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 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

Features & PlatformsNadex (visit site)Robinhood (visit site)
Established :
Retail Loss Rate:
Minimum Deposit:
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
$10 monthly after 12 monthsNo
Deposit Fee:
Withdrawal Fee
Yes + Third-PartyThird-Party
Funding Methods:
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 appAccess to IPOs
Unique Feature Two:
Fixed trading costsFractional share trading
Broker Offers:


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

Available MarketsNadexRobinhood
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
Maximum Pro Leverage:

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

Typical Spreads & FeesNadexRobinhood
Minimum Raw Spreads:
Not applicableNot applicable
Minimum Standard Spreads:
UndisclosedNot applicable
Minimum Commission for Forex:
$1 per contractNot applicable
Commission for Equities:
Not applicableCommission-free
Commission Rebates:
NoNot applicable
Execution Type:
Market MakerMarket Maker

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.

Security and Trust


Country of the RegulatorName of the RegulatorLicense Number
Commodity Futures Trading Commission & National Futures AssociationNFA Number 0340344


Country of the RegulatorName of the RegulatorLicense Number
US Securities and Exchange CommissionUndisclosed

Nadex has a spotless NFA record and outstanding corporate management with an equally impressive history. Both brokers segregate client deposits from corporate funds. Robinhood is also a Financial Industry Regulatory Authority (FINRA), The New York Stock Exchange (NYSE), the NASDAQ, and the CBOE EDGX Exchange (CBOE EDGX) member. The Securities Investor Protection Corporation (SIPC) protects Robinhood clients up to $500,000 per net equity or $250,000 for cash claims. Traders should consider the controversy at Robinhood in the light of the excellent history at Nadex.

Nadex vs Robinhood – Verdict


User-friendly mobile appLimited deposit and withdrawal options
Educational content for beginner tradersLimited choice of trading instruments
Trustworthy reputation now under the corporate ownership of Crypto.comAlgorithmic trading unavailable
Low trading costs for an options broker


Fractional share dealing from $1.00 and access to IPO trading Limited deposit and withdrawal options
Debit card for swift financial transactions with weekly rewardsQuestionable business practices and lack of overall transparency
Beginner traders get a wealth of educational content in written formAlgorithmic trading not available/i>
Optimized mobile app

Neither broker offers traders the MT4 trading platform or supports algorithmic trading, but both provide their proprietary trading platforms and mobile apps. Trading costs at Nadex are cheaper, while Robinhood offers fractional share dealing ideal for smaller portfolios. Nadex trumps Robinhood with a more trustworthy trading environment and notably better management.

Read full Nadex Review


Is Nadex a good trading platform?

Nadex is a good trading platform for US-based binary options traders due to low trading costs and dozens of expiry times per asset.

Can you make money on Nadex?

Nadex provides the infrastructure to make money but does not influence how traders trade. Therefore, the profitability remains entirely dependent on individual trading strategies rather than on Nadex.

Why is Robinhood not a good option?

Robinhood has a controversial track record, engages in payment for order flow, and does not fully act in the best interest of its clients.

What is the minimum deposit for Nadex?

The minimum deposit at Nadex is $250.

How do I withdraw money from Nadex?

The secure back office of Nadex handles all financial transactions.

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