Nadex Review - Everything you wanted to know about one of the most popular brokers in the world of binary options.
The North American derivatives exchange, Nadex, has been in operation since 2004. It is headquartered in Chicago at 200 West Jackson Blvd, Suite 1400. Betterworldbroker would like to point out: this is the first binary options exchange that has succeeded in having its operations fully legalized in the USA.
Regulation Nadex
The Commodity Futures Trading Commission regulates the operation of the Nadex binary options exchange. But on the territory of Russia no one controls it: neither the Central Bank nor the Federal Tax Service. Moreover, it is not possible to use the services of nadex.com in this country. Only those in the USA, Eastern Europe and a dozen other countries can work with this broker.
Nadex tool pool
These are:
- stocks and indices,
- commodities,
- cryptocurrency,
- forex.
The exchange offers the opportunity to buy and sell options on economic events. For example, weekly and quarterly reports.
In fact, the usual bookmakers offer something similar. Only nadex.com has a much wider range of economic events. For instance, this exchange allows you to bet on whether the Fed's new interest rate will be higher or lower than the current one.
Terms of trading
Minimum deposit is $250. Minimum position - $1.
Types of orders
There are three of them:
Binary option "Above/Lower".
Touch Brackets.
Call Spreads.
They are very different from what Russian speaking traders are used to.
"Above/Outside"
Betterworldbroker points out: this is a real binary option, not what most unregulated platforms offer. If the player thinks the value of the asset will rise, he buys the contract. Otherwise he sells. The value of an option on nadex.com always ranges from $0 to $100. The player risks a fixed amount. And by opening a counter contract, he can close the previous contract prematurely to limit his losses or keep his profits.
Touch Brackets
Every week, the Nadex binary options exchange creates 4 paired brackets. Each has an upper and a lower price level, between which the current quote is placed.
When do Touch Brackets expire?
A week has elapsed since its creation.
The price of the asset touches the "floor" or "ceiling".
What is the task of the trader
To choose one of the bracket pairs whose parameters match his prediction.
Make a decision: buy or sell the asset.
The loss and profit will depend on it. If the player decides to buy, he will win when the price of the asset falls to the lower level - "floor". Otherwise, he will incur a loss. When selling, it is the other way around. For the trader to win, the quote has to reach the "ceiling". The profit is determined by the difference between the initial quote and the price at the time of expiration of the option when it touches the "floor" (the "ceiling") or expiration time.
Call Spreads
This tool is very similar in structure to Touch Brackets. But it only expires when the time expires. For the "ceiling" and "floor" is taken the difference between maximum buying and selling prices. That is why the name of the tool contains the word "spreads". (spreads).
When the bid expires
When the allotted time expires. The passing of the boundaries does not matter. If the player is sure that the quote will move in the direction he wants and bring profit, he can buy an hour or more.
Types of accounts at nadex.com
There are three of them.
The difference between the two lies in the registration requirements. For example, those who want to open a "Business" account need to become a member of Nadex Entity and prepare a number of documents. Otherwise, the conditions are the same.
Commissions and other trading conditions
Nadex is an exchange. Which means that it does not involve its own capital in the trade. Therefore, whoever places the bids pays a placement and expiry fee. His binary options are countered by the bids of other players. Therefore, the profit from the bet may vary.
What is the source of Nadex's income
Commission. It is:
$1 per contract, but not more than $50.
$1 extra for each contract that makes more than $100 profit.
$0 for a bet that does not make a profit.
Having a supervisory organisation minimises non-market risk. And the fact that Nadex is not involved in order servicing eliminates conflicts of interest. It is not profitable for this broker to manipulate quotes, as its only source of income is commission on transactions.
Liquidity providers
As nadex.com is a stock exchange, it is a large market maker. Its services are used by a number of corporate clients trading large amounts. Quotes and liquidity are provided by Nadex Market Risk Management Inc. - a company within the holding company that owns Nadex.
Deposits and withdrawals
Non-US residents may use
debit cards,
Bank wire transfer.
Depending on the payment system you select, the depositing and withdrawal procedure takes from 1 to 5 days.
Do I have to pay a commission when funding my account?
No. But exchange takes $25 for each transaction from deposit. This means that it is more profitable to withdraw large sums than to make small transfers.
How does the broker Nadex work: Is it fair or not?
Russian-speaking traders leave few reviews about this broker. Many of them consider it reliable and, most importantly, regulated. But it has quite a few opponents among English-speaking traders. One of them notes that the exchange's liquidity provider (Nadex Market Risk Management Inc.) creates a conflict of interest by its mere existence. Because it uses its own capital to pay out money to traders and makes money when they suffer losses. The same review of Nadex says that 2 years ago the broker banned the use of API to automate trades. But the liquidity provider still has this option, which puts it in a better position. There are more and more complaints about the slow placement of orders. It takes 20-30 seconds. In short-term trading this is extremely critical. Some players are not happy with the changed interface. In their opinion, it has become more complicated and inconvenient. But not a single review of Nadex talks about manipulation or violation of the rules. Betterworldbroker informs: this binary options exchange has become a tidbit for scammers who promise players to return money stolen from them. They are the ones who leave a lot of negative comments about it, advertising their services.
Does Betterworldbroker recommend registering with nadex.com
Those who want to bet on quotes should not waste their time. They trade real binary options here. Moreover, the exchange is loyal to beginners. There is a small minimum deposit. And the orders do not require a large investment. Getting used to Nadex can be tricky. In addition, regulated by the U.S. supervisory authorities are always very strict approach to verification. This can be a barrier to successful registration.