This is the only US regulated binary options broker. So I had to make this Nadex review. I will also collect all the complaints from the whole internet and I will present them below. You can leave your review and your Nadex complaints at the end of the post.
Nadex complaints by real customers
In researching complaints about NADEX I found that many people were upset that the service offered is so different from what most European (EU/CYSEC) binary brokers offer.
You will not find many Nadex bad reviews. I collected complaints from forums, from Reddit, websites and youtube comments.
But I also decided to test it out for myself so that I could write an accurate review based on my own personal experience.
The complaints you hear about most are as follows:
Require Identity Verification
Once I opened my NADEX account, I discovered that I couldn’t do any trading until they verified my identity.
This is fairly standard in the US, especially after 9/11. In this day and age, businesses in the US that provide direct financial services require a valid ID of all clients before they are allowed to make trades.
But, if you are signing up with an unregulated broker or one in the UK you are not necessarily going to be asked to verify your identity before doing any trades.
I would honestly prefer not giving out all of my personal information. There is just too much identity theft and fraud going on, which means you have to be doubly careful when you’re dealing with an unregulated broker.
However, because the Commodities Futures Trading Commission (CFTC) regulates NADEX I wasn’t terribly concerned about my identity being stolen. CFTC ensures that the identities of those using financial services companies they regulate are completely protected.
Support Does Not Extend Worldwide
Binary brokers in the EU are known for welcoming people from most parts of the world. They often support client accounts from 150 or more different countries.
I found that NADEX does support accounts from the US, which is something most EU binary brokers do not offer. But, NADEX does not offer the extended worldwide support that international EU brokers typically do.
So, it is up to you to find out in advance whether NADEX offers support in your country before spending a lot of time looking into the type of service it is.
I found that the trading platform that NADEX has set up is quite different than the typical trading platforms used by most EU brokers.
However, once I took the time learn how it all worked, I found that it was very easy to navigate. Before long the NADEX platform had become just as easy for me to navigate as the standard trading platforms I’d used in the past.
Limited Number of Services
Although NADEX offers many different contracts to trade, their service offerings are quite basic. They pride themselves on keeping it simple. When using NADEX to trade binaries, you are given just two options, buy or sell.
A lot of people like that they offer a very basic service, but others would prefer being offered the range of choices that EU brokers typically provide.
This is very understandable. On the other hand, you have to remember that NADEX is not a broker. It is only an exchange.
NADEX has only one job, which is to facilitate a direct connection between buyers and sellers, whereas EU brokers offer a whole range of diversified services. For most of these services the EU broker will automatically assume the opposing position from the client’s to get the trade to go live.
At first glance, this might seem commendable.
But, on closer examination, this does not bode well for clients. Face it; brokers are in it for the money. When they make it a practice to bet against their clients, why wouldn’t they do everything in their power to game the system to their advantage?
NADEX does not position itself in opposition to its clients, which by the way is not only unethical it’s unlawful. The bottom line is that NADEX cannot legally offer more services until there is adequate demand on both sides for each service it adds to make it sustainable.
I totally understand this complaint. The average EU broker will have more than 100 assets, whereas NADEX has fewer than 35. The reason for this is explained above in “Limited Number of Services.”
Therefore, it’s up to you to determine whether NADEX has the assets you’re interested in trading before you come onboard. All you need to do is look on their website or open a permanent demo account, which would be free.
What I found though is that NADEX’s list of assets does continue to grow.
Too Few Methods of Payment
NADEX offers very few options for making payments and withdrawals, especially if you happen to be a non-US resident.
Non-US residents are offered multiple payment methods when trading through EU brokers. These include using standard payment processors. They also take e-currencies such as Perfect Money, Webmoney, Payza, Qiwi, and Skrill etc.
However, NADEX allows US residents to make deposits with cards, paper checks, wire transfers and ACH bank transfers only. They can withdraw their funds via cards, wire transfers and ACH bank transfers.
The only payment and withdrawal methods available to non-US residents are via cards and wire transfers, which I admit is quite limited.
Some last examples of negative comments
“I’ve been trading nadex on and off for awhile. i haven’t been successful and lost hundreds of dollars. cant say it’s their fault but one thing that bothers me is i asked for a reload on a demo account and they told me it would take 2 business days. that is the biggest croc of sh** I ever heard of. Take hundreds of real dollars at any time but a reload on a demo takes 2 business days???”
“I played about a week with their system of trading and figured out that they need much faster execution system for 5 min forex binary options trading. It takes almost 20 to 30 sec. to get an execution for market or limit order if it fills but if it is not then i have to spend another 10 or 15 sec to do another order… which means it takes about 1 min to do all… and as you know, the market will not wait for me to get in with my price range that I like cuz it is a fast moving market….
and he continues : “often times, i could not get a right price that i wanted to get in with… so end up losing pretty much every trade. Yah, for hourly and daily or weekly, I don’t think the time matters for execution but for short period trading, every sec means very important cuz your profit will be in lost every sec.”
No Complaints of Shady Transactions
There are no fraud complaints against NADEX or clients accusing them of scamming people or messing with withdrawals. NADEX operates under very strict CFTC regulations and conducts itself according to the law by following all the rules and regulations.
CFTC takes all allegations of fraud very seriously. If they get such a report, they investigate it thoroughly. If any such report were proven to be true, CFTC and the government would impose very severe penalties.
My Thoughts on These Common Complaints
Reality is such that no business, and certainly no exchange or broker, is going to please everyone. I agree that NADEX offers very limited worldwide support and compared to EU brokers, has a limited number of assets.
At the same time, NADEX is, in my opinion, the most transparent and secure exchange/brokerage service for trading binary options available today.
It doesn’t take hiring a private investigator to determine whether your broker is working against you by taking the opposite position or if they’re gaming the system so you’ll lose, which allows them to profit.
I like the fact that NADEX makes their fees by just putting buyers in direct contact with sellers. CFTC is a highly respected US regulatory body under which NADEX operates. This should assure you that they are under constant scrutiny to do exactly what they’re required to do and no more.
If you suspect something is being handled wrong, file a complaint with CFTC and you can be sure your concerns will be very thoroughly investigated.
There are a number of protective measures in place to keep you from being defrauded or scammed in any way, which are as follows:
1. Funds Held in Segregated Accounts
NADEX holds each member’s funds in a segregated account at reputable US banks. Accounts are deposited with Fifth Third Bank and BMO Harris Bank to keep your funds secure, no matter how small the amount.
2. In Good Standing with Better Business Bureau (BBB)
In researching this myself, I found that the three complaints on file with the BBB had all been resolved to the clients’ satisfaction. That says a lot.
3. Regulated by Commodities Futures Trading Commission
CFTC exercises its regulatory authority very aggressively by enacting very stringent rules and regulations. These are in place to maintain ethical trading and keep clients’ funds secure.
NADEX clearly values its exchange license and this is incentive enough to abide by all the rules and regulations set forth by CFTC.
4. Civil Lawsuit as Last Resort
In addition to the aforementioned protections, you always have the option of filing a civil lawsuit if you believe you have been scammed, defrauded or treated badly in some regard. NADEX has its corporate headquarters in Chicago, IL and is subject to state and federal laws.
For all US clients, this is important. NADEX is not among the many offshore brokers located in a remote region of the world that you would have difficulty taking legal action against.
Introduction of the review
Nadex is a reputable binary options broker offering binary options trading services to a U.S. clientele. It is a brand name for North American Derivative Exchange, Inc.; a financial outfit domiciled in Chicago.
The owner of the company is the IG Group. It is located in 311 South Wacker Drive in Chicago.
Nadex Regulation – Is it legal in the US?
To be able to offer binary options to Americans, Nadex is fully regulated by CFTC. As a matter of fact, it is the only binary options broker licensed to offer binary options In U.S.
Here is an example of a relevant comment: “Probably one of the only legit binary brokers that even exist, If you want to gamble on the markets thats one thing. But do yourself a favor don’t gamble with a “broker” running with your cash. With nadex offering REAL options, there is NO reason to even attempt to use other “brokers” . I feel with nadex your deposit are safe and you can focus on your trades, instead of worrying you’ve been had.”
Here is the official presentation of the trading company on youtube.
Trading platform review, minimum trade
After creating my account, to write this Nadex review, I was able to access the trading platform after a few clicks. This company offers a powerful trading platform which has fast trade execution times. With the online platform, I was not required to make any download.
However, I was also offered an alternative; a downloadable and intuitive trading platform over which I could trade binary options and forex at the same time. Even better, I could trade using my iPhone via a mobile app. I understand they also have an Android app.
Binary options Trading assets & expiry times
Nadex offered me an acceptable range of trading assets. I had to choose from a bunch of currencies, commodities, a variety of indices, and several global stocks. Unfortunately, the platform offers limited options types. As a matter of fact, they only offer a hybrid Call/Put Option.
Also on the downside, they don’t offer a vast selection of expiry times. For example, they don’t offer short term trading.This is the first negative in this Nadex review. Other brokers, like HighLow markets trading platform, offer many more. That is, they don’t offer short expiry durations such as 60 seconds and I was forced to open longer trading positions-mostly from a day to a week.
Below there is a nice series of screenshots I found from this website about the nadex trading platform.
Trading at Nadex is as profitable as it is exciting. They offer competitive payout rates for in the money trades which can be as high as 95%. Interestingly, I was allowed to close early in some instances, either to cut my losses or to keep a fraction of the profits before a trade contract expires.
Here is a 30-min long tour of the trading platform. If you don’t have the time to watch just continue with my review that includes the most important things.
Nadex strategies and signals and robot review
The trading company offers a learning center with webinars and trading examples that you can watch. This way you can adapt to its platform more easily. You do not any specific strategies to trade on this broker.
Nadex does not offer signals and no serious broker does. However, you can take a look at my signals review page and see what is the best for you.
I will soon make a robots review so stay tuned! You can subscribe to my social accounts or the newsletter at the end of this review. But, from a basic search I made, there is no robot that works with the specific trading platform.
Withdrawal and Deposit review
I was offered numerous deposit methods from the outset. For instance, I could have sent a paper check, initiated a wire transfer, or ACH but I settled on using my debit card.
The minimum amount that you can deposit is $250. On the other hand, my withdrawal options were limited to a bank transfer or via a debit card.
There are many comments like this one on the web: “Ive been trading on Nadex for years. They are a solid exchange not a scammy bucketshop broker. I have zero issues with deposits or withdrawals for getting trades filled.”
Unlike most brokers that I have used in the past, this one charges fees on open positions, albeit small and restricted to “in the money” trades.
How much does it cost to use Nadex:
A trading contract attracts a $1 fee. An additional $1 fee, known as the settlement fee, also applies if the trade ends in-the-money. Other fees that may apply include withdrawal fees for wire transfers capped at $25.
You can also find some Nadex reviews on youtube but it is difficult to separate the good from the bad.
Nadex Demo account review
After I opened and funded a live account, they gifted me with a demo account preloaded with virtual $25,000. The demo account doesn’t come with time constraints and you can always access it as long as you have an account with them. Some other brokers offer a demo account without requiring a real account, like the HighLow demo. Please do not forget to leave your own Nadex customer reviews at the end.
You can find the Nadex login page here.
Currently,the trading company does not have a running promotion or a deposit bonus.
As mentioned earlier, this is the only broker which can legally accept US traders. This was the main reason for this Nadex review.
Nadex Mobile trading Apps review
Nadex has a top-of the line mobile app which you can download from Google Play or App Store. The mobile app is fully functional- you can open and close trade positions as well as use the demo platform. Its mobile app allows you to react to vital market information while on the go or holed up in a meeting.
Is Nadex safe or Scam?
Gauging from my experience, Nadex is as safe as they come.
I successfully made a few sizeable withdrawals over a period of one month. I can conclude that the broker is reliable. Their customer support is also top notch.
Nadex review Summary & Your reviews
- Demo trading is available
- Fully licensed by CFTC (US commission - which means really really safe and not a scam )
- Responsive customer support
- A limited number of assets
- Trading fees
- Few methods of deposit/withdrawal
Be the first to leave a review.
If you liked my review of the Nadex digital options broker consider reading my other reviews. Please leave your complaints or your review of the service above! Thanks!