Nadex Broker Review

Forexindicators does not recommend Nadex. To see our recommended brokers click here.
Minimum Deposit
US Traders

Founded in 2004 as Hedgestreet, Chicago, Illinois based Nadex began as an electronic derivatives market for retail investors. The company was the first Internet based exchange, which offered trading in derivatives and event futures.

Hedgestreet closed its operations in 2007 and was subsequently purchased by UK based IG Group Holdings for $6 million. IG Group Holdings is a public company with stock traded on the London Stock Exchange and a component of the FTSE 250, that specializes in CFD trading and financial spread betting.

Hedgestreet rebranded in 2009 as the North American Derivatives Exchange or Nadex and is presently focused on providing services to traders as an online binary options exchange. Nadex offers a novel trading opportunity in financial events, as well as binaries and spreads, which can be traded on multiple markets, including forex, stock indexes and commodities.

A screenshot of the Nadex’s homepage at can be seen below:

Nadex Homepage Screenshot


Nadex features a large selection of markets in which traders can establish binary option trading positions to take advantage of short-term price movements. Nadex offers more than 5,000 hourly, daily and weekly binary option contracts that trade six days a week, 23 hours a day.

The company’s two proprietary trading platforms mesh seamlessly and allow traders to take positions in stock indexes, forex, commodities and economic events. Trading across multiple markets and using spreads can be advantageous to an experienced trader.

Also, Nadex’s economic event contracts let you trade the actual number being released, instead of the reaction of an asset or futures contract, such as a currency pair or spot gold. Nadex economic events binaries include U.S. Non-Farm Payrolls, U.S. Weekly Initial Jobless Claims and the Fed Funds Rate Decision.

While Nadex claims it does not charge “commissions”, trading fees are in fact charged on both sides of the market, one to open and one to close. Fees are $1 per contract per side, capped at $50 for one to fifty contracts, with no additional fees for 51 contracts and higher. On the settlement date, if the option is in the money, a $1 fee is charged per contract with no 50-contract limit, but if the option is out of the money, no fee is charged.


Nadex offers four different account types: The Individual Account for U.S. residents, the Individual Account International, the Business Account and the Permanent Demo Account.

Individual Account (U.S.) – an account specifically for people residing in the United States. This account does not need to be funded and can be opened by anyone that provides a permanent U.S. residential address, a birth date, and a Social Security number or other visa information.

Individual Account (International) – also free to open, the International Individual Account requires proof of a permanent residential address, a birth date and a National Identification or Social Security number of the signatory. Due to regulatory considerations, not all countries qualify for Individual Accounts. Below is a list of the countries that qualify for Individual International Accounts:

  •     Australia
  •      Austria
  •      Belgium
  •      Brazil
  •      Cyprus
  •      Czech Republic
  •      Denmark
  •      Estonia
  •      Finland
  •      France
  •      Germany
  •      Gibraltar
  •      Greece
  •      Guernsey
  •      Hong Kong
  •      Hungary
  •      Iceland
  •      India
  •      Ireland
  •      Isle of Man
  •      Israel
  •      Italy
  •      Japan
  •      Jersey
  •      Liechtenstein
  •      Lithuania
  •      Luxembourg
  •      Malaysia
  •      Malta
  •      Netherlands
  •      New Zealand
  •      Norway
  •      Poland
  •      Portugal
  •      Singapore
  •      Slovakia
  •      Slovenia
  •      South Africa
  •      South Korea
  •      Spain
  •      Sweden
  •      Switzerland
  •      United Kingdom

Business Account – this account is designed for LLCs, Trusts, Partnerships and Corporation Accounts based in the United States. To open a Business Account, the business must present documentation verifying its ownership and authorization to engage in derivatives and binary options trading offered by Nadex.

Other documents required for this type of account includes a W-9 Form, a Unanimous Consent Resolution, a Nadex Entity Membership Agreement and valid government identification for each of the signatories on the account application. Additional documentation is required depending on whether the account is for a Trust, an LLC or Partnership and a Corporation.

Permanent Demo Account – Nadex offers a free unlimited time demo account. The account includes $25,000 of virtual funds, and it lets you try out the Nadex trading platform and test different trading strategies without committing any funds.


For U.S residents, funds can be deposited into their trading account through a debit card, an ACH Bank Transfer, a Wire Transfer or with a paper check. Non-U.S. residents can deposit funds from a debit card, their checking account or an international bank wire transfer.  Electronic fund transfers are presently not supported.

Withdrawals for U.S. residents can be made to a debit card, through an ACH withdrawal or via a wire transfer. International clients can withdraw funds to a debit card or through an international bank transfer. A wire withdrawal costs $25, with no charge for account setup, electronic check setup, deposits, or electronic withdrawals.


Nadex offers its clients a web-based trading platform and a mobile app that work together seamlessly and are specifically designed for touch screens. Nadex’s full-featured mobile apps can be downloaded for iPhone, iPad and Android and come with charting and technical indicators.

The web-based platform requires no software download and features the company’s unique price ladder charts. The ladder chart lets the trader select a market, analyze the chart and other indicators, and place the order directly from the chart screen. The web platform runs on just about any modern computer with an updated browser and a fast Internet connection.

A screenshot of Nadex’s trading platform appears below. The image depicts options expirations for the S&P 500 contracts, a chart of the index, and the order entry box on the right.

Nadex Trading Platform Screenshot

Traders who wish to use MetaTrader4 to trade currencies will probably be disappointed that Nadex does not support it.


Nadex offers email and telephone customer support from 11:00 AM EST on Sunday until 5:00 PM EST Friday. The company has a toll-free number in the United States, but International callers must dial the Chicago number direct.


Nadex’s Learning Center offers educational courses in binary options, trading strategies and spreads. The company broadcasts approximately two webinars a week, and clients also have access to its webinar archives, trade examples, educational videos, handbooks and a trading glossary.


Nadex is registered with the United States Commodities Futures Trading Commission, a U.S. government agency that oversees futures, options and swap trading. The CFTC considers the company a Designated Contract Market and Derivatives Clearing Organization, and Nadex is one of the few online binary option brokers that will accept clients based in the United States.


Nadex’s CFTC designation as a registered Exchange and Clearing House ensures that the company matches buyers and seller and does not participate in trading. Member funds are held in segregated accounts at top-tier U.S. banks, ensuring customer’s funds safety.

Because of strict regulatory requirements in the United States, small retail traders have been limited in their trading capabilities. Nadex gives these traders the opportunity to trade binaries on assets that they could not otherwise trade.

Add to this the company’s interest in their client’s market education, holding weekly webinars and a wealth of educational material. If you are looking for a top tier binary options broker, then Nadex is a candidate to consider.

Nevertheless, Nadex would not be a good choice for a trader that wants to use MetaTrader4 to trade currencies or who wishes to make deposits and withdrawals via an electronic payment service like PayPal, since neither is supported. Also, trading fees are involved when trades are initiated and closed out.

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Forexindicators does not recommend Nadex. To see our recommended brokers click here.