signals, within a few seconds.
Complex trading signals on the other hand tell of the exact spot where an asset will be trading at a given time in the future. The decision on how to trade based on this information, is left to the trader. The NADEX 30 strike prices feature is wonderfully suited to trading such signals. All one needs to do is to find a strike price that is close to the predict asset price, and with NADEX 30, that’s always easy.
Since there aren’t other brokers out there who offer anything similar to NADEX 30 strike prices, this feature makes NADEX the best destination for the trading of these types of signals.
How NADEX signals are delivered
Most NADEX signal providers deliver their products through email as well as through SMS. A timely application of these signals is always important, so prompt delivery is in fact part of the success recipe.