Nadex Review

Nadex claims to be the “premier U.S. binary options exchange” and, while it might seem a bit excessive, the company offers a safe and regulated environment for traders of binary options, knockouts, and call spreads. Binary options markets can be a breeding ground for scammers, but Nadex is regulated and regulated by the Commodities Futures Trading Commission. This gives U.S. clients safety in the sometimes dark world of derivatives. The commissions are fair, the desktop platform is simple to use, and Nadex offers only derivatives. There are no stocks, bonds or ETFs. Nadex can be a good choice if you are familiar with the risks associated with these derivatives. If you don’t have the necessary knowledge to trade these complicated instruments, it is better to stick with traditional brokers.


  • Binary options traders
  • Call spread and knock-out traders
  • Traders who are skilled in understanding derivatives markets


  • It acts as an exchange and not a broker. There are no misaligned incentives
  • Open to U.S. clients
  • You will find detailed educational materials and tutorials.


  • Only for derivatives
  • No mobile app
  • Minimum deposit required

Nadex Ratings at A Glance

Why choose Nadex over others?

  • Large variety of tradable market: While you cannot trade stocks, ETFs, bonds or other securities on Nadex, you can access many different markets via options contracts. Binary options allow you to buy and sell stocks, commodities, currencies, and macroeconomic events.
  • Trustworthy counterparties Many traders shudder when they hear the words “binary options”, as complex derivatives often exist in unregulated areas. All kinds of fraudsters and scammers are attracted to this market. The CFTC regulates Nadex and clients can rest assured that fair and honest trading is possible.
  • High quality educational tools: The learning center has a lot of educational material. This is essential for trading derivatives that are not well-known to the general trading public. A glossary, tutorials and webinars are all available. Blog articles will cover everything, from market insights and individual trading strategies to the basics.

Brokerage Quick Summary

Nadex stands for North American Derivatives Exchange. It is a Chicago-based company that has been in operation for over ten years. Nadex doesn’t operate as a brokerage but rather an exchange that matches contract buyers and sellers. Nadex is an exchange, not a broker. This means that clients and firms can get the best trade parameters.

Asset ClassesBinary options contracts are available for stock indices and forex markets, commodities, and U.S macroeconomic events.
PlatformThe web browser platform is available for Mac, PC, and mobile browsers
Mobile AppThere is no mobile app available for download on Google Play or Apple App Store
Minimum AccountTo open a new account, a $250 deposit is required.
Account TypesStandard trading account for binary options and call spreads, as well as knock-outs. Demo accounts can be opened with a $10,000 virtual cash balance; business accounts are also available.

Nadex Fees and Commissions

The Nadex fee structure and the commission structure are very simple. If you are opening or closing a position, you will pay $1. If you choose to exercise a contract that is in the money, you’ll be charged $1. Contracts that are out of money will not be charged any fees. Moreover, withdrawals and deposits made through the automated clearinghouse (ACH) are free.

Binary options CommissionsEntry and exit: 1 per contract OTM expiration: 1 per contract OTM expiration_: Free
Call spreads commissionsEntry and exit: 1 per contract Trade expiration : 1 per contract
CommissionsEntry and exit: 1 per contract Trade expiration : 1 per contract
Withdrawals and DepositsGet a wire withdrawal for free via ACH$25
Account SetupNo cost

Use Nadex

To open a Nadex Account, you don’t have to be a 20 year veteran of derivatives markets. However, it is important to understand how these instruments work as well as your personal risk tolerance. Binary options are either winning or losing. There is no middle ground. Nadex is a great platform to help new clients and offers lots of support to help them get on their feet.

  • One platform: This may seem negative to experienced derivatives traders but Nadex works on one browser-based platform. There is no desktop or mobile app. Novice traders will be grateful to know that the person on the other side of a contract doesn’t have any technological advantage.
  • Signing up for a new account is easy: It doesn’t take more than a few minutes to complete online forms or log in through tedious web portals. Nadex offers a quick and easy 5-step process to sign up.
  • Demo account and tutorials: A learning curve is normal when trading complex instruments on a new platform. However, Nadex does not want clients to feel overwhelmed. Anyone who is hesitant about signing up can request a demo account. There are also many tutorials available through the Learning Center.

Nadex Education

This is where Nadex shines. Nadex recognizes that novice traders can find derivative markets confusing and difficult so they have created a comprehensive education suite with tutorials and demos, articles and webinars.

The Learning Center has a wealth of helpful information on how to open an account, get started with the platform, and form strategies for trades. The glossary will simplify the meanings of unfamiliar terms. You can also find everything on the blog, including market news, trading techniques and platform updates.

The webinars are where the real prize lies. They are free and provide in-depth information on complex trading instruments. The topics covered range from basics to current market analysis and potential opportunities.

Customer Support at Nadex

Although there is no contact number for customer service on the main Contact page, existing clients can reach customer support by phone via their accounts. Prospective clients can either email customer service ( or use the chatbot on the Contact page to initiate a conversation.

Nadex Offerings

Nadex offers three types of trading instruments: binary options and knockouts. These are briefly described below:

Binary options: These are Contracts that have only two possible outcomes. They are based on a question like “Will silver’s price rise to $28 by December 2020?” The contract expires when it is not used. You get $100 per share or $0 if the contract is held. Binary options are a result of this either/or outcome.

Call Spreads: Similar to knock-outs and call spreads, you will need to set a ceiling or floor for your initial trade parameters. However, there is no risk of getting knocked out in a call spread trade. If you are looking to maximize profits or minimize your losses, you can either stay in the trade for longer than one week or close it early.

Knockouts: Also called touch brackets, a contract that knocks out a trade allows traders to set a weekly floor and ceiling on their trades. If the ceiling or floor is reached, it will cancel the trade. These ceiling and floor functions almost as a stop-loss order or take-profit order. Knock-outs may also be sold before expiration if either parameter is not reached. However, they only last for a maximum of one week.

Nadex Indices

Nadex clients have the option to purchase contracts for various U.S. and international stock indices. The Dow Jones Industrial Average and the S&P 500 are available in the U.S., as well as NASDAQ, NASDAQ, and Russell 2000. Contracts can be bought for the FTSE 100 and China A50, Nikkei 225, and the German DAX.

Nadex Forex

Forex trading is a major part of the derivatives markets. Nadex lets customers trade 11 forex pairs including major pairs such as USD/EUR and USD/JPY.

Nadex Commodities

Nadex offers traders many different options in commodities via binary options, call spreads, and knock-outs. You can trade precious metals like gold, silver, and copper, as well as energy ( crude oils, natural gases) and agriculture (corn, soybeans).

Nadex Macro

Ever wish you could bet on economic data such as unemployment rates? You can trade U.S. macroeconomic developments using Nadex’s binary options just like commodities or currencies. You can also get contracts for weekly jobless claims, nonfarm payroll numbers and future GDP statistics.

Nadex Mobile App (Not Rated).

Nadex offers a mobile experience, but does not have a traditional app. NadexGO, a mobile app that is progressive, doesn’t need to be downloaded and isn’t available via Google Play or Apple App Store. You will need to open your mobile browser and enter the NadexGO URL in order to access the app. Mobile experience is very similar to desktop experience so rating the mobile app doesn’t make sense. Nadex can be used to trade using tablets or smartphones, but it isn’t a unique experience that adds (or takes away) any value.

Overall rating for Nadex

Nadex, a highly-regulated trading platform that allows sophisticated derivatives to be purchased and sold, is well-regulated. Brightly lit markets are ideal for trading binary options and call spreads. Unfortunately, there is not enough regulatory oversight to deter bad actors. Nadex, an exchange and not a broker, has incentives that are aligned to its clients in order to provide the best trading environment. Although commissions can be expensive, they are easy to understand and Nadex offers a lot of educational content that will inform customers about its policies as well as how to trade instruments such binary options.

The market is legally regulated, but that doesn’t mean everyone should sign up. Nadex’s derivatives are complicated instruments, and novice traders are often given the opportunity to learn from more experienced traders. Binary options trading is extremely risky, according to the CFTC. These are not small bets. When you purchase a binary option, it’s a big investment. If you have never traded binary options, make sure you fully understand the risks and open an account.

Most Frequently Asked Questions

How does Nadex send tax information to IRS?

Nadex will send you the Form 1099B once a year for tax purposes. All earnings are reported to the IRS.

What are the disadvantages of using Nadex

There is no mobile app, only derivatives trading and a $250 minimum deposit.

Is Nadex legal in Indonesia?

NADEX is Indonesia’s only legal binary option broker.

Indra Kenz (continued Binomo binary options affiliate) stated that NADEX was registered with Bappebti. He pointed out in a news article that NADEX is the only binary option that is regulated in Indonesia.