Nadex Review


Nadex, acronymous for the Northern American Derivatives Exchange, formerly known as HedgeStreet, is a US-based binary options exchange. Founded in 2004, it became a subsidiary of UK-based publicly-listed brokerage powerhouse IG Markets in 2007. Nadex became the primary binary options, call spreads and knock-outs broker in the US. It offers clients its proprietary trading platform, also available as a mobile app, popular among millennial traders. The asset selection is limited to Forex, commodities, indices, and events.


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Regulation and Security

Nadex is regulated by the US Commodity Futures Trading Commission (CFTC), which grants licensure only to the most reliable brokers and allows for trading in the US. Client deposits remain segregated from corporate funds held at two US banks, BMO Harris Bank and Fifth Third Bank. The regulatory framework creates conditions allowing trading Nadex for a living and speaks to the trustworthiness of this broker, who remains highly regulated and trusted in an industry that was found to be fraught with fraud.

Nadex operates under the oversight of the CFTC.


BMO Harris Bank and Fifth Third Bank are where client deposits remain segregated from Nadex corporate funds. 
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Nadex charges $1 per entry of a binary options contract and exit before the expiry of it. A contract that expires in-the-money, when a client earns from a trade, faces an additional $1 settlement fee. An out-of-the-money transaction, when a trader faces a loss, incurs no further costs. Spread and knock-out contracts carry the same $1 cost structure per contract and a $1 settlement levy on expiry, irrelevant of the outcome.

The only other fee listed is a $25 charge on bank wires, which is not uncommon for US-based banks and other financial institutions. The minimum tick size for spot Forex trades is 0.25, resulting in a tick value of $0.25 for binary options and $1 for call spread and knock-out contracts. A $10 monthly inactivity levy applies after twelve months. Overall, the pricing environment is acceptable, especially for traders using larger lot sizes, and traders can see all spreads and fees clearly on the company's website.

All costs remain listed and explained on the Nadex website, including the Nadex spreads, available under contract specifications.


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What Can I Trade ?

Traders have access to Forex, commodities, indices and events contracts. The contract specifications show eleven currency pairs with up to ten expiry options, depending on if traders prefer binary options, spreads, or knock-outs. Seven commodities with a maximum of three expiry times and eight indices featuring up to five expiration times are also available. Completing the asset selection are four US economic events contracts with a single expiry time. New traders may consider a Nadex demo vs. live account to discover the complete functionality.

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Account Types

Nadex offers all traders the same account type, allowing the trading of binary options, spreads, and knock-out contracts. The minimum initial deposit is $250, suggesting follow-on transactions may have smaller amounts. There is no leveraged trading at Nadex, but a $10,000 demo account is available. Nadex accepts clients from a few dozen countries listed on its website. US-based entities may also open an account with Nadex.

All Nadex clients trade from the same account type. Traders may opt for a $10,000 Nadex demo vs. live account to evaluate the features


Traders from a few dozen countries may open an account with Nadex, listed in alphabetical order on its website. 



US-based entities may also open an account. 
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Trading Platforms

The Nadex trading software consists of a proprietary trading platform. It is also available as the Nadex app for mobile devices, NadexGO, which is popular with mobile and millennial traders. Nadex introduces its platform and Nadex charting software in a short, informative video. Several other videos cover select topics. Nadex also provides FAQs, which discuss its trading platform and features.

Nadex introduces its Nadex trading software to clients. 
A short, informative video and written content about the Nadex charting software and trading platform are available. 
The Nadex app, NadexGO, caters to mobile traders, popular among millennial traders. 

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Research and Education

Nadex maintains a robust blog where it publishes market commentary, ideas about trading strategies, and updates featuring bonus campaigns. Nadex for beginners hosts live webinars, once or twice a week, which provide valuable trading insights to traders. Each webinar starts at noon EST and lasts for one hour. It is where traders get most valuable information. The Learning Center is a combination of FAQs and educational content. It often features a brief video together with written content, providing educational value to new traders.

The Nadex blog offers quality articles covering various topics.


 The live webinars at Nadex deliver a valuable service at this broker. 


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Customer Support

Nadex lists live chat and e-mail as methods to reach out to a customer support representative, which it provides on its website. Nadex also lists its trading hours and provides its physical address in compliance with regulatory requirements.


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Bonuses and Promotions

Nadex offers a 10% initial deposit bonus limited to $100, which is generous compared to many EU-based brokers, who offer no bonus at all. The refer-a-friend program pays out $100 per qualifying referral, up to 10 per client. Terms and conditions apply, and traders should understand them before participating. Nadex occasionally hosts a free demo trading contest and awards real cash prizes. The demo trading contest is available to US residents only, except for Rhode Island.

An initial deposit bonus is available at Nadex, where many EU-based brokers offer none at all.


The refer-a-friend campaign is also generous, with payouts for up to 10 referrals. 


The occasional demo trading contest continues with real cash prizes.


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Opening an Account

A five-step online application caters to new account registrations. Since Nadex operates under CFTC oversight and complies with all regulations, new traders will need to verify their trading account.


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Deposits and Withdrawals

The deposit and withdrawal options at Nadex are limited to bank wires and debit/credit cards to limit the risk of fraud. US-based brokers usually do not provide clients with all choices offered by international brokers in compliance with best practices of safety and regulation. Processing times and costs depend on the payment processor.


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General Information

Company Information

  • Broker's Name : Nadex
  • Headquarters : United States
  • Regulation : CFTC

Account Information

  • Type of Broker : Market Maker
  • U.S. Clients Allowed :
  • Minimum Deposit : $250
  • Maximum Leverage : N/A
  • Account 1 : Standard
  • Demo Account :
  • Islamic Account :
  • Segregated Account :
  • Managed Accounts :
  • Institutional Accounts :
  • Deposit Options :
  • Withdrawal Options :

Instruments Traded

  • ETFs :
  • CFDs :
  • Commodities :
  • Metals :
  • Stocks :
  • Oil :
  • Gold :
  • Binary Options :
  • Indices :

Trading Platforms

  • Type of Platform : Proprietary platform
  • Automated Trading :
  • Guaranteed Stop Loss :
  • Web-based Trading :
  • Mobile Trading :

Customer Support

    • Website Languages :
      • English
  • Support Hours : Undisclosed
  • E-mail Support :
  • SMS Support :
  • Chat :

Pros and Cons


  • Offers binary options, call spreads, and knockouts

  • Great reputation


  • Only 10 Forex pairs available

  • Higher minimum deposit

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Is Nadex legitimate?
Nadex is a US-based broker with rare oversight from the CFTC. It complies with the rules and regulations and has a clean track record. Therefore, Nadex operates as a legitimate and trustworthy broker.

How to withdraw money from Nadex?
Clients must request withdrawals from inside their trading account. They can locate the option under My Account. Nadex may ask for additional documents from traders to confirm ownership of the bank account or credit/debit card.

How to use the Nadex platform?
The Nadex trading platform is straightforward. Traders have to select the asset, direction and expiration time. A five-minute video tutorial is available that delivers a step-by-step instruction on how to place a binary options trade on the Nadex trading platform.

How do Nadex spreads work?
Nadex call spreads follow the call spread strategy, which includes buying and selling a call spread simultaneously. The Nadex call spread represents a single unit with short contract durations and is available in small contract sizes. They have a built-in floor and ceiling, offering more risk transparency, and the pattern day trader rule does not apply.

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Nadex offers traders binary options, call spreads and knock-out trading from its proprietary trading platform. It is regulated by the CFTC, which is a regulator reserved only for the most reliable brokers. Nadex is a subsidiary of UK-based and publicly listed broker IG Markets. It charges binary options traders a $1 fee if they earn money from their trade and allows them the ability to exit the trade before expiry to safeguard against large losses. Nadex features a healthy asset selection. It also offers weekly live webinars to educate its traders and maintains quality educational material on its blog. The bonuses remain generous and attractive. The available offer supports trading Nadex for a living.

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User Reviews

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1 User Reviews

Good company ?? Reliable account managers/traders

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