If you are looking to trade in binary options, you may have come across companies like IQ Option. Now if you are based in the US, you will find that they and other European based binary trading companies have a restriction on people from the United States using their platform. However, that is not the case with Nadex. Nadex or North American Derivatives Exchange to give them their full name, is a exchange house based in Chicago Illinois that provides binary options trading through their regulated platform. Nadex is not a broker, but an exchange house, which means that they act only as an intermediary between binary options traders. They are owned by UK based company IG Group who is a world leader in derivatives trading and an established member of the FTSE 250.
Also already mentioned, Nadex is regulated as a binary options exchange in the United States by the CFTC (Commodity Futures Trading Commission).
Nadex offer three platforms. The first is the web based platform which give you direct access to the Nadex exchange where you get real time indicative data. This means you get to see immediately the bid and offer price with the volume of contracts available. Nadex state that with their unique price ladder charts, you can place orders directly from the chart. Which means you are able to select your market, analyze the chart and place your order without having to change screens. Because their trading platform is web based, you can access it from any computer, be it Window, Mac or even Linux operating based.
The second trading platform they offer is their mobile platform. Available on both iOS and Android, the mobile trading platform enables you to do exactly the same as you can on your desktop, thereby ensuring seamless transition whether on a mobile phone or tablet.
The third and final trading platform is their demo account. the account comes with real-time market data so you can practice trading while using real time market condition. It also come with $25,000 in virtual funds and you can trade in the same markets as the real account, that of Stock indices, Forex, commodities, cryptocurrencies or market events.
Nadex also offer a variety of educational videos to help you understand the platform, how to trade in Nadex spreads, get an understanding on binary options and how to trade them, if you have never done so before.
Nadex do cover a wide selection of financial instruments, although it is not as comprehensive as other binary option brokers. They have 28 assets in total spread across the following markets
Nadex enable you to trade in 10 of the best known forex pairs as limited-risk binary options and spreads. They are: Euro-US Dollar (EUR/USD); Australian Dollar-US Dollar (AUD/USD); Euro-British Pound (EUR/GBP); British Pound-US Dollar (GBP/USD); US Dollar-Canadian Dollar (USD/CAD); Australian Dollar-Japanese Yen (AUD/JPY); US Dollar-Japanese Yen (USD/JPY); British Pound-Japanese Yen (GBP/JPY); Euro-
Japanese Yen (EURO/JPY); US Dollar-Swiss Franc (USD/CHF);
Nadex offer binary trading in three commodities:
Metals – gold, silver and copper, which are based on the futures prices from COMEX/NYMEX®
Energy – crude oil and natural gas, which are based on the futures prices from NYMEX®
Agriculture: – corn and soybeans. Their contracts are based on the futures prices from CBOT®
Nadex enable you to trade both binary options and spread contracts on the futures prices of eight stock indices, Four from the US, which are the Wall Street 30, US 500, US Tech 100 and the US SmallCap 2000. The remaining four are from around the world and are: China 50; FTSE 100; Germany 30 (DAX); Japan 225 (Nikkei)
Nadex enables you to trade binary options on economic events. For example, you can trade on the results of the forthcoming weekly jobless report. If you believe the number of unemployed people in the country is going to go up, you can turn that into a trade. Nadex let you trade in three events, The Fed funds rate which is the overnight interbank lending rate; weekly jobless claims, and Nonfarm payroll.
With Nadex you are not actually buying bitcoins you are dealing in Bitcoin spreads, which enable you to take a short-term position on Bitcoins price.
There are three different types of accounts available, to fit in with your situation. The first is the US Resident account. To open that, you of course need to have a permanent US address, and provide documents that show that, your SSN and date of birth. The second account type is for non US residents and you need to provide evidence of your permanent address,national id number and date of birth. And finally, there is an account for US businesses that are either trusts, companies or partnerships. The requirements to open this account are naturally quite detailed and can be found on their website.
Adding & Withdrawing Funds
If you are a US resident you can fund your account through either a debit card (there is a one-time debit card verification process for any new debit card deposit), ACH (bank transfer), wire transfer -which takes typically 24 hours for them to be notified of your transfer, or you can fund your account by check. You will need to allow five working days from when they receive it, for funds to clear. For non-US residents there are two methods, debit card (also with a one-time debit card verification process for new cards) or international bank transfer.
To withdrawal funds for US residents ther are only two options. The first is ACH withdrawal and if you are going to withdraw funds by this method then you need to allow 3-5 business days for funds to be deposited into your account. The second option is a wire transfer. If you chose to withdrawal funds this way, as long as they receive your request before 4pm ET Monday-Thursday and 3:15pm ET on a Friday, it will be processed that same day. Nadex do charge you a $25 dollar fee for wire transfer withdrawals.
And for non US residents the only way to withdraw funds is via international bank transfer. The same terms apply as US residents, mentioned above.
Concerns /Things To Consider
The main thing to consider is that binary options trading is limited to US residents through other well known international brokers, but Nadex provide US residents to trade in binary options because Nadex is not a broker, it is simply an exchange, where traders come together and trade directly. This is a good thing because it means there is no conflict of interest between you the trader and them. They make their money from the fee they charge for each contract, whether it wins or looses. They have a good free demo account that enables you to practice as much as you want. I have noticed from research that there are a few complaints concerning the customer service. Nothing too drastic, after all they are heavily regulated. There is no live chat on the site, which is restricting if you want help online, although there is a toll free number you can call 24 hours a day, six days of the week. Their assets are limited, but that is not necessarily a bad thing.
Are Nadex the best option for binary trading? Yes and no. Yes if you live in the US, and no if you live anywhere else as there are better options. But also if you don’t want to deal with a broker and do the trade yourself, then Nadex are a good option