Nadex is one of the few US regulated binary option exchanges. In our Nadex review, you learn how to profit from this unique distinction.
You will learn:
- What is different about a U.S. based exchange?
- Are Nadex’ binary options types and assets worth the investment?
- Does it make sense to register with Nadex if you live outside the U.S.?
With this information, you will be able to use Nadex to make money with binary options. Read our Nadex review here:
Nadex review: What is different about a U.S. based exchange?
Okay, Nadex is based in the U.S. But what does that mean exactly, and which changes does this imply for you? Let’s take a look at these factors one by one.
Nadex is regulated by the CFTC
U.S. based traders face a simple dilemma. To legally trade binary options inside the United States, U.S. traders need a broker or an exchange that is regulated by the Commodity Futures Trading Commission (CFTC), which is the U.S. government’s institution overseeing futures, options, and swaps trading and protecting traders from fraud, manipulation, abuse, and systemic risk.
Since most binary options brokers are based all over the world, operate outside U.S. law, and refuse to accept U.S. control, CFTC-regulated brokers are difficult to find. Even though some brokers accept U.S., they are legally forbidden from doing so. While that does not mean that every non-U.S.-regulated broker is a scam, it does mean that if such a broker is scamming you, there is nothing you can do.
Nadex is the only binary options exchange that is registered with the Commodity Futures Trading Commission. It is, therefore, the only exchange that is legally allowed to offer binary options to U.S. traders.
This regulation provides traders with a great deal of security for a number of reasons:
- You know that there is no illegal business going on with Nadex. With the U.S. government monitoring Nadex, you know that there is a watchful eye that makes sure their service that makes sure their service is 100 percent legal and trustworthy. Since many traders are concerned that if they deposit money over the internet, they might never get it back, U.S. government regulation provides you with the peace of mind that such things will never happen.
- You can sue Nadex if you want. Because Nadex is subject to the U.S. authorities, you know that you have a trustworthy legal system that you can call for help if you have a problem. While it is highly unlikely that you will ever have to use this option, its existence forces Nadex to abide by certain minimum standards and gives you the peace of mind you need.
- You know that you can make money with Nadex. With a broker or exchange that is based on the other side of the world, you never know what you get. If that broker would manipulate its service in a way that makes it impossible for you to trade profitably, you might never know. Without government oversight, nobody else would find out either. With Nadex on the other hand, you know that the CFTC will step in and put things right again.
Combined, these three advantages build the foundation that allows you to create a successful binary options trading career.
Continue reading our Nadex review below…
Are Nadex’ binary options types and assets worth the investment?
Okay, so Nadex is a highly secure binary options excahnge. But can you make money with Nadex? To answer this question, we have to take a look at Nadex’ binary options types and asset.
When it comes to binary options types, Nadex continues their commitment to a unique and customer-friendly service. Instead of offering countless variations of binary options types, Nadex has compressed the best of all binary options types into a single binary options types.
Nadex’ binary options are based on conventional high / low options. Instead of forcing you to base your prediction on the current market price, however, Nadex allows you to choose from twenty to thirty strike prices that you can base your binary option on.
This means, if an asset is currently trading at $100, other brokers would only offer you the possibility to predict whether the market will trade over $100 or below $100 when your option expiries. With Nadex, on the other hand, you can make the same prediction based on 10 to 15 prices above the current market price and 10 to 15 prices below the current market.
In any given situation, this system allows you to choose from 40 to 60 predictions. Since predicting a stronger movement creates a higher payout, you can create an almost endless amount of strategies and risk-reward combinations.
- If you expect a strong movement, you can predict that the market will trade above the highest target price or below the lowest target price once your option expires. This way, you will create an especially high payout.
- If you expect a sideways movement, you can predict that the market will trade below the highest target price or above the lowest target price once your option expires. This way, you can make a safe prediction and win a trade in a market environment where no other binary options type would allow you to win a trade.
- Between these two extreme examples, anything is possible. You can find the right strike price for any type of market movement and can make predictions in situations where no other broker or exchange would enable you to make predictions.
Combined, these advantages make Nadex a high-potential exchange that allows traders to make money in every situation and trade unique strategies.
Does it make sense to register with Nadex if you live outside the U.S.?
Now that we have established that Nadex provides great advantages for U.S. traders, traders who live outside the United States will ask themselves what all of these advantages mean for them. Let’s answer this question.
The first thing that you have to understand is that the CFTC’s regulation applies to Nadex as a whole business, not just to traders that live inside the U.S. That means, all the requirements that guarantee that Nadex offers a trustworthy, honest trading service also help you. You get the same security as any U.S. trader, and you are in no way worse off.
Similarly, international traders get the same revolutionary binary options types and the same wealth of expiries, and they get Nadex’ honest pricing and exact expiries, which puts them in the exact same position to make money with binary options than U.S. customers.
Consequently, international traders can get the same advantages from Nadex as U.S. based traders. We, therefore, recommend Nadex to traders from all over the world. If you are looking for a unique binary options exchange with great security and profitable binary options, you should consider giving Nadex a try.
Nadex combines two advantages that allow traders from all over the world to profit from their service: profitability and security. Since these are the two main foundations of a successful trading career, Nadex is a great partner for all traders that want to enjoy long and successful trading careers, regardless of where they live.