Is there a Nadex scam? We have analyzed their business and reached a surprising conclusion.
In this article, we will analyze the three ways in which Nadex could be a scam:
- Is Nadex trying to steal your money?
- Can you make money with Nadex?
- Is Nadex safe?
Once we have tested these three criteria, we can conclude whether or not Nadex is a scam, putting you in the perfect position to decide whether or not to sign up with them.
Nadex scam: Is Nadex trying to steal your money?
Any online investment business is under scrutiny by definition. When people deposit money over the internet, they always fear that they never get it back and that the other side is trying to cheat them. Without a human face to trust in, these fears are understandable.
In the case of Nadex, however, these fears are completely unwarranted. When dealing with Nadex, you might not have a nice lady smiling at you from the other side of the counter, but you have something better: the U.S. government is guaranteeing your safety.
Nadex is one of the few U.S. based binary options exchanges and the only exchange that accepts U.S. government regulation. With the most powerful government in the world on your side, there is little that can go wrong.
When you deposit money with Nadex, you will get it back. We have never heard of a case where someone had a problem with Nadex; you have the U.S. government making sure that there is no illegal business going on, and you can rely on an effective legal system if there should ever be a problem. If safety is important to you, this is the perfect environment to trade in.
Verdict: No scam.
Nadex scam: Can you make money with Nadex?
‘The second way in which Nadex could be trying to scam you is indirect. Instead of stealing your money, they could simply offer a trading service that makes it impossible for you to make money. Gradually, you would lose all your money, and Nadex would have scammed you like a guy on a street corner.
Luckily, these fears are not only unwarranted; the exact opposite is true. Nadex offers a number of features that put you in a better position to make money than with any other binary options exchange or broker.
The most prominent of these features is Nadex’ periodically feature of multiple strike prices for every single option. Where other brokers or exchanges force you to invest based on the current market price, thereby severely limiting your flexibility and accuracy, Nadex allows you to trade every prediction as exactly as you want.
If you want to predict that an asset which is currently trading at $100 climbs to $101, for example, most other brokers or exchanges would only offer you high / low options to trade this prediction. You would predict that the asset will trade higher than the current market price once your option expires, but you would essentially waste the prediction of how much higher. Instead of investing in a $1 movement, you would be investing in the smallest movement possible – a $0.01 movement. As a result, you would get a much lower payout than your prediction deserves.
With Nadex, you can choose one of their 30 available target prices to predict the exact movement you think will happen. Because you are predicting a more significant movement, you will get a higher payout, and you will make more money than if you would trade the prediction with high / low options.
Consequently, Nadex offers you much better chances to make money than most other brokers and can hardly be considered a scam.
Verdict: No scam.
Nadex scam: Is Nadex safe?
The final point in our analysis is safety. Even though Nadex is trying their best to enable you to make money, if these efforts are based on week security, someone might steal your money. Nadex would not be directly responsible for your loss, but their neglect could be considered a scam.
These fears, too, are unwarranted. Due to its U.S. government regulation, Nadex is subject to the same safety requirements as the country’s banks, and they live up to these requirements:
- SSL encryption for all communication: Nadex uses the SSL encryption code for all of the communication between traders and their trading platform. Because the SSL standard is the safest thing the web has to offers, it is impossible for anybody to intercept your data, steal your password, or perform any other illegal activities.
- Thorough validation process for withdrawals: If you want to withdraw money from your account with a withdrawal method you have used before, there is no need for Nadex to be suspicious – they know the money will end up with you. If someone wants to withdraw money to a new account or a new credit card, however, this could very well be a thief. To keep your money safe, Nadex, therefore, asks everybody using a new withdrawal method to provide a picture of your ID, your proof of residence, and (if the withdrawal is by credit card) the credit card being used. Since only you have all of these documents, only you can withdraw money from your account – a 100 percent safety guarantee for your money.
In addition to these two effective security measures, every other aspect of Nadex’ service is completely safe, too. Consequently, Nadex is no scam in this regard, too.
Verdict: No scam.
Nadex is not a scam. Every aspect of their service complies with the highest standards someone could have for only trading.
- Nadex is not trying to steal your money,
- You can make money by trading with Nadex, and
- Nadex is completely safe to use.
If you want to get started with Nadex, follow one of our links and sign up with Nadex now!