Nadex is a binary options exchange located in the USA, regulated by the Commodity Futures Trading Commission (CFTC).
Currently, Nadex accepts clients from USA, UK, European Economic Area (EEA) countries, Switzerland, Australia, Gibraltar, Guernsey, Hong Kong, Isle Of Man, Israel, Japan, Jersey, South Korea, Liechtenstein, Malaysia, Malta, Portugal, Singapore, South Africa, British Virgin Islands. Still, the list is ever expanding.
Binary options exchange offers the following underlying assets for trading.
|10 Currency Pairs||Based on underlying Forex Markets.|
|1 Cryptocurrency||Based on TeraBit Index (Bitcoin).|
|8 Indices||Based on underlying Index Futures.|
|3 Metals||Based on NYMEX futures prices (Gold, Silver, Copper).|
|2 Energies||Based on NYMEX futures prices (Crude Oil, Natural Gas).|
|2 Agricultures||Based on NYMEX futures prices (Corn, Soybeans).|
|3 Economic Events||Based on Governmental Reports of Economic Data.|
NADEX, or the North American Derivatives Exchange, is a Chicago, US-registered binary options and call spreads trading exchange established in 2009. Also known as the North American unit of the UK-based brokerage giant IG Group, NADEX is backed by one of the biggest and best-known brands in trading, which should give traders peace of mind that this is an exchange that will take customer satisfaction and security of their operations very seriously.
Regulated by the US Commodities Futures Trading Commission (CFTC), NADEX is overseen by one of the most renowned financial regulatory agencies in the world. Signing up and trading with this exchange should therefore not be a concern for traders from a security standpoint. In addition, the exchange is highly transparent with personal details of everyone in the top management team published on its website, which further adds to its credibility.
Unlike many international CFD and binary options providers, NADEX happily accepts US citizens and residents as clients. The company also accepts residents of most European countries, as well as residents of some other countries. Unfortunately, traders from most Asian, African, and South American nations are not eligible to trade with NADEX at this time.
In terms of instruments offered for trading, NADEX differs from its parent company IG and other international forex providers by offering binary options and call spreads trading based on a variety of underlying assets.
Call Spreads trading on NADEX is essentially the North American equivalent of the CFDs that non-US traders may be familiar with, but without leverage. In the same way as CFDs, it’s simply a derivative that tracks the price movement of an underlying asset. However, call spreads trading on NADEX also comes with built in stops and profit targets (called “floor” and “ceiling” on NADEX) built-in, which under normal conditions makes them less risky, and allows for very easy risk management by the trader.
The underlying markets available to trade on NADEX includes major US and international stock indices, 10 of the most popular currency pairs, bitcoin, and commodities like oil, grains, and metals.
According to NADEX’s website, the exchange is regulated as a financial exchange, and never takes the other side of clients’ trades. Instead, it relies on third party market makers to keep liquidity at high levels, as well as matching technology that automatically matches buyers and sellers in the market.
The costs of trading call spreads and binary options with NADEX are generally low, with the fee for a trade size of between 1 and 50 contracts being USD 1 per contract. The maximum fee is USD 50, which effectively means that any additional contract above the 50th contract will be free of any trading fees. Real-time data streams needed for trading, as well as the trading platform itself, is free to use for traders with NADEX.
Account types on NADEX are organized by jurisdiction and use:
– Individual Account for individuals who are US residents
– Individual Account for non-US residents from eligible countries
– Business Account for trusts, partnerships, LLCs, and corporations
– Demo Account for “paper trading” with USD 25,000 in virtual money
Once you have signed up for a trading account with NADEX, you will be prompted to download the company’s own proprietary trading software, called the NADEX Trading Platform. The platform has an advanced and professional feel, and supports trading of both call spreads and binary options on all markets within the same platform. The platform also comes with apps for tablets and smartphones, making it easy to manage trades on the go.