Nadex is a Chicago-based financial exchange company whose specialty is short-term binary options and spreads and Nadex is a subsidiary of London’s IG Group. The company was founded in 2004 and derives its name from, the North American Derivatives Exchange. They are regulated by the Commodity Futures Trading Commission (CFTC). Nadex customers can also trade binaries on stock indices, forex markets, commodities, cryptocurrency and EDRs (economic data reports) such as the consumer spending report issued by the U.S Bureau of Economic Analysis. Nadex provides U.S residents also have a legal available avenue to trade on a CFTC-regulated exchange by trading with Nadex.
Nadex Platform and Services
Aside from the platform and services that Nadex provides to its customers, we will try to provide a definitive breakdown. As A regulated financial exchange Nadex services have to also be kept in good standing as we detail the types of accounts, training and services that they provide. Nadex also provides clients with Nadex Mobile Trader for mobile devices such as smartphones or tablets. These apps are available for download at Google Play Store or Apple’s Store which allows traders to track developments in the financial markets in real time, execute trades, create watch lists and check their account balance.
Nadex offers customers two different types of platform. The Nadex Trader platform and the Nadex Mobile Trader. The Nadex Trader is best described as a web-based trading platform that is user friendly and works with any web browser. The Nadex Trader, provides direct market access (DMA) to traders, ensuring full transparency regarding binary options contracts and their prices. Nadex Trader also includes an advanced charting and various technical indicators as a package. These trading tools may augment the analytical capabilities of Nadex’s trading customers. Additionally, the platform is fully customizable. Nadex Trader can also modify how they view the various functions and data displayed on the platform. Nadex Trader also showcases a high rate of reliability.
Opening a Nadex trading account is amazingly simple. Fill out the online application form with your information. Once completed simply submit the form, the whole process takes approximately 5 minutes. Once your account has been opened, you are ready to trade without it being obligatory. Nadex has also provided its clients with a choice of 3 types of trading accounts:
Individual Accounts for U.S Residents
This is a specific account for U.S residents and addresses the trading compliance requirements under CFTC (Commodity Futures Trading Commission) regulations. The basic information needed is: Permanent U.S Address, Date of Birth, Social Security Number, Copies of documents showing proof of the aforementioned information.
Individual Accounts for International Traders
While the requirements for international traders may be less stringent, the required information is essentially the same. Nadex requires your Permanent Home Address, Date of Birth, National,Identification Number, Copies of documents showing your name, address and date of birth, all preferably in English.
U.S Business Account (Companies or Partnerships)
This last account is slightly more stringent aas you must submit legal documents that indicate you have authorization to act on behalf of the corporate entity. Documents must also be submitted showing proof of status and ownership of the corporate entity. The other documents required to open the business account are: ID of each signatory on the membership form, Nadex Entity Membership Agreement, Unanimous Consent Resolution, W-9 Form. This process can be time consuming if your documents are not in order, but generally straightforward if they are in order.
Nadex Demo Account
A free demo account is also offered by Nadex for potential customers in order to assist them get acclimated to the Nadex trading platform. The demo account is preloaded with $25,000 in virtual cash that is used to make paper trades. Registered traders may also use the demo platform to back test their strategies without risking capital and the demo account is unlimited in its use.
Nadex Funds Withdrawal Policy
- Individual Accounts for U.S Residents– Withdrawal of funds from Nadex are limited to ACH transfer, debit card withdrawals or bank wire transfers for traders.
- International traders– withdrawals can only be made through debit card or through bank wire transfer. Withdrawals usually take 3 to 5 days to process and require a processing fee of $25.
- The withdrawal of funds at Nadex is more strict than offshore based brokers due to requirements imposed by the CFTC. If you need further clarification, feel free to contact Nadex customer support.
Nadex is a rarity among brokers insofar as their dedication to giving their traders a quality education in trading. They provide a wide array of free educational material such as handbooks and webinars that are accessible online to everyone. Nadex also has some premium resources that can only be accessed by registered customers of Nadex. Some of these resources include:
- Detailed Glossary on trading
- Informational Videos
- Trade Examples
- Market Commentary
The Nadex FAQ section provides answers to most commonly asked questions and should be looked at before engaging a customer support specialist for assistance.
As a binary options trading platform, it is quite easy to see why Nadex is thought of as one of the best binary options exchange platforms. Nadex is regulated and you can rest easy knowing your funds are secure. Performance and credibility are two of the most important aspects when choosing a binary options trading platform. Nadex goes the extra mile to make certain you have everything needed to trade profitably.
Lastly, make absolutely sure you are well prepared and informed before you risk money on trading binary options. Trading is volatile arena and you risk losing all of your capital. Finally, having the correct tools of the trade to make profits and is all about survival of the fittest and in the end that is what trading is all about.