These days, there’s a fine line between binary options scams and binary brokers that simply don’t make the grade for any given reason. Realistically, there’s no reason why you’d want to do business with either! With such an extensive number of top quality binary brokers getting things done properly, there’s really nothing to gain from working with those to the contrary. Even when it comes to those that are almost great but not quite there, the same applies.
So what’s the story with NADEX? A broker worthy of your time and money, or would you be better off elsewhere?
Well, the truth of the matter as per our investigation is that NADEX slots comfortably into the bracket of OK, but far from the best. So while there are some positives to say about what’s on offer, you could be much better off financially making investments elsewhere with more supreme and high ranked brokers.
Scam Overview: Based on our investigation, we cannot recommend NADEX as a broker to our traders. First of all, it’s more geared towards US residents, and gives them more priority and deposit options. Moreover, the EU trading platforms seem much more advanced in available tools, signals and educational materials to help traders succeed. NADEX may not be a scam, but we don’t find it suitable for traders located outside of the US.
NADEX Trading Platform
There’s one very specific thing about NADEX that makes it both unique BUT, it’s only a more appealing choice for a certain group of traders. Quite simple, NADEX is right now the only binary options trading platform that is legit for traders in the United States. There may be a number of sites and services that claim to accept traders from the US, but NADEX is the only one that’s CFTC regulated and permitted to take customers based in North America.
In their own words:
“NADEX is the first and largest US-based exchange that offers a limited risk, low cost, and legal way to trade binary options and spreads. Your funds are secure in top US banks, not offshore. NADEX is regulated and transparent and gives individual traders like you a level playing field.”
Actually, there’s one misconception about NADEX we feel that is necessary to clear up. To call NADEX a binary options trading platform is somewhat inaccurate, as they’re actually more of an exchange. Given the way in which they serve as a facilitator of trades rather than a broker in the classic way, it is to a certain extent impossible for them to use the usual scam tactics to con customers out of money. It doesn’t happen because it cannot happen – it really is as simple as that.
So that’s one of the most important boxes ticked right off the bat – working with NADEX is technically safe for US residents. In terms of markets, the company claims to take pride in offering a ‘huge’ selection of binary trading markets, covering commodities, Forex, economic events and more. One of the things that we found disappointing were the no trade signals on the platform. It’s rather odd that many EU regulated brokers we’ve ranked had them yet NADEX does not offer such a service. For this reason, NADEX may not be suitable for those looking for that extra help in predicting market trends.
“I have open account with Nadex and deposit $500 and trade forex option a few time . I was monitor Nadex live market price with 3 other forex live market price . It seem to me that Nadex live market price was no true , it was off 1 minute with other live market price . So I request an withdrawal of remanding balance. And request to cancel my account.” – Dan Danh
If you ask us though, somewhere in the region of 10 currency pairs, 7 commodities and 8 stocks represent the exact polar opposite of huge. If anything, it’s rather poor. Another slight downside that’s immediately noticeable is the way in which the NADEX platform doesn’t come across as nearly as sophisticated as traders from Europe and the UK may be used to.
NADEX Trading – Problem For The Rest of Us
Given the fact that this is a site and service created primarily for US customers, it’s rather odd that both the platform and the customer support service are only available in English. It doesn’t take much these days to take a binary options website and have it transformed into any number of important international languages – the fact that NADEX hasn’t done this is both strange and a bit of a shame.
There’s also the way in which the customer service team is only available during standard US trading hours, too. Again, this isn’t quite up to par with the usual 24/7 customer service that’s expected as standard with most household names in binary trading. After all, just because the day’s trading has come to an end doesn’t mean you might not have a LOT of questions regarding your account…or anything else, for that matter.
NADEX Deposit & Withdrawal
Getting started with NADEX means depositing the minimum $250 to get up and running, though we did find that NADEX does offer a fully functional demo account. But just for forewarning, a demo account doesn’t always mean that you’ll perform the same with the broker’s real trading platform. Many times, binary brokers that have something up their sleeves, try to entice new traders with free accounts and free ‘money.’ We’re not saying that NADEX is being a fraud by offering a free account, but since were not located in the US, we cannot be one of their customers.
NADEX offers the traditional welcome bonuses, but in the form of ‘Free Trading Days’ in accordance with how much you deposit. $500, $1,000, $3,000, $5,000 and $10,000 will earn you 2, 4, 6, 8 or 10 free trading days respectively. Not that this means free money of any kind to trade with – it simply means you won’t pay for the trades you make.
Speaking of which, as an exchange rather than a classic broker, this is how NADEX makes its money. Every trade is subject to standard charges of 90cents per lot, up to a maximum of $9 per trade. There are no exit fees if the trade is unsuccessful and you get to keep all the profits you make. Which is all great – aside from the fact that fees and charges are payable on the vast majority of withdrawals, not to mention quite a few deposits to boot.
Whether or not this is a deal-breaker is a matter of personal opinion, but those that have become used to free deposits and withdrawals probably won’t be too happy about having to pay.
Is NADEX a Legit Broker?
While it’s not strictly illegal for US traders to do business with international brokers, it’s a practice that comes advise against by the CTFC:
“Because of their lack of compliance with applicable laws, if you purchase binary options offered by persons or entities that are not registered with or subject to the oversight of a U.S. regulator, you may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.”
The basic difference, therefore, being that if investors trade with NADEX and it all goes south, they’re in a much better position to do something about it. NADEX has been around in one form or another since 2007 and is no newcomer to the industry. But what’s even more reassuring is the way in which the vast majority of customer reviews seem to paint a positive picture of what’s on offer from NADEX. Or at least, this is the case when it comes to US traders…those from other parts of the world being advised to consider their options carefully.
The Final Verdict
So putting all the pieces together, what’s the final verdict on NADEX? To be honest, it’s a bit of a mixed bag as while it’s hard to say anything too negative about them, it’s also not possible to give them a 100% recommendation. That is, unless you’re based in the US and want to do things as legit as possible.
The biggest selling point for NADEX is the fact that it is currently the only exchange of its kind in business that is regulated and licensed to operate in the United States for US customers. Other brokers may accept US customers, but in most instances they really shouldn’t. So it’s great for US traders, but for anyone else outside the US, perhaps not quite so much.
Why? Well, because when it comes to things like the sophistication of the site, the asset library, the deposit/withdrawal fee structure, customer service, trading instruments and more, market-leading brokers in the UK and Europe bring far more to the table. It’s not a case of what NADEX is doing wrong, but more a case of what others are doing better. But it does at least go without saying that NADEX is not a scam broker and makes a safe choice for those in the US looking to get things done by the book. If you are interested to trade binary options anywhere outside of the USA, your best option is to sign-up with a reputable, EU regulated broker.
- Legit For US Customers
- Mobile App Available
- Free Demo
- Platform Seems Too Basic
- Fees Attached To Deposits & Withdrawals
- English The Only Supported Language
- No Trading Signals Offered
- Very Limited Asset Library