North American Derivatives Exchange Inc. or Nadex is one of the most respected brokerage firms when it comes to binary options and spread trading.
They have built a name for themselves over the years when it comes to binary options and spread trading; they have been the go-to broker for these two services that are not widely offered in the United States.
Nadex Forex Trading Review
Nadex is based in Chicago, Illinois and it is regulated by the Commodities Futures Trading Commission, which is one of the toughest regulatory commissions in the world.
That means that the clients can be relaxed because Nadex will always be accountable for their actions. In addition to satisfying their reliability, they have also built a reputation for themselves by having a strong management team.
All the team members have extensive experience in the financial industry, and they all have an average of ten years experience among them which is very impressive, and that simply adds to the fact that they are a professional company that offers professional services to their clients.
They also have their client’s funds segregated in major United States banks to protect their clients from any inconveniences that may arise in case anything happened to the company.
It is very important to know the affiliations it has, it is the North American branch of the IG Group that is listed in the FTSE 250, and it is has a market capitalization of $3.5 billion.
This goes to show that Nadex has some serious liquidity backing on its side and that is always an important aspect for any broker or company offering financial services.
They have a massive number of instruments on offer both for binary options trading and spread trading. They have stocks, commodities, indices, forex, economic events, and Bitcoin.
The economic events that are traded are; the Federal Reserve rate decisions, Nonfarm payroll, and the weekly jobless claims, the Bitcoin that is traded is actually a derivative of the underlying Bitcoin asset.
With that understood then it is important to know that they have 5000 hourly, daily, and weekly contracts available for trading for 6 days a week for 23 hours a day.
This gives the client a wide range of choice when deciding on what to trade; the client will not have a problem when searching for contracts rather the trader may end up having a hard time choosing which contract favors them.
Nadex Forex Trading is one of the most affordable brokers to work with, their minimum deposit amount to open an account with Nadex is $100. So, there is no way one can say that trading is inaccessible with such low margin requirements everyone can try his or her hand on trading with Nadex.
They also have very affordable contract fees per side of the trade taken, they cost as low as $0.90, and the maximum is capped at $9 which can help a stretch but that is on the least traded contracts that will obviously attract the massive fees, but for the frequently traded contracts then you have a good chance of paying low fees.
They have a bonus program where as a new trader you get free trading days when you open an account with them, and you do not pay fees transactional fees after your first 10 traded contracts.
Nadex: Review of Their Investment Products
Nadex has two precise investment products that are open for their clients; the binary options and the spreads. These are not new investment products, but they are some of the most misconstrued products in the market.
Many traders do not know what spreads are or what binary options are and that us the first step towards understanding what binary options and spreads are.
Binary options are simply trades that are based on making a decision whether the price will go up or down and within what time will price most probably move to either of those levels.
If your trade goes your way you are in the money or in profits but if your trade goes against you then you are going to lose the amount of money placed on the trade that ranges from $0-$100 as per Nadex binary options.
Spreads are a little different; spread trading has one of the best advantages to any trader who wishes to hedge their positions.
When you open a spread trade, you define a range you are trading in; the floor that is the lowest the trade can go to, and the ceiling which is basically your profit target.
The most important thing about spreads is that you can have an off entry when it comes to timing, but that will not affect your loss potential as long as your floor isn’t touched.
This is mainly important for the traders who do not want to be studs picking the tops and bottoms of markets rather they want to have room to see where the market is likely to move towards.
With the peace of mind, you can have more confidence entering a much larger position when the market gives you the direction. The other important thing is that you can be bullish or bearish when trading spreads.
Nadex Trading Platform
Nadex has one of the best trading platforms in the industry, and it is also free, the only thing their clients pay for is the trading transactions, but they do not pay for market data.
The trading platform is accessible on various operating systems, and all you need is your username and password, and you can trade, and the one unique aspect is that you can manage your trades from your mobile device after placing them on your PC or tablet.
The same features in your PC such as charting, indicators, and charting tools are also available on your mobile platform. The platform offers Market Order Protection, in that you can enter the market but you will always get an acceptable fill for your trades.
They also offer a $25,000 demo account for your practice but the same market conditions and order execution is available to you as those in live accounts.