Nadex Review: Is it Best for Binary Options Trading?

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Binary options are leveraged financial derivatives that can give investors an opportunity to make decent returns within a short time. They are also quite risky as well but if you know how to trade them, then you can easily get by. Despite this, one thing you need to become a successful binary options trader is a good brokerage account.

There are several online brokers that can give you access to the North American derivatives exchange markets. While some of these firms also double up as forex brokers and tend to offer additional financial services, if you want a top broker that offers immense value when you trade binary options, then Nadex has to be top of your list.

In this review, we will look deeper into the firm, what it does, and give you a list of pros and cons should you decide to open a Nadex account today. We will also give you details about how the firm works and what you need to get started with its trading instruments.

Nadex Review: What Is Nadex?

Nadex, which stands for the North American Derivatives Exchange, is a top-rated exchange that focuses on trading binary options, call spreads, and a series of innovative financial instruments. The firm is based in the US city of Chicago and is part of IG Group.

Nadex is also a regulated exchange. In fact, it is regulated by the commodity futures trading commission, and its segregated bank accounts are secured in some of the biggest banks in the world. Nadex also offers innovative tools that allow investors to take advantage of a wide range of assets in the financial markets. These include access to forex markets, stock index futures, options, and others.

Users also get access to a state-of-the-art trading platform including some of the leading binary option trading apps out there. You also get technical indicators in your live account to help you trade knock outs and call spreads, take advantage of economic events, and so much more. As for novice traders, there is a huge library of free trading courses to help you get started with spread contracts in the highly risky derivatives market.

How does Nadex work?

As a CFTC regulated exchange, there are certain conditions you will have to meet before you get started with Nadex knockouts. The first thing to do here is to open a trading account. Nadex is only available in a very small select group of countries. So, before you think of trading a binary options strategy here, ensure that your country is included.

However, please note that a binary option, call spreads, and knockouts are all leveraged derivative products whose value is based on an underlying asset. These are all very risky and there is a risk of losing money rapidly due to leverage. Please consider if you understand how derivatives markets work and whether you are comfortable with your own risk.

Nonetheless, once you place the application to open a trading account, Nadex customer service representatives will go through it and send you a notification in less than 24 hours. Most applications get approved and if there is something wrong, the Nadex exchange will let you know what needs to be done. The next step would be to deposit funds into the account.

Retail investor accounts that want to start trading derivatives often get several deposit options including wire transfer or international bank transfer and others. As soon as the deposit is in and reflected into your account, you can now go ahead and access the Nadex trading platform. From there, users can manage their account, start to trade stock indices, trade in-the-money options, out-of-the-money ones, buy knockouts, call spreads and so many more. Please also note that Nadex does not have a minimum deposit.

What are the Features of Nadex platform?

Nadex has worked so hard to create an innovative and tech superior platform for trading CFDs like knock outs, call spreads, forex pairs, and a host of so many assets. But there are a few features that truly stand out. Here are some of them:

Excellent Trade Execution

Binary options are often very dynamic and price action moves really fast within a short period of time. For this reason, traders need fast and reliable tools that can offer efficient trade execution in an instant. That’s what you get with Nadex.

The moment the underlying market moves, you will get live market data and innovative trading tools to open and close your position seamlessly. The tools and trading platforms are available all through the trading hours for both demo accounts and live trading accounts as well.

Huge variety of tradable assets

You will also get a huge variety of tradable assets with Nadex derivatives trading. Whether you are looking for CFDs in forex trading, knockouts on several underlying markets or a call spreads trade on commodities and metals, this is the brokerage for you.

Besides, there are also the Nadex binary options and while members risk losing money due to the risky nature of these instruments, you can still trade and make money. Besides, traded binary options come with risk management tools to help you safeguard your capital.

State of the art security

Nadex has also done well to offer users the best security on its trading platforms while keeping trading costs low. In fact, customer deposits are banked in segregated accounts to ensure they are safe. The money is also not used by Nadex in any way.

The firm has also invested in regular security audits by repeatable firms. This ensures that any weaknesses in its systems are identified and addressed as soon as possible. In that case, you can trade knock outs and call spreads here with all the peace of mind you need to win.

Free Demo Account

A lot of novice traders often lack enough confidence to get into the market, especially the highly risky derivatives market. This is why Nadex offers users access to a demo account with live market news and market data to ensure you sharpen your trading skills before jumping into the real market.

The demo account also gives new traders access to all the underlying assets tradable at the Nadex exchange including stock indices forex, call spread contracts, and so much more. No minimum initial deposit is needed for you to trade with the demo account.

Super customer support

You will also be happy to know that the Nadex customer support team is well versed and ready to help you with anything. In fact, the customer support team is divided into various sections to cater to customers with different needs. This makes it more efficient.

Besides, not a broker out there can do without a reachable customer support team. Nadex knows this and as such, it gives you several different options to reach out and have any issues resolved within 24 hours. Whether you have questions about the designated contract market or perhaps you want to know how Nadex will protect market users, reach out and get all the answers you need.

Nadex Pricing and Plan?

Nadex has a wide range of trading and settlement fees. These fees are not standards and will depend on which assets you are buying and selling in the derivatives markets. Nonetheless, compared to other brokers, Nadex fees are low and well within the scope of what you would expect from such a high-profile firm.

In case you want to trade binary options, entry and exit fees are fixed at around $1 for every call spread trade. The same $1 fixed commission is also charged to enter and exit call spreads and knock-outs. There will also be deposit and withdrawals fees as well. For a wire transfer, the fees stand at $25 for withdrawals. The low fees make Nadex exchange one of the most popular and user-friendly places to trade binary options in North America.

Who is Nadex Best For?

Nadex is designed to target several types of investors. First off, it is important to keep in mind that Nadex involves risk. So, before you make the minimum initial deposit through wire transfer and start opening binary option trades, please take some time to understand what you are doing. With that said, Nadex is first of all suited for the savvy investor with deep knowledge of the market and associated economic events.

Trading options with the right strike price and managing risk requires very experienced financial experts. As such, you will need that experience to trade some of the risker assets available on the Nadex exchange. Also, in case you are a tech-savvy trader who needs advanced trading tools and state-of-the-art risk management, then you are also invited to check out Nadex.

In fact, the firm has some of the most advanced trading tools you can find in the market. But in case you are a novice trader who has never done this before, do not worry. Nadex also offers a comprehensive education program that will train you how to get started with binary options, forex pairs, and other CFDs. However, it takes time to learn these things and it’s best to use different sources as well. Just be patient and soon enough, you will also get by.