Nadex Review 2019 | Is America’s Binary Option Platform Worth It?
If you wish to trade binary options and live in a place like Europe or the Middle East, there isn’t much of a problem.
However, if you are in the United States it becomes a much bigger issue.
In our NADEX review, we take a look at the ins and outs of using this marketplace to enter the exciting and lucrative world of binary options trading.
It should also be noted that the NADEX isn’t a brokerage, it’s an actual exchange owned by IG.
Trading Platforms and Tools
Browser Based Online Platform
At NADEX, there are only two options for trading. There is the online trading platform that has all of the functionality that you could ever want.
The platform gives you not only is streaming quotes on various binary options, but it also has robust charting possibilities.
Keep in mind that the technical analysis tools are more along the lines of an options trader toolbox, but they are still rather robust for an options trading platform.
As those go, the online trading platform at NADEX is much more robust than what you will find in the European Union.
These charts feature plenty of indicators and drawings, as well as the ability to check out the mid-price.
The charting package pops up in a separate window, giving you the flexibility to layout the platform however you use it.
You also have the ability to create watch lists, working orders, contract profit and loss windows, and even more.
Ultimately, this is a platform that has options markets go, is hard to beat, especially considering that it is free.
There is also a mobile platform, which is a little bit more basic in its layout, but certainly can keep you up-to-date on open positions.
While you can open and close positions on it, it’s a bit too basic to make excellent trading decision so therefore we found that to be thought of as a backup to the original platform.
The market list and bid/offer pricing is updated in real time, and in relatively fast order.
At this point, you should be well versed in the online platform before you risk any type of money on the mobile application, but I will be the first person to admit that the application has gotten quite a bit better over the last several months.
You will find better platforms out there for some brokerages, but quite frankly the platform is one of the best you will find considering that it is free.
Some brokerages will charge you for more deluxe packages, but quite frankly they are needed if you know what you’re doing.
NADEX is focused on short-term binary options. This is not a place where you find retirement packages or anything along the lines of a true investment.
The options run as quickly as five minutes, hourly, every two hours, daily, and sometimes weekly.
There are only a few markets out there to trade on the longer-term time frames, as most people trading the NADEX are more along the lines of the day trader.
The binary options markets that they offer include indices from around the world such as the China 50, FTSE 100, Germany 30, Japan 225, US Tech 100, Wall Street 30, US SmallCap 2000, US 500.
But there are other markets too. Such as oil, natural gas, gold, and silver.
The Forex world is also offered AUD/JPY, AUD/USD, EUR/GBP, EUR/JPY, EUR/USD, GBP/JPY, GBP/USD, USD/CAD, USD/CHF, and USD/JPY pairs are all on tap.
Beyond that, they also offer bitcoin.
The contracts offered include binary options, call spreads, and touch brackets. For more information, take a look at the following pages:
Standard account available
Commissions and Fees
The commissions and fees at NADEX are fairly straightforward. To kick off, you need to deposit $250.02 open an account.
The low fees allow you to trade without worrying about overly expensive commissions/fees.
The fees per side are $1.00 per contract, kept at $50 maximum. If you were to trade over 51 contracts, anything over 50 contracts has no fee whatsoever.
What’s even more interesting is that at expiration, if you were contract is in the money, there is a one dollar settlement fee.
However, NADEX is generous in the sense that if you are expiration is out of the money, they don’t charge you a settlement fee at all.
There are a few other fees to consider. A wire withdrawal or a return deposit will cost you $25.
That being said, account set up, electronic check set up, electronic check deposit, and electronic withdrawal are all free.
With that being the case, you will find that NADEX is one of the more fair places to trade as far as expenses are concerned.
Education and Research
There is what they call the “learning center” at NADEX, which offers resources for learning about trading binary options.
There are webinars, videos, trade examples, and e-books that you can browse in order to learn how to trade these markets.
Beyond that, there is also market news, and a glossary as well. Beyond that, there are even educational courses that you can take.
Are they the crème de la crème of education? Probably not.
However, it is enough to get you started and get you thinking along the lines of what it takes to be a professional binary options trader.
For example, you can take a look at the educational courses at the following page: https://www.nadex.com/learning-center/courses
As far as research is concerned, it’s probably a bit of a stretch to consider it real research.
After all, most of the time you are looking at trading the market for an hour or two, not some type of investment.
While it does give you an idea of where the market may go longer term, when you are trading for the next several minutes, you are more worried about order flow than anything else.
It might be at best give you a directional bias, but there’s much more to trading than that.
If you are already a NADEX member, you can reach customer service via an international telephone number, a US toll-free number, or perhaps even email.
Like most brokerages that deal with exchanges, it’s going to be open for normal US business hours.
They are based in Chicago, so keep that in mind when it comes to hours.
Most of what you will need to contact NADEX over will have to be along the lines of correcting an order, or perhaps even help with opening/closing accounts or positions.
Ultimately, you will find yourself very rarely needing to contact NADEX as the platform is very seamless it seems.
Nadex Review Summary
Platforms & Tools
Commissions & Fees
Education & Research
The NADEX is the premier place to trade binary options in the United States, as it is the only US regulated brokerage firm that can handle any volume.
While there is one other smaller exchange in the New York area, quite frankly it’s very unlikely that it will overtake the NADEX as the volume is so much higher.
However, one of the biggest problems you will have with binary options is that the spread is quite high.
Because of this, options typically close out of the money, and selling premium makes quite a bit of sense.
NADEX is a great place to do that because the spread works in your favor.
That being said, it all comes down to your strategy but collecting premium has been a strategy that we have found to be quite profitable at this exchange.
That’s the rub about options, you either need to have extreme conviction and enough time or sell to those who are either hedging or don’t know what they are doing.
NADEX does take international clients, so it isn’t just limited to Americans.
Even though it’s more US centric, the reality is that several of the binary options market makers in the European Union being closed down has opened up a huge hole for the NADEX to fill.
It appears that they are doing what they can to attract volume flow.
This should tighten the spreads over time, but right now spreads are probably your biggest enemy if you are looking to buy options.
Investors with sufficient capital for stock trading shell consider trading stocks instead of binary options. The fee structures when trading stocks are much better and the liquidity is more transparent as well.