Nadex is currently one of the most popular names in the Binary Options trading space. You’ve probably heard or seen an ad about. Someone could have recommended it to you as well. The key to trading profitably with any binary options broker is being well-informed. All the great thing you might have heard in Nadex ads and recommendations do not count if you do not understand the platform perfectly.
So, what does Nadex offer you? How easy is to analyze the markets and make predictions on Nadex? Is Nadex a regulated binary options broker? Can you trade with Nadex from your country? All these are very important questions that need precise answers. Different binary options brokers have different structures. The binary options broker you choose could be the difference between trading profitably and losing money.
This is a comprehensive and objective review of Nadex as a binary options broker. The review will explore the various features, structures, pros, and cons of the binary options broker. The aim of the review is to give you a clear picture of what trading on Nadex is really like. The review does not in any way seek to promote or disregard Nadex. It only seeks to factually reveal what Nadex offers you as the trader.
Nadex (North American Derivatives Exchange) is a US-based binary options broker that is headquartered in Chicago, Illinois. Nadex has been in operation since 2009. The binary options broker is one of the few in the USA. Binary options brokers are not many in the USA because of strict regulations. Nadex is only legal to USA residents, but it is available to traders all around the world. Nadex is regulated by the CFTC (Commodity Futures Trading Commission). CFTC is the body mandated to oversight binary options trading in the USA. You can trade with forex, stock indices, commodities, bitcoin, or events.
Nadex has trader funds segregated in various banks around the USA. That offers traders a secure and way to trade in the various markets. Nadex is available 6 days a week, 23 hours a day. About 5000 trades are completed every hour on Nadex. Nadex only matches sellers and buyers. It does not take a position on the market. It is therefore ideally an exchange agency, rather than a broker. That means Nadex revenues come from exchange fees, but not their positions on the market. You win or loss does not affect their revenues.
The first step to starting to trade on Nadex is having a trading account. It is quite easy to open a trading account on Nadex. You will just need to fill up an online form. The form requires you to give you details and verify them. Nadex categorizes its accounts based on where you are from. You can have an individual USA resident account if you reside in the USA. If you are from another country, you will need an international individual account. Nadex also offers a business account for USA business and corporations that wish to trade.
Nadex also offers a demo account that comes loaded with $25000 virtual funds so that you can familiarize yourself with the platform. You can sign up for the demo account after signing up for a real account or before. Nadex’s real trading account requires a minimum deposit of $250. You will also be charged $1 for every contract in a trade up to a maximum of 50 contracts. The are no extra charges for 51 contracts and above.
Funding your Nadex account is a breeze, if you are USA resident, you can use a wire transfer or ACH. Better yet you can recharge your account using a debit card. All the deposits you make with your debit card will be credited to Nadex account almost instantly.
You can access the Nadex trading platforms through your desktop browser or the mobile app (NadexGo). Let’s explore the various trading platforms, and see how easy it is to trade on Nadex.
As mentioned earlier, you will get $25000 virtual funds on your demo account immediately you sign up. The account has a structure of the real account, although the trends are simulations of the real market. They are not current market trends though. You can use the trends to test your strategies, although that is never a guarantee that your strategies will work on the real market. The account should help you understand how a Nadex trading account works.
A demo account will always be available for you even after you have started trading on the real account. This allows you to test any new strategies before you start employing them on the real market. The demo account will help you understand the strengths and weaknesses of your new strategy. You can access your demo account from your browser or from NadexGo.
The Nadex trading platform best when accessed from a desktop browser. The platform is quite innovative and user-intuitive. The real account gives you direct access to global markets will real-time indicative data. Nadex will only charge you transactional costs. While trading with Nadex, you will be placing your trade directly on the market, without going through any clearing desk or broker.
You get free real-time charts and data so that you can manage your trade easily. You can clearly see the bids, offers and the number of contracts available. You get your analysis tools and order placement structures on one window. It is quite easy to place, modify and exit orders on the platform. The platform is designed to ensure you trade the way you deem fit, and you employ the strategies that you trust.
As mentioned earlier, Nadex is ideally not a binary options broker, and will therefore not try to get you to trade in a particular way. They will get the same amount of revenue regardless of whether you win or lose the trade. You can trade profitably on Nadex if you have a robust strategy, and you can properly analyze the market trends.
You can access your real trading account from the NadexGo mobile app as well. The layout of the platform on a mobile device might not be as convenient, like that on the desktop browser, but it is still quite user-intuitive. You can place your order from your desktop browser, then manage, monitor or exit it from the app.
As mentioned earlier, Nadex gives you access to the global trading market. Nadex allows you to trade on a wide range of markets from one account, with low-risk binary options and spreads. On Nadex, you get limitless opportunities, but your risk remains the same. The maximum amount you can lose is already predetermined. You cannot lose more than your costs. You don’t get margin calls on Nadex, and you will not be stopped at any point either. The limitless opportunities are alluring, but you should have it in mind that they are always avenues through which you can lose your stake.
The following are the markets in which Nadex allows you to trade.
Nadex allows you access to the US global stock markets without needing ETFs or index futures and with incredibly low charges. The charges are quite impressive as compared to those charged by other brokers. By using binary options and spreads on these markets, you know your possible maximum profit, and possible maximum loss as well. As such, you don’t just sit and watch your market portfolio rising and falling with the market fluctuations. You can manage the risks based on these movements.
Currency exchange is the world’s biggest market by volume. That means you can make some impressive profits on the Forex market if you have perfected the binary options trading craft. Nadex allows you to trade with 10 of the world most popular currency pairs. It gives you an opportunity to work with the currency pairs that can potentially make the largest profits.
You have an upper hand while trading on these pairs, as you working with binary options and spreads. Your risks are always pre-determined. You can trade on the forex market through Nadex 23 hours a day, 6 days a week.
Oil and precious metals are the most popular commodities that are traded on the global markets. The prices of these commodities keep fluctuating. A slight change in the price of a gallon of oil creates ripples in the global market. The movements are risks for some traders, and opportunities for others to make a kill.
You can trade in these commodities with an upper hand if you are trading with binary options or spreads. Nadex allows you to be part of the commodities trade with minimal risks. It is easy to trade while you can measure and control the risks. The costs of trading while trading with Nadex are quite low as compared to trading with brokers as well.
In the recent past, cryptocurrency trade has been the latest craze. It has been one of the most lucrative global trades. It is fizzling out currently, but you can still trade on these markets if you want to. Nadex allows you to trade in the Bitcoin market. Once again, trading with binary options on the bitcoin market allows you to control risks. Regardless of how far the price of bitcoin slumps, you cannot lose more than the predetermined value. This allows you to be flexible while trading in an otherwise volatile market.
These are quite common in the US stock markets. Events involve aspects such as changes ins interest rates. Traders get to predict the behavior of the market based on these events. Nadex allows you to trade with binary options, and attach numerical values to your predictions. You can predict that the number of job claims will go above or below a particular point, or the interest rates will rise or fall up to a particular point.
These predictions are quite similar to those you would make in any other market. The analyses leading to your predictions could be a little different though. There are a lot of factors that affect such events, and they will not always be available to you. You have to properly understand a particular financial market and the current social-political aspects around it so that you are able to make correct predictions.
The trading strategies to be employed on Nadex are no different from those to be used on other trading platforms. The key is being able to understand the charts and use them to draw logical conclusions.
- Technical Analysis – You need to be able to analyze the markets and study price movements. Anyone who has traded in binary options before will tell you guessing in binary options trading is similar to gambling. Even though the trade has some similarities to gambling, it is not gambling in any way. You will certainly lose your money if you approach it as gambling. Technical analysis allows you to study market behavior and watch out for similar trends. Certain trends will always be indications of particular outcomes. You need to learn about moving averages as well. They are the basis of technical indicators. Understanding technical indicators such as stochastics, MACD, or Bollinger bands will go a long way in ensuring you can make correct predictions.
- Money Management – Binary options trading allows you to manage your risks. That means you can easily manage your fund. The aim is to always mitigate the risk that your funds are exposed to. Funds management is quite an easy strategy to follow. You need to ensure you strike a balance between your stakes and the risk involved. If you have a working strategy, and you have full confidence in it, you should take advantage of it. Compounding a great way of money management. Compounding involves adding a raising the stake with a particular percentage in the next trade every time a certain strategy works. If the strategy stops working, you can go back to the initial amount as you try to create a working strategy.
Nadex has a learning center with very resourceful learning materials. The center has webinars, trade examples, videos, and e-books. You should start there if you do not have an idea what binary trading is. Experienced traders will find the learning materials quite useful as well. You can always go there look up something as you try to perfect your strategy. The learning center is easily accessible on the Nadex website. The learning center contains current market news as well. Markets news are quite essential to any serious binary trader. They can offer useful insights about the trends in the market, and allow you to make correct predictions.
As already mentioned, Nadex is regulated by the CFTC. Anyone who has been in the binary options trade knows how the American binary options space is restrictive. Binary options traders on Nadex are fully protected and are assured that their funds will be handled properly. Nadex is quite secure, especially for USA residents. Client funds are held in various banks in the USA, and hence the security of those funds is guaranteed. As a client, you have the right to launch a complaint with CFTC if you feel victimized in any way.
Nadex has partnerships with very reputable organizations are well. CNBC, Bloomberg, and Yahoo are all Nadex partners and they have features Nadex as a reputable binary options exchange platform in various publications. The fact that Nadex’s revenue does not place stakes on the market, means they have no interest in you losing a trade. Their platform has a lot of resources that are aimed at helping you score your trades. That does not mean that you must win all your trades on Nadex. You must have your strategies and predictions right. The credibility of Nadex, even for overseas traders cannot be questioned.
Having explored the various aspects of Nadex as a binary options trading platform, it is quite easy to see why it regarded as one of the best binary options exchange platforms, if not the best. Nadex is properly regulated and you can rest assured your funds are safe and all your trades are real. Credibility is one of the most essential aspects while choosing a binary options trading platform. Nadex also goes all out to ensure you have everything you need to trade profitably. You are likely to make profitable trades on Nadex than anywhere else.
Having said that, none this review should not be taken as a blueprint to trading profitably on Nadex. As mentioned, to trade profitably you need a working strategy. Ensure you are well prepared and informed before you stake your money. Trading is volatile and you risk losing your stake. Nadex does not offer any guarantees that you will win your trades. That should not scare you though, with the right tools of the trade, you stand a good chance of making profits. Nadex offers you one of the best trading platforms you can ever find.