Nadex 2020 Complete Review + Demo

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Nadex 2020 Complete Review + Demo

Today I’ll be providing an in-depth review of the most popular and trusted binary options broker located in the United States, Nadex. With many other binary options brokers being shut down and cast off, this platform is consistently stable and providing traders with a fully regulated environment to trade in. While the platform itself, and waited they approach trading is likely a little different than what you are used to, for safety and peace of mind this is emerging as the clear number one choice for US traders.

Owned and operated by the IG Group, the North American Derivatives Exchange, Inc. is the only binary options exchange regulated by the CFTC. The company headquarters is located at 311 South Wacker Drive, Suite 2675, Chicago, IL 60606. Traders can get in touch with support via email at [email protected] or by phone via 1 (877) 776-2339.

Nadex Review

In terms of trustworthiness, and reliability, Nadex is unmatched in the binary options market. While the majority of brokers are holding withdrawals from their clients, and piling up hundreds of negative reviews, this has never been the case with the North American Derivatives Exchange. Even though I’ve mentioned it already, it’s very important to note that this brokerage is regulated by the CFTC , which gives traders the security and peace of mind required to trade with confidence.

In addition to their advanced security, they also provide “some of the worlds most advanced exchange technology, an online matching engine with no legacy tech holding back innovation.” Their platform boasts over 99.9% uptime, over 5000 contracts traded daily by millions of their clients. They also provide traders with their platform via mobile applications which allow traders to monitor their accounts, and place trades while there on the go. This type of flexibility is very important for all types of traders that are looking to grow their accounts, but still maintain an active lifestyle. Personally, I require a mobile application in 2020, because I want to trade is much as possible, whether I’m at home or on the road.

Aside from providing a secure space to trade, the Nadex platform provides traders with 4 features that set them apart from their competitors.

  • Trading Around the Clock
  • Short Term Contracts
  • Active Markets
  • Risks That You Define

To elaborate, traders can trade 23 hours a day Sunday to Friday, taking advantage of small market movements with short or long-term contracts. Clients also have the ability to set the exact size of their trade, so they are aware of the potential profit or loss it before the traders even placed. This type of mechanism is excellent, as it allows for a simple money management approach, which will limit your drawdowns.

Breakdown

  • Broker Name: NADEX

  • Platform: BO, Spread
  • Founded: 2009
  • Bonus: None
  • Return/Refund: Varies
  • No. Of Assests: 28
  • Regulated: CFTC
  • Demo Account: Yes
  • Minimum Deposit: 250
  • US Traders: Allowed

Nadex binary options demo

One of the main reasons traders sign up with Nadex originally is because of their easily accessible demo account which allows you to test the platform as well as your strategy with zero risk. Registering for demo account is very easy, as the “open a demo account” button is featured at the top of the websites first page. After clicking on this button, traders are required to fill out a short form, with their name, email and country. Once filled out, traders have immediate access to $25,000 in virtual funds which can be traded on all popular markets including stock indices, Forex, commodities, crypto-currencies and market events.

Nadex Platform

After signing up with a demo, you immediately get a visual of the Nadex platform. If you’ve been trading binary options for a while, this may be daunting at first, because it is a little more complicated than most brokers that are utilizing the SpotOption base platform. Instead of using the same white label service that many of the best binary brokers rely on, the North American Derivatives Exchange developers created their own proprietary system which is much more effective at providing traders with real up-to-date strike prices. This makes a major difference in the bottom line for traders, because there is no lag, or interference that can lead to price jumps and devastating losses.

Many clients the deal with platforms like SpotOption constantly complain about price manipulation. There are thousands of examples online of traders claiming that brokers are adjusting prices in the last few moments of a trade to ensure that they lose. While a claim like this sounds speculative and conspiratorial, the mere fact that there are thousands of these complaints definitely lends credence to the argument. Nadex’s proprietary platform makes sure that price manipulation is not possible, so the traders don’t feel like they are in an ongoing battle with their broker, but instead feel like they are in a two-way relationship.

In order to place a trade, all you have to do is click on a contract, set whether you want to sell or buy, set the size of the trade and the amount that you want to invest. This will seem a little more difficult if you are used to the way platforms like Binary Cent and FinRally operate in this market, but after 2 to 3 trades on a demo account you will certainly get the hang of it.

Account types

There are currently 4 options available for traders looking to open a trading account with Nadex. The most popular, are individual accounts for US residents and international citizens. There are no bonuses, or large deposit requirements, as traders can deposit as low as $250 to get started. Depositing this money is very simple, as US traders can utilize a debit card, and international traders can also use the debit method or a wire transfer. Traders are required to provide their permanent residential address, their date of birth and either their national identification number or Social Security number. Once these documents are sent in, traders can start trading immediately on their newly acquired live trading account.

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The other 2 account options, are a business account and a permanent demo account. There’s really no reason to get into too much detail about either of these, as they are pretty self-explanatory. The permanent demo account provide you with $25,000 in virtual funds they traders can use as long as they want, because it won’t expire. The business account is for corporations, trusts and other entities based in the United States that want to trade on the Nadex platform with their business accounts.

Nadex Mobile Application

With the determined effort to lead the binary options market in technological advancements, the Nadex brokerage provides traders with access to their platform via mobile applications for iOS and Android. While some clients prefer to use the mobile website, the Nadex group felt it necessary to give the community as many options as they can to make their platform the most accessible, and easy-to-use in the market.

  • The applications provide “an innovative way to trade a wide variety of the world’s markets, all from one account.
  • Traders have access to multiple assets including but not limited to Forex pairs, crude oil, and cryptocurrency.
  • The app is fully secured, just like their web or desktop platforms.
  • It’s very easy to use, as the group spent countless hours on usability studies in different ways to ensure that the process was seamless.
  • Downloading the application is very easy, as it’s available on iTunes and in the Google Play Store .

For the most part, I prefer the desktop platform, but when I’m not around the house I use the mobile application to monitor my ongoing trades, and seldomly place new orders on the go.

Nadex Spread Trading

One of the most effective ways to trade with the Nadex platform, is to take advantage of their spread trading approach. This is a low risk way of trading, because the trades are sent between 2 levels. This means that there is a built-in floor that will limit your loss, without having to use a stop loss. In these trades, traders still have full control to exit the trade whenever they like, but in providing a ceiling and a floor, traders know before they get into the trade what the maximum win or loss is. This type of protection isn’t provided by any other broker in the binary options marketplace and works well with effective trading signals/software .

Some Nadex Client Feedback

Unlike the majority of binary options brokers, the Nadex client feedback is very positive. It doesn’t matter which review site you go to, you will find nothing but traders leaving reviews with 4 and 5 star ratings. The only complaints traders have about the brokerage is that the platform can be somewhat complicated, and that the broker can be strict in the early processes of opening an account. I have no complaints about either of these 2 issues, because the platform gets easier over time, and we definitely want the broker to be strict, so that they can continue offering the most reliable services available in the market.

The brokerage also has glowing reviews from CNBC , Bloomberg Businessweek and Yahoo Finance .

Conclusion of the review

There is no doubt in my mind that Nadex is the best binary options platform available for traders located in the United States. With millions of clients, and CFTC regulation, there’s really no reason to stop traders from signing up with a broker they can trust.

As far as I’m concerned, there is nothing more important than finding a binary options broker that is going to provide the utmost security when it comes to depositing and withdrawing funds. Once you have the peace of mind that your broker isn’t stealing from you, or tricking you, you can focus on building your trading strategy and growing your accounts.

I hope that you enjoyed my review, and that you will contribute your customer feedback so that we can continue to update this review in 2020 and beyond.

Nadex Review 2020

Thursday, April 4, 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Nadex is not a broker but an exchange for those looking to use derivatives — think binary options — to make short-term bets on the stock market. In fact, it’s the first and largest legal U.S. exchange for binary options, and its name is an acronym for the North American Derivatives Exchange. For traders looking to try binary options, Nadex should be at the top of their list.

  • Extensive educational offerings for traders
  • Expensive trading commissions
  • Risky and limited investments

Who should consider Nadex

Nadex allows access to some of the highest-risk, highest-reward trading in the market — binary options. Binary options probably are not appropriate for beginners or those looking to build long-term wealth in the stock market. But Nadex makes it easy to get started with a $250 account minimum, well within the range to attract new investors.

If you’re interested in placing an all-or-nothing bet on how an asset might trade later that day, then binary options and Nadex might be for you. You’ll have to be willing to handle a lot of risk, however, because the chance of losing substantial money is high.

Not familiar with binary options? They allow traders to make side bets on the market over a short time frame, even hours. For example, one binary option bet could be whether a certain stock is trading at more than $50 by 11 a.m. The price on a binary option is always between $0 and $100, and the payout is either $0 or $100.

There are only two potential outcomes:

  • If the option meets the condition (“more than $50”), it’s worth $100 and the seller must pay the buyer any difference between the sales price and $100.
  • If the option doesn’t meet the condition, it’s worth $0 and the seller gets to keep any money received from selling it. The buyer loses any money invested.

Nadex fees and features

Amount minimum to open account
Commission $1 per contract, capped at $50 regardless of the number of contracts
Account fees (annual, transfer, inactivity)
  • $0 annual fee
  • $0 ACH transfer fee
  • $25 wire transfer fee
  • $0 inactivity fee
Account types
  • Individual taxable
  • Trust
Customer support Phone, Email
Mobile app iOS, Android

Strengths of Nadex

  • Extensive educational offerings for traders: Nadex does a good job of providing a lot of information for traders and would-be traders. The company explains its offerings, including binary options and more complex products such as touch brackets and call spreads. Also included are webinars and videos on how to trade as well as trading news and analysis from third-party contributors. Nadex really tries to get you comfortable with its offerings and how to use its trading platform. And if you’re not quite ready to give real trading a go, you can test out the platform and process by signing up for a free demo account.
  • Low account minimum: Nadex requires a low $250 initial deposit to get started. That’s not a high hurdle, though frequent traders will want to have more in their accounts given the all-or-nothing aspect of binary options.
  • Easy to fund: Nadex couldn’t make it easier to fund your account. You can use the automated clearing house (ACH) to move money from your bank, or if you’re in a hurry, you can get started in minutes by using a debit card. There are no fees for either method, though you also can wire the cash, which may incur a charge from your bank.If you’re ready to cash out, you can transfer your money back to your bank for free using ACH or via wire transfer for $25. Money cannot be withdrawn using a debit card.

Drawbacks of Nadex

  • Limited offerings: While Nadex allows you to bet on many different kinds of markets — including stock index futures, forex, commodities and even economic events — you’re always making a yes-or-no bet on whether a certain thing will happen. Will an index be above a certain level by a certain time? Will gold be trading higher than $1,200 by 1 p.m.? Nadex offers something that isn’t really investing but rather short-term speculation. And it’s the same kind of bet over and over again, always with a winner and a loser.Binary options differ markedly from traditional options, where the kinds of positions are much more extensive and the expirations are much longer. If you’re looking to get started trading traditional options, check out how to trade options.
  • Pricey commissions: At first, it may seem like Nadex charges a low price. After all, it asks just $1 per contract, and Nadex even limits that commission to $50 on any single purchase. So whether you purchase 60, 100 or 200 contracts, you’re paying only $50. Of course, if you sell the options before expiration, there’s the same per-contract fee there too. But there also can be fees when the option expires. If the option is in the money — meaning you won the bet — then you’ll need to pay another $1 per contract as a settlement fee, with no cap. If you lost the bet, you don’t owe any settlement fee.A fee of $1 sounds cheap, but in terms of the percentage of the total cost of the option, it isn’t. With binary options, prices are always between $0 and $100 per contract. So with fewer than 50 contracts, at a minimum, a buyer would pay at least 1% of the purchase price (for a $100 contract) and frequently much more.For example, at $50 per contract, the expense is 2% and at $33, it’s about 3% of the total investment. Those fees are huge in percentage terms, and they get even worse for the option’s winner, with another $1 fee on the back end of the trade.
  • Risky investments: Binary options are by their very nature risky trades. They’re all-or-nothing bets on a short-term move in some asset. The short-term nature of the options means that traders are simply guessing where the market will move in the next few hours. That’s less investing than betting.

Is Nadex safe?

Nadex is an exchange, not a broker, so it doesn’t have a need for the kinds of guarantees traditionally offered by brokers, such as coverage under the Securities Investor Protection Corporation (SIPC). However, as a contract market, Nadex is regulated by the U.S. Commodity Futures Trading Commission (CFTC). It’s one of only three markets legally offering regulated binary options in the U.S., and it’s the largest.

CFTC regulations require client assets to be held in segregated bank accounts, and Nadex stashes them in high-quality banks such as BMO Harris and Fifth Third Bank. Both banks are FDIC-insured, meaning that assets are guaranteed up to $250,000. Of course, any money you put at risk through trading can be lost in its entirety.

Final thoughts

Nadex certainly isn’t for everyone, especially for investors who want to build long-term wealth. But if you’re a trader who is willing to trade the high risk for the potential high reward, Nadex could be the place to go. Plus, the low minimum and easy-to-fund account get you in the market quickly. But watch out for the commissions, which take a higher percentage of your bets than it seems.

If you’re looking to trade more traditional kinds of options and do so cheaply, you should check out eOption, which offers some of the most competitive prices in the market. Another good choice here is Interactive Brokers, which offers an all-around good experience for active traders.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Investing

Review of Vanguard Personal Advisor Services

Thursday, April 2, 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Vanguard Personal Advisor Services is the investment advisory service offered through Vanguard Advisers, a wholly owned subsidiary of Vanguard, Inc., one of the world’s largest investment management firms. Vanguard Personal Advisor Services focuses on serving individual investors, including high net worth individuals. Clients work with human advisors, but also have access to Vanguard’s digital advice platform.

All information included in this profile is accurate as of April 2, 2020. For more information, please consult Vanguard Personal Advisor Services website.

Assets under management: $83.7 billion
Minimum investment: $50,000
Fee structure: A percentage of AUM; one-time financial planning fee for some workplace retirement plan participants
Headquarters: 100 Vanguard Boulevard
Malvern, PA 19355
vanguard.com
800-416-8420

In this review, we’ll cover:

Overview of Vanguard Personal Advisor Services

Vanguard Personal Advisor Services is the investment advisory arm of Vanguard Advisers, a wholly owned subsidiary of Vanguard. The advisory part of the business launched in 2020, decades after Vanguard was founded in 1975 by the late John “Jack” Bogle.

Bogle introduced the first-ever index fund to retail investors and encouraged them to buy and hold a diverse basket of low-cost investments. Though Bogle passed away last year, the firm aims to continue his legacy.

Vanguard Personal Advisor Services is focused on providing ongoing advisory account services for individual investors as well as point-in-time financial planning for retirement plan participants. Vanguard Personal Advisor Services oversees $83.7 billion of Vanguard Advisers’ total $221 billion in assets under management (AUM).

Which types of clients does Vanguard Personal Advisor Services serve?

Vanguard Personal Advisor Services primarily serves individuals, including high net worth investors and those who get services through their workplace retirement plans. For reference, the SEC defines high net worth individuals as those with at least $750,000 under management or a net worth above $1.5 million.

The individual investors either come for financial planning via their workplace 401(k) plans, or they are retail investors with an IRA or other account with Vanguard. In the latter case, there’s a minimum investment requirement of $50,000. The firm does not provide financial planning services to clients who do not have accounts with Vanguard.

Services offered by Vanguard Personal Advisor Services

Vanguard Personal Advisor Services offers financial planning and point-in-time advice to participants in Vanguard workplace retirement plans. Those participants are not eligible for managed account services for assets in those plans.

Clients who have an IRA or other retail account worth at least $50,000 with Vanguard can use Vanguard Personal Advisor Services to get a customized financial plan and enroll in the firm’s “ongoing advised services.” That gives an advisor the authority to make trades on the client’s behalf in accordance with their agreed-upon plan. It also allows participants to call advisors about advice on financial issues that arise as they hit life’s milestones, such as buying a new house or having grandchildren.

Here is a full list of services offered by Vanguard Personal Advisor Services:

  • Investment advisory services/portfolio management
    • Asset allocation strategies
  • Financial planning
    • Retirement planning
    • Estate planning
    • Charitable giving
    • Succession planning
    • Tax planning and management

How Vanguard Personal Advisor Services invests your money

All participants in Vanguard Personal Advisor Services get a financial plan, including the creation of a portfolio with a diverse asset allocation that reflects your personal financial situation, goals and risk tolerance. To do that, the advisors rely on an algorithm, which recommends an investing track and glide path, or asset allocation strategy, that meets your needs. The investment tracks range from very conservative to very aggressive, and the glide paths adjust over time, depending on your goals.

Each portfolio includes a variety of Vanguard index funds with holdings in a specific asset class, such as international stocks or short-term bonds, but it does not recommend investments in individual stocks or bonds. In addition to diversification, the portfolios take taxes into account, aiming to keep the investments as tax-efficient as possible. In general, Vanguard encourages a long-term, buy-and-hold approach rather than switching strategies based on market performance.

Fees Vanguard Personal Advisor Services charges for its services

Employees who use Vanguard Financial Planning Services through their workplace retirement plan pay $1,000 for the service if they have less than $50,000 in assets with Vanguard, and $250 if they have $50,000 to $500,000 with Vanguard. The firm may waive that fee for clients who are over the age of 55 or who have more than $500,000 invested with Vanguard.

For clients of Vanguard Personal Advisor who don’t have a workplace retirement plan and are enrolled in the ongoing advised services, the firm charges a percentage of assets under management. Rates run from 0.30% for accounts of less than $5 million to 0.05% for accounts over $25 million.

Assets under management Annual rate
Under $5 million 0.30%
$5 million to under $10 million 0.20%
$10 million to under $25 million 0.10%
$25 million and over 0.05%

In addition to the above fees, you may also pay fund fees, annuity fees, account fees or retirement plan fees.

Vanguard Personal Advisor Services’s highlights

  • A dedication to low fees. Vanguard literally invented index investing, and the firm remains dedicated to keeping its fees low. Its fee schedule is substantially lower than the industry average total fee rate of 1.17%, according to RIA in a Box.
  • Excellent reputation. Vanguard Personal Advisor Services was named the “Brand of the Year” in 2020 for digital investing by Harris Poll EquiTrends. The title was awarded based on consumer devotion and respect.
  • Fee-only model. Advisors don’t receive commissions for selling products or making recommendations, so they do not have a financial incentive to do so, which can pose a potential conflict of interest.

Vanguard Personal Advisor Services’s downsides

  • High minimum balance for young investors. You need to have $50,000 invested with Vanguard (outside of your workplace retirement plan) to access its investment management services if your employer is not enrolled in the program. That could be a high bar for young investors or for those who haven’t been saving for long.
  • Less potential upside: Since Vanguard’s investment philosophy is built on a buy-and-hold strategy comprised of low-cost funds, you can expect your investments to perform in line with the markets, but advisors aren’t actively trading to try to “beat the market.”
  • Large digital component: While you’ll work with a human advisor to create your initial plan, future check-ins may take place via the platform’s digital interface. Clients with $500,000 or less in assets do not have an assigned financial advisor, though they can call to schedule an appointment at any time.

Vanguard Personal Advisor Services disciplinary disclosures

Vanguard Personal Advisor Services does not have any disciplinary disclosures. All registered investment advisors are required to disclose any legal, regulatory or criminal events in their Form ADV, documents they file with the SEC.

Vanguard Personal Advisor Services onboarding process

To learn more about working with Vanguard, you can call (800) 414-8740 or create an account online to set up an appointment to talk with an advisor. In your initial conversation, you’ll discuss your financial situation and goals, and share information about all your financial accounts. Your advisor(s) will spend a few weeks creating a plan, and then you can decide whether you want to implement that plan and allow them to manage the account on your behalf.

If your portfolio is worth less than $50,000, you’ll work with a team of advisors, while those with a portfolio worth more than $500,000 have a specific, dedicated financial advisor. Advisors will check on your portfolio on a quarterly basis, making adjustments as needed to your asset allocation. You can check in online or call your advisor or team at any time.

Is Vanguard Personal Advisor Services right for you?

The firm may be a good choice if you’re an investor with at least $50,000 looking for a low-cost, low-maintenance way to manage your money (or your employer has chosen Vanguard as its retirement plan provider). Vanguard Personal Advisors offers extremely low fees and boasts a clean disciplinary record.

For investors who have less than $50,000, or who are looking for a more active approach to asset management, another firm might be a better fit. As is always the case when choosing a financial product or service, it’s important to shop around, ask questions of financial advisors and make the choice that’s best for your unique situation.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Nadex Review

​Nadex, also known as the North American Derivatives Exchange, is the largest U.S. based exchange for trading limited risk, and low cost binary options. Nadex is currently the only regulated exchange available to United States citizens and all funds deposited are secured in top U.S. banks, rather than offshore like other international brokers.

With Nadex, you can trade spreads and binary options on a large variety of financial assets directly from your phone, tablet, or computer. Opening an account with Nadex is free and they have a low minimum deposit, which makes it ideal for beginner and novice traders.

But how does Nadex stack up to the competition? Is it really a legitimate platform for trading binary options or is it just a scam? In this Nadex review, I’m going to share everything you need to know.

Table of Contents

​Nadex Ratings

Trading Platform

​​Features

​Payouts

​Customer Service

​Asset Selection

​Deposits and Withdrawals

Company Overview

Founded in 2004, Nadex was initially known as HedgeStreet. It provided a digital space for traders to buy and sell binary options. Now, it’s the largest brokerage for binary options in the US. Nadex is a subsidiary owned by the UK-based IG Group. The headquarters are in Chicago.

The Commodity Futures Trading Commission (CFTC) regulates Nadex. When it was still HedgeStreet, it was the first digital derivatives exchange accepted under the purview of the CFTC. Regulations require Nadex to hold member assets in segregated funds in different financial institutions across the country.

​Chicago, United States

​Deposits and Withdrawals:

​​Check, ACH Bank Transfer, Wire Transfer, Debit Card

​Stocks, Commodities, Indices, Forex, Cryptocurrency

​Number of Assets:

​Commissions and Fees:

​$1 Per Contract, Capped at $50

Assets

Nadex allows traders to participate in trading assets in markets across the globe. Traders can ho ne in on a particular market. Alternatively, they can take advantage of all the options available to them. Currently, markets traded on Nadex include:

  • Commodities, such as crude oil and gold.
  • Stock indices, including Wall Street 30 (Dow), S&P 500, Japan 225 (Nikkei), and more.
  • Forex markets.
  • Economic events, such as unemployment rates.
  • Cryptocurrency.

By nature, all trades conducted on the Nadex exchange are of limited risk. Traders will never lose more than they initially pledge. With Nadex’s low initial deposit, traders can participate in the global market immediately.

Trading Platform

Nadex offers three different trading platforms: a web browser client, a mobile progressive web app, and a free demo platform. Users can connect the web and mobile platforms to sync account information and trades between each device. The demo platform provides new users with the ability to test trades in real-time using virtual currency.

Web Platform

The Nadex web browser platform is the exchange’s primary tool for trading. It’s accessible from any Mac, Windows, or Linux operating system. It’s compatible with recent versions of the Firefox, Google Chrome, Safari, and Internet Explorer desktop browsers. Users do not need to download or purchase the web platform separately.

The web platform provides an in-browser way to navigate the Nadex exchange. It allows traders to buy, sell, and modify orders. Traders can do so without the need for input from a broker. Traders can freely view as market prices change in real-time. Nadex generates graphs and charts to this end.

Mobile Platform

NadexGO is the mobile Nadex platform. It is accessible from any smartphone. It allows access to full trading features and products on-the-go.

NadexGO is a progressive web app (PWA). This means there’s nothing to download and nothing to update. PWAs are fast-loading and reliable regardless of network connection. Users can access NadexGO almost anywhere. It’s compatible with the main browser client, allowing traders to sync their account on each device. The design permits an easy hand-off between the two.

Demo Platform

The Nadex demo platform is ideal for learning the basics of binary options. It’s a platform for trading without sacrificing real funds. The demo platform gives each user $25,000 in virtual capital. Users can allocate this capital as if it were real to test the Nadex exchange. It is available for testing both desktop and NadexGO platforms.

The market data and trends that appear to demo users are the same ones as for full users. The demo platform also allows traders to:

  • Understand market volatility and
  • Learn to set appropriate risk parameters
  • Learn to use the Nadex exchange interface
  • Test trading strategies in real-time

Users can continue practicing on their demo accounts even after signing up for a real account. This allows traders to continually test trade strategies before carrying them out with actual capital.

Trade Types

Nadex offers three different financial products: binary options, touch brackets, and call spreads. Each offers different short-term contracts and built-in risk management systems. Binary options are exotic financial products. As such, they may be unfamiliar to even experienced traders.

Binary Options

Binary options are the financial products at the core of the Nadex exchange. Their most noticeable feature is the type of risk associated with them. They offer a fixed payoff or no payoff at all upon reach expiration. When a binary option expires, the value of the traded asset will fall on either side of the strike price. On one side, the trader receives nothing at all. On the other side, the trader receives a fixed price. In the US, this fixed price is always $100.

A binary option has three characteristics:

  • The underlying asset. The assets can be in any of the tradable industries hosted on Nadex. These range from commodities to stock indices, Forex pairs, and even Bitcoin.
  • Its expiry date. An asset is either worth nothing or $100 upon reaching its expiration date.
  • Its strike price. This is the level that decides whether an option is “in the money” or “out of the money.” For a payout, buyers want it in; sellers want it out.

Binary options have a fixed risk. That means traders can’t lose more than they initially invested in a trade. Additionally, Nadex does not issue margin calls since trades are fully funded from the beginning.

Touch Brackets

Touch Brackets are a new type of product, unique to Nadex. They allow traders to act based on price action and bet on the direction of an entire market.

Touch Brackets last a single week. At the beginning of the week, Nadex will set four brackets for a market. Each has a different price ceiling and floor. Nadex tracks a measurement called the Nadex Underlying Indicative Index. When the Index number “touches” the price ceiling or floor, traders receive a profit or loss. If the market doesn’t fluctuate enough in a week to register a touch, then the Touch Brackets expire.

This new method allows traders to focus on the larger picture of a given market. It provides a macroscopic view rather than individual assets.

Call Spreads

In the Nadex exchange, a call spread refers to the unique way that certain trades have a discrete floor and ceiling.

When trading in vanilla options, there’s theoretically unlimited potential for loss and gain. No one can truly predict market trends with complete certainty. That means it’s always possible for a dramatic drop – or dramatic increase – in the value of a market. Nadex call spreads intend to help limit market volatility to some extent.

Call spreads remove the potential for traders striking it rich in a single trade. But, they also ensure a limit on losses better than a stop-loss order. They do this by implementing hard limits on how high or low a market can go. If a value surpasses a call spread limit, it will be held at either the floor or ceiling in question. No more, no less.

By implementing limits and eliminating stop-loss orders, traders cannot get stopped out of a trade. That allows traders to wait for better prospects as the market rises and falls, rather than stopping prematurely. It can also help manage the risk-reward ratio when used right.

​Deposits and Withdrawals

​Nadex offers a variety of deposit and withdrawal methods for U.S. residents and Non-U.S. residents.

For deposits, you can fund your account with the following:

  • Debit Card
  • ACH (bank transfer)
  • Wire Transfer
  • Paper Check

For withdrawals, you can choose between:

  • ACH Withdrawal
  • Wire Transfer
  • Debit Card

Education and Training

To help those new to binary options, Nadex offers an extensive library of educational resources. Most resources are free. However, there are higher-level webinars available only to members. These educational materials include:

  • Trade examples and tutorials. These are samples of trades conducted by Nadex experts. They include guides to trading and explanations of decision-making strategies. As well, there are recommendations for controlling risk.
  • Live webinars. These are weekly live events featuring Nadex educators. They answer questions in real-time and host discussions. They also demonstrate example trades.
  • Trading videos. A library of hundreds of videos with a new entry every week. These videos cover various topics, such as step-by-step explanations of trading concepts and current market breakdowns.
  • Online learning courses. These are free e-learning courses. They introduce binary options and trading basics.
  • E-books. Free for download, these e-books are introductory lessons on Nadex trading. They help with navigating risk and market volatility.

The Nadex educational library is comprehensive. Resources range from basic starters on binary options to more in-depth topics, like touch brackets and advanced risk management. The vast majority of these learning materials are freely available. Would-be traders don’t have to make an account to learn.

​What We Like About Nadex

With its size and prominence, Nadex has a number of considerable strengths. Here are a few reasons why we like Nadex:

  • Regulated for US traders. In fact, Nadex is the only binary options exchange regulated for the US.
  • Market range. There are tons of markets available for traders looking for variety. Crude oil, Bitcoin, economic events – Nadex has it all.
  • Low trade costs. Nadex is accessible to all traders, not just the ones with enormous liquidity at their disposal.
  • Demo accounts. Would-be traders can test out of the exchange in real-time with $25,000 in practice money.

It’s true that Nadex isn’t for everyone. But for those looking to dive into trading, do their research, and learn the markets, Nadex may prove to be a valuable endeavor.

Commissions and Fees

There are no fees for establishing an account or using any of the Nadex platforms. They will not hit traders with fees for letting accounts go inactive.

Traders can begin using the Nadex exchange with a minimum $250 initial deposit. This is one of the lowest minimum deposits required by any binary options trading exchange. There is no fee for transferring funds from a bank account to a Nadex account. To withdraw funds from a Nadex account, traders can use an ACH for free or a wire transfer for $25.

Regarding trade fees, there is a $1 fee to open a contract, maxing out at $50 per order. Even if you purchase 51 or 100 contracts, the opening fee will never exceed $50. There is a $1 closing fee for each trade if it ends in the money. If a binary option expires without a payout, Nadex does not collect the $1 closing fee.

​Customer Service

Nadex places a heavy emphasis on the availability of their customer service. In addition to their educational materials, their customer support focuses on accessibility for new traders.

Traders can contact Nadex customer service representatives directly over the phone or by email. They can help navigate trading platforms and answer questions about an account. Representatives have a strong understanding of trading. They can explain aspects of the process you may not understand. For those with short questions about general trading, Nadex experts take questions on-air during live webinars.

For current traders, customer support in on-hand at 1-877-776-2339 for those in the US. Investors outside of the US should call +1 312 884 0100. Traders can also email [email protected] for assistance. Representatives are available at any time between 3 pm EST Sundays and 5 pm EST Fridays.

Opening an account can be freely done on the Nadex website. For assistance in this process, Nadex Account Specialists are available from 7 am to 8 pm EST Mondays through Thursdays. On Fridays, they are available from 7 am to 4:15 pm EST. The US phone number is 1-866-296-0167. The international number is +1 312 884 0162.

​Nadex Review Conclusion – Final Thoughts

It’s true that there’s significant inherent risk in binary trading. Those interested in Nadex should be sure to thoroughly audit their own finances before starting. It’s also important to conduct careful research on markets and assets. Users should be prepared for the risk of loss, which Nadex caps at the initial investment amount.

Regarding security, Nadex is the largest exchange to offer binary options that the CFTC regulates. The CFTC requires Nadex to hold assets in segregated bank accounts. That means client assets are in a large, well-trusted financial institution instead of an offshore account. Nadex uses trusted institutions like Fifth Third Banks and other large US firms.

All that being said, Nadex is not for the faint of heart. New traders may find the exchange attractive because of the low initial deposit. However, there is a learning curve involved. It’s wise to make use of Nadex customer support and their official educational materials when joining.

As with all investment endeavors, there is no get-rich-quick guarantee when using Nadex. But for those interested in binary trading options, Nadex is undeniably at the forefront of the industry.

Robert Wolfe is the founder and chief editor of Impact Investing Collaborative. Robert is an expert trader with over 10 years of experience trading binary options, Forex, and CFDs. He prides himself in providing accurate and in-depth reviews in order to help others find a trading platform that fits their needs. When Robert isn’t actively trading or managing Impact Investing Collaborative, he enjoys spending time with his 3 kids, playing golf, and spending time outdoors.

Welcome To Our Site!

My name is Robert Wolfe and I’m an online trader with over 7 years of experience trading financial instruments such as binary options, CFDs, forex, and stocks. I created this website to share my knowledge of the industry so you can avoid the same mistakes I’ve made.

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