Nadex versus Robinhood

Nadex offers US binary options traders a domestic champion and unrivaled trading conditions. Founded in 2004 and built-up to its current form under IG Markets leadership, who sold the company to Crypto.com in 2022, traders get low-cost binary options, call spreads, and knockouts, from an exceptional management team.

Robinhood is one of the pioneers of commission-free trading in the US but has a questionable operational track record and supplements income with payment for order flow. It experienced explosive growth from 2020 through 2021 amid heightened controversy and criticism before losing clients. Traders at both brokers get a proprietary web-based trading platform and user-friendly mobile app.

We have conducted an in-depth review of Nadex and Robinhood to determine which one presents the better overall choice and which traders will benefit the most at either broker.

• Features and Platforms
• Available Markets
• Typical Spreads and Fees
• Security and Trust
• Nadex versus Robinhood - Verdict

Features and Platforms

Features & Platforms	Nadex (visit site)	Robinhood (visit site)
Headquarter:	US	US
Established :	2004	2013
Retail Loss Rate:	Undisclosed	Undisclosed
Regulation:
Minimum Deposit:	$250	$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee	$10 monthly after 12 months	No
Deposit Fee:	Third-Party	No
Withdrawal Fee	Yes + Third-Party	Third-Party
Funding Methods:	2	2
MT4:
MT5:
cTrader:
Proprietary Platform:
Automated Trading:
Social / Copy Trading:
MT4/MT5 Add-ons:
Guaranteed Stop Loss:
Negative Balance Protection:
Bonuses and Promotions:
Unique Feature One:	User-friendly mobile app	Access to IPOs
Unique Feature Two:	Fixed trading costs	Fractional share trading
Broker Offers:	See what Nadex offers	See what Robinhood offers

Noteworthy:

Neither Nadex nor Robinhood offer algorithmic trading, both cater primarily to beginner traders with a preference for mobile trading, and Robinhood features a branded debit card with weekly rewards.

Available Markets

The asset selection at Nadex remains limited in trading instruments but features dozens of expiry times. Traders get liquid assets, supporting focused trading strategies. Robinhood features a broader asset selection consisting of equities, ETFs, IPOs, options, gold, and select cryptocurrencies, offering better cross-asset diversification, but Nadex caters better to its core trader base.

Typical Spreads and Fees

Nadex offers binary options traders minimum tick values of $0.25 per spot Forex contract, $1.00 for knock-out options, and $1.00 for call spread contracts, plus a fee of $1.00 per contract. Robinhood has issues with trading cost transparency. While it advertises commission-free trading, it engages in controversial payment for order flow.