Nadex Review 2023 – Everything You Need to Know About This US Binary Options Exchange

Unlike most binary options brokers, Nadex is not some offshore unregulated firm. Owned by London-based IG Group, Nadex is actually a regulated exchange for trading binary options and spreads on forex, commodities, stock indices and events.

But how exactly does Nadex work? And should US traders consider this unique binary options exchange versus competing offshore brokers or other markets like stocks or crypto?

In this Nadex review, we’ll break down everything you need to know including the trading platform, markets available, fees, payouts, regulation, and more. Let’s dive in!

nadex review

Introduction to Nadex

Nadex stands for the North American Derivatives Exchange. It was founded in 2004 and provides US traders with a regulated venue to trade:

  • Binary options with market-based expirations priced between $0-$100 based on probability.
  • Call spreads with defined risk allowing traders to customize risk/reward.

As a CFTC regulated exchange, Nadex offers US traders oversight and accountability not found with unregulated offshore binary brokers.

Nadex Markets and Contract Specifications

Broker offers binary options and call spreads on these underlying markets:

  • Forex pairs like EUR/USD and GBP/JPY
  • Major stock indices like the S&P 500 and Nasdaq 100
  • Commodities like gold and crude oil
  • Bitcoin and other cryptocurrencies
  • Economic events like Nonfarm Payrolls, Fed Funds Rate

Nadex binaries have expirations ranging from 5 minutes to 1 week. Spreads allow customizing floor/ceiling levels and expiry.

All Nadex contracts are priced between $0-$100, with multiples of $1 in-between based on the probability of the binary expiring in the money. This transparent exchange-based pricing is unique versus fixed payouts by offshore brokers.

Nadex Binary Options and Spreads Explained

Here’s a quick rundown of how binaries and spreads work on Nadex:

Binary Options

  • Choose whether contract expires above or below strike target price.
  • Binary is priced between $0-$100 based on probability of expiring in the money.
  • Risk amount chosen when placing order. Profit/loss known upfront.
  • At expiry, settle for $100 if correct, $0 if incorrect.

Call Spreads

  • Trade a price range between a floor and ceiling level.
  • Customize maximum risk, maximum reward, and duration.
  • If price settles between floor and ceiling at expiry, receive max reward.

Broker spreads allow traders to define strategies with limited downside and greater flexibility versus just betting on a simple binary outcome.

Nadex Trading Platforms

Nadex offers secure web-based and mobile trading platforms:

Broker Web Platform

  • Full-featured charting and order placement.
  • Real-time streaming quotes and account balance updates.
  • Customizable layouts and indicators for analysis.

nadex account types

Broker Mobile App

  • Available on iOS and Android.
  • Placing trades seamlessly on the go.
  • Manage orders and positions while away from your desktop.

For active short-term traders, Nadex’s platforms deliver a robust experience. Charts include various technical indicators to supplement order flow trading.

nadex mobile app

Nadex Fees

As an exchange, Nadex charges per-contract trading fees instead of spreads:

  • $0.90 per binary options contract.
  • $0.90 per spread contract for entry. No additional fee to exit.
  • Fees displayed clearly on order ticket before placing trade.

The exchange-based fee model provides cost transparency compared to variable spreads by binary options brokers. Active traders may find lower fees trading higher volumes.

nadex trading fees

Nadex Payouts

How Nadex calculates payouts is unique:

  • Contract prices tied to probabilities between $0 and $100.
  • For example, binary trading at $80 has 80% probability of expiring in the money for $100 payout.
  • Allows precisely defining risk/reward. Capped downside per position.
  • On underlying asset move, contract price adjusts dynamically keeping probabilities fair.

This exchange-based pricing model pays out according to real probability rather than fixed arbitrary payout ratios by brokers.

Opening a Nadex Broker Account

To trade on Nadex you must open an account directly with the exchange. The process includes:

  • Complete application with personal information.
  • Submit proof of identity.
  • Verify residential address.
  • Acknowledge Nadex user agreements.
  • Fund account with initial deposit of at least $250.

As a regulated exchange, Nadex must comply with strict “know your customer” identification procedures. The application process takes 2-3 days total.

Nadex Regulation and Security

Nadex holds user funds in segregated accounts at BMO Harris Bank and Fifth Third Bank. All monies are kept completely separate from company funds per CFTC requirements.

Nadex operates under direct regulatory oversight of the Commodity Futures Trading Commission (CFTC). This ensures transparency, accountability, and stringent reporting standards.

Trading through a regulated US exchange like Nadex provides confidence in market integrity and fund security that unregulated offshore brokers lack.

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Nadex Deposits and Withdrawals

Funding a Nadex account and withdrawing winnings is straightforward:


  • Instantly via debit card or bank transfer.
  • Minimum deposit $100.


  • Processed within 1 business day.
  • Return to payment method used for deposit.
  • $25 fee for wire transfer withdrawals.

As a regulated exchange, Nadex meets high standards getting capital in and out of your trading account safely.

Nadex Customer Support

Nadex traders praise the exchange for high quality customer service through:

  • 24/7 phone support
  • Live chat for quick inquiries
  • Detailed FAQs and documentation
  • Regular educational webinars

Between their regulatory oversight and responsive support teams, Nadex scores very well in the trust and transparency departments.

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Frequently asked questions

Q: Is Nadex a regulated broker?

A: Yes, Nadex is regulated by the Commodities Futures Trading Commission (CFTC) in the United States. It is subject to regulatory oversight to ensure fair and transparent trading.

Q: What are the trading hours for this broker?

A: Nadex trading hours are from Monday through Thursday. The exchange offers trading opportunities during specified time frames to accommodate different market hours and trading preferences.

Q: Can I open an account with Nadex?

A: Yes, you can open an account with Nadex. The process is straightforward and can be done online. You will need to provide some personal information and complete the necessary verification steps.

Q: What is a demo account, and does Nadex offer one?

A: A demo account is a practice account that allows you to trade using virtual funds, without risking your own money. Nadex offers a free demo account that you can use to familiarize yourself with their platform and practice your trading strategies.

Q: What markets can I trade on Nadex?

A: On this broker, you can trade a variety of markets, including forex, commodities, stock indices, and cryptocurrencies. This gives you access to a diverse range of trading opportunities.

Q: Does Broker offer bonuses or promotions?

A: No, Nadex does not offer bonuses or promotions. As a regulated exchange, they adhere to strict guidelines and do not engage in promotional activities that may compromise the integrity of their trading environment.

Q: What are knock-outs?

A: Knock-outs are a type of trading product offered by Nadex. They are short-term binary options contracts that have built-in stop-loss and take-profit levels. This allows traders to manage their risk and potential profit before entering a trade.

Q: Can I trade on Nadex using a mobile device?

A: Yes, Nadex provides a mobile trading platform called NadexGO. It is available for both iOS and Android devices, allowing you to trade on the go and stay connected to the markets.

Q: Does Broker offer free trading education?

A: Yes, Nadex offers extensive educational content for traders of all levels. Their educational resources include video tutorials, webinars, trading examples, and articles that cover various trading topics and strategies.

In summary, Nadex merits consideration for US traders interested in short-term trading in an accountable exchange environment:


  • Regulated US exchange with oversight and transparency.
  • Limited risk per position and clear pricing.
  • Robust web and mobile trading platforms.
  • Low fees compared to similar products.
  • Responsive customer service.


  • Contract variety not as extensive as some brokers.
  • Funding and compliance procedures slightly stricter.

While the market depth lags major brokers, Nadex succeeds in providing a well-regulated venue for US traders to speculate on short-term market moves using binaries and call spreads. The pricing models and risk parameters allow crafting intricate strategies.

For traders who value exchange-based execution and fund security over a massive asset selection, Nadex warrants consideration. Just be sure to practice sound risk management as with any leveraged market.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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