Nadex Review – Binary Options Broker

Nadex, short for North American Derivatives Exchange, is an exchange house based in the US. More precisely, the company’s head office is located at Suite 2675, 311 South Wacker Drive, Chicago, Illinois. Formerly known as “HedgeStreet,” Nadex was bought and rebranded by IG Group Holdings, a London-based financial services firm.

Even though Nadex is located in the US, the company also accepts traders from most of the countries around the world. The company operates as an exchange house and not as a brokerage. This means that all the contracts are transmitted between buyers and sellers according to a predetermined price. What makes Nadex stand out, as you’ll get to see in this Nadex binary options review, is that the company doesn’t act as a counterparty to the trader’s position and there is no conflict of interest. All orders are transmitted through the exchange platform and Nadex doesn’t play any role in fixing the odds of the trade.

To ensure safety and high-quality services, the company is regulated by the Commodities and Futures Trading Commission (CFTC) of the US. In addition, Nadex has received numerous awards and recognition from some of the best companies in the industry for its dedication to the welfare of their investors, as well as for the extraordinary quality of their products and services.

Nadex Binary Options Broker Comparison


Who Is Nadex Best For?

  • Using Nadex for trading is quite simple.
  • The right choice for all those who want to trade binary options in the US.
  • Suitable for beginners, expert traders, casual traders, and seasoned investors.
  • Users, especially those who are familiar with regular binary options, might need some time to get accustomed to the platform.
  • The company caters to its audience and provides helpful educational resources, reasonable contract fees, a permanent demo account, and no inactivity charges.
  • Nadex does not offer a premium account. However, different types of individual accounts and business accounts are available.
  • This brokerage is least suitable for long-term buy-and-hold stock investors.


Nadex Demo Account

One of the things many traders want to find out from a Nadex review is whether the company offers a demo account. It is quite useful to be able to use such an account prior to making a real investment. Luckily, Nadex provides its registered (and non-registered) traders with a free demo account. One great thing about this account is that the users get the full access to the Nadex platform once they open it. In addition, it is permanent and always available.

Opening a demo account is very easy. The users don’t have to make any deposits, provide a valid credit card or contact support. All they have to do is visit the Nadex official site and choose the option to open a free demo account. In order to complete this action, it is necessary to provide some basic information, including an email address. Then, the users will receive an activation email that includes basic info about the demo as well as certain tips for getting started. The demo account comes with $25,000 virtual funds which can be refilled any time and Nadex provides a virtual refill for an unlimited amount of times.


Nadex Key Features



Nadex Minimum Deposits

Nadex was made to be a platform that can be used by different types of traders ranging from amateurs to various businesses. That is why the company decided to set the minimum initial deposit at $250. What some traders might find surprising to read in this Nadex review is that this amount is actually half the industry average. In addition, Nadex has also made it possible for its users to start trading immediately after funding their account.

This low initial deposit is particularly useful for beginners who don’t want to risk too much capital at the very beginning. In addition, to make the platform even more user-friendly, Nadex provides substantial risk protection. The most a trader can lose in a binary options trade is the amount they paid to enter the trade since the value of a binary cannot go below zero. And, since the users cannot risk more money than they have in their account, the losses cannot exceed the deposits.


Trading Bitcoin on Nadex

Those who are interested in trading cryptocurrencies will be delighted to learn that Nadex offers its users to trade Bitcoin with limited downside risk. This rare and exciting opportunity is possible as a result of a contract called Bitcoin Spreads. The spreads are a bit different from the standard binary option but are very easy to trade. However, the traders should keep in mind that the only expiry available is “end of the week,” meaning that the duration of the contract is one week only.

The name Bitcoin Spread comes from the fact that the contract allows the users to trade the price of Bitcoin within a defined range, between a floor and ceiling price. As the Bitcoin price varies, so does the Bitcoin Spread value change but with certain limits. If the basic price of Bitcoin moves up above the ceiling or below the floor, the value of the spread will stop moving and remain at its upper or lower limit. Many traders are afraid of trading cryptocurrencies since an extreme slippage can cause catastrophic losses. Bitcoin Spread, on the other hand, ensures that the risk is always limited within a range defined by the user. One limit is the profit target and the other is a guaranteed protection against an immense loss.


Nadex Mobile Apps

One important feature that should be mentioned in every Nadex binary options review is the option to do all the trading on your smartphone. Nadex has provided its clients with the desktop Nadex Trader as well as the Nadex Mobile Trader. The mobile app is fully optimized for all mobile devices, including tablets, and it is available at Google Play Store and Apple’s App Store. In addition, the application is available for Windows phones as well.

Nadex traders can use the mobile app to track real-time developments in the financial markets, create watch lists, check their trading account balance, and, of course, execute trades. The application operates smoothly and includes every feature that is available on the desktop version. Despite the size of your screen, the layout will remain clear and show all the information you might need, ranging from account maintenance to charting.


Trader Education

Nadex is one of the few binary options brokers that supplies its traders with proper trading education. Nadex provides a wide range of educational resources such as handbooks, videos, and webinars. Majority of these instructional tools can be accessed by anyone. However, Nadex has also reserved some resources only for its registered users.

Handbooks that are provided are supposed to teach Nadex users the fundamentals of binary options, bull spreads, trading strategies, and more. Videos are animated, easy to understand, and made to provide even more information every trader should know. Webinars are free for registered account holders and they cover a wide range of important topics such as strategies for beginners and advanced users, trading mentalities, and more. Every user can also consult an FAQ section which is spread out across several different pages and explains specific concepts and procedures. Other informational resources include a detailed glossary, trade examples, and news and market commentary.


Trading Conditions

Nadex business model is based on fair exchange trading. However, the platform uses a different business model than the majority of other binary options brokers and it is quite difficult to compare them directly. For example, if a trader who uses Nadex purchases an option contract that costs $40 with the strike price at $100, his payout will be 120%. However, if the trader purchases an option with a price of $70 with the strike price at $100, then his payout will be about 43%. Truly, the risks the traders face are slightly more dynamic than European binaries. However, with the trading cost that is fixed at $0.09 per lot and capped at a maximum of $9.00, the returns offer better trade value and are definitely more lucrative than European binaries.


Payment and Funds Withdrawal on Nadex

Every user will need to fund their account once they sign up. Nadex enabled its users to make a deposit in a number of ways. All users can use their debit card or wire transfer to make a deposit. US residents can also use ACH transfer and paper check. Traders should keep in mind that note bank verification might be required for some transactions. In addition, Nadex doesn’t accept credit cards.

When it comes to withdrawing funds, U.S. residents can use ACH funds withdrawal which is free but might take between three to five days to be processed.  Wire transfer, on the other hand, costs $25 but it is usually processed the same business day. Unfortunately, money can’t be withdrawn to a debit card. When withdrawing funds, the traders don’t have to withdraw all their money; they can always choose a specific amount.


Fees & Products

Since Nadex specializes in binary options and spreads trading, it is important for this Nadex review to point out that all fees are calculated on a per-contract basis. The fee a trader has to pay per contract is $1. However, there is a $50 maximum cap, meaning that a trade of more than 50 contracts will still cost $50.

Clients are allowed to exit a trade any time in one of two following ways – either by placing an opposite trade or by letting the contract expire. If the clients exit the position before contract expiration, they will be charged a $1 fee per contract. Just like with the entry fee, the exit fee has a $50 maximum cap, meaning that the user can be charged only up to $50.

If a user holds a binary option position until expiration and it is profitable ($100 per contract) then he’ll be charged a settlement fee of $1 per contract to close. However, this fee doesn’t have a maximum cap of $50. In addition, if a user holds the position until expiration and it closes out of the money (for zero), they will not be charged a settlement fee.


Account Types

Besides offering the demo account, Nadex has also provided its users with a choice of three main types of trading accounts: individual account for U.S. residents, U.S. business account, and an individual account for international traders.

In order to open an individual account as a U.S. resident, a user will have to provide their permanent home address in the U.S., date of birth, social security number, and copies of documents that can confirm all the listed information.

International traders who want to use Nadex will have to provide their permanent home address, date of birth, ID number, and a document that can confirm their name, date of birth, and address.

Trusts, companies, and partnerships that would like to open a Nadex U.S. business account will have to provide an authorization to act on behalf of the corporate entity, documents that prove the status and ownership of the corporate entity, ID of each signatory on the membership form, Nadex Entity Membership Agreement, Unanimous Consent Resolution, and a W-9 form.



  • Nadex is the only legally authorized binary options broker that is permitted to accept U.S. based traders as well as international traders.
  • The Nadex trading platform is simple to use and it comes with numerous advanced trading tools.
  • All exchanges are regulated thanks to CFTC oversight.
  • Every trader has access to a wide market range.
  • Fees and minimums the traders have to pay are low and affordable.
  • Even non-registered users can open a demo account and see if they like the platform as well as trading binary options and spreads.
  • Nadex provides an extensive library of educational and informational materials for its users.


  • The customer support service can only be reached during the regular office hours in the U.S.
  • Every withdrawal is subjected to a $25 fee.
  • There are no bonuses or promotions mainly due to U.S. regulation.
  • The platform is available only in the English language.


Is Nadex a Scam?

This Nadex review would not be complete without user testimonials. Nadex is not a scam since it is 100% regulated by CTFC. The platform does get its fair share of complaints. However, most of the complaints come from traders who are not allowed to join Nadex, those who fail to understand the system, as well as those who would like to see even more services. But, most importantly, there are absolutely no complaints related to scams, fraud, or shady withdrawals.

Even though Nadex has received many positive reviews, there aren’t many success stories when it comes to this platform. Trading on Nadex (as well as everywhere else) can become quite difficult, risky, and time-consuming. So far, only financial experts have managed to make a living at it. Unfortunately, many Americans are disappointed in Nadex due to their lack of understanding of the platform since there are no signal programs that can lead the way.



Even though there are advantages as well as disadvantages to using Nadex, it is still one of the best choices for those who want to trade binary options in the U.S.. Nadex is suitable especially for beginners and short-term traders who are interested in day trading and placing bets across a wide array of products. The company offers binaries and spreads on contracts that cover commodities, stock indices, forex pairs, cryptocurrency, and macroeconomic events. In addition, all those who are new to binary options will find the extensive educational resources very useful.

What makes Nadex unique is that it is not a typical broker that traders get to see on the internet every day. Nadex is an exchange that allows traders to meet together and conduct their trading activities without participating in the trading activities. Most importantly, all activities on the platform are in compliance with the SEC and CFTC regulations.