Nadex

BASIC INFORMATION

Nadex is a US-based exchange providing powerful trading tools and advanced features to traders of all experience levels. Nadex is not a brokerage, but a CFTC-regulated exchange. Nadex focuses on trading in binary options Knock-outs™ and call spreads on the most popular traded commodities, forex and stock index futures. The exchange was launched in 2004 and was originally known as “HedgeStreet”. The objective at that point was to create an electronic marketplace that facilitated trading in financial derivatives to retail investors.

However, by 2007 HedgeStreet closed its doors. UK-based IG Group Holdings Plc. purchased the company and in 2009 HedgeStreet was re-branded the North American Derivatives Exchange (Nadex), with sophisticated new technology and instruments.

Its worth highlighting that while the parent company is based in London and listed on the FTSE 250, Nadex headquarters are in Chicago, Illinois.

REGULATORY INFROMATION: LICENSE

No valid regulatory information

Please be aware of the risk!

MARKETS

Part of the improved product range saw a greater choice of binary options.

In fact, their binaries and call spread contracts cover an array of underlying markets, including commodity futures, equity index futures and spot forex rates. Furthermore, Nadex members can take positions on all of the following assets on:

· Stock Index Futures – US 500 (S&P 500), Wall Street 30 (DOW), US Tech 100(Nasdaq) US SmallCap 2000 (Russell 2000), FTSE 100, Germany 40(DAX), Japan 225 (Nikkei), China 50

· Forex pairs – EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, EUR/GBP, USD/CAD, AUD/JPY, GBP/JPY, EUR/JPY, USD/MXN

· Commodities – Crude Oil, Gold, Silver, Copper, Natural Gas, Soybeans, Corn

SPREADS & COMMISSION

Nadex charges a fixed fee of $1 per side, per contract.

Nadex Call Spreads

Nadex also offers a unique product called “Call spreads”. These are offered on a number of markets, including stock index futures, commodities and forex. But fear not – understanding these spreads is straightforward.

You can trade the price of a market like EUR/USD within a range. As the price of EUR/USD fluctuates, so does the spread, although it remains within a predetermined upper and lower limit.

Its worth highlighting that if the value of EUR/USD exceeds one of the limits, the EUR/USD spread value will come to a standstill at whichever limit it is breaching.

At the upper limit, the spread stops at a maximum value. At the lower limit, the spread reaches a minimum and will not lose any more value, no matter how far the underlying market drops.

LEVERAGE

The advantage of Nadex spreads in terms of leverage also needs to be explained. Normally, spot forex traders in the US, for example, cant get better than 50:1.

Nadex spreads are fully collateralized and dont involve margin. They are not a leveraged trading product, but more like a short-term option. However, in many cases the cost of a Nadex spread can be lower than trading the underlying market outright.

ACCOUNT TYPES

Opening a Nadex account is relatively straightforward. There are just two account types to choose from, a US individual account and an international individual account available for residents of over 40 other countries.

PAYMENT METHODS

Once you have signed up, you will need to go about funding your account. Fortunately, Nadex offers a number of ways you can go about deposits and withdrawals, including:

· Debit card

· Wire transfer

· ACH transfer (US residents only)

· Paper check (US residents only)

DEMO ACCOUNT

Nadex offers a free practice account. Once you have your demo login details you can use the same platform and real-time data as those with live trading accounts. Signing up for a demo account is the ideal way to practice generating profits without having to risk real capital.

TRADING PLATFORMS

· MetaTrader 4

TRADING HOURS

Nadex trading hours will be the same as the asset you are trading. This includes both the regular and electronic trading hours. From Sunday evening until the close of markets on Friday, US Eastern Time, Nadex offers trading 23 hours a day, with an hour off from 5pm to 6pm for exchange maintenance.

CUSTOMER SUPPORT

Nadex exchange reviews are quick to praise the customer service component of their offering. If you have any problems, you can make contact via email or live chat.

ACCEPTED COUNTRIES

Nadex only accepts traders from United States.