Nadex Review – Scam or Legit? Truth Exposed!

Nadex, headquartered in Chicago, is a well-known contract exchange specializing in binary options, knock-out and call spreads. Nadex is regulated by the Commodity Futures Trading Commission (CFTC), which gives derivatives traders peace of mind. 

In 2004, then called HedgeStreet, the exchange officially began operations. The plan at the time was to create an online exchange where ordinary investors could trade financial derivatives. However, in 2007 the doors of HedgeStreet were closed for good.

After being acquired by IG Group Holdings Plc from the United Kingdom in 2009, HedgeStreet was renamed Nadex (short for “North American Derivatives Exchange”) and equipped with state-of-the-art trading tools.

If you are not familiar with binary options exchanges in the United States, the company’s claim that it is “the preeminent U.S. binary options exchange” may sound like an exaggeration.

But is Nadex really the best exchange for your needs? This in-depth analysis will provide you with the answers to these questions.

Nadex Summary

Nadex is a trading exchange that offers its users numerous advantages, including full regulation by the CFTC, segregated accounts for client funds at U.S.-based banks, no conflicts of interest as it operates as an exchange and not a broker, a straightforward fee structure, extensive educational resources, and a free demo account with a virtual balance of $25,000.

Therefore, it is generally a good choice for short-term traders looking for a well-regulated US exchange for binary options trading and spreads. However, the company falls short when it comes to mobile trading as it does not provide its clients with a dedicated mobile app. 

Moreover, an initial investment of $250 is required.

Recommendation: Here’s The Best Alternative

Nadex Compared

It is a smart idea to compare one broker or exchange with the others in its field. The following table gives you a quick overview of Nadex compared to some of its strongest competitors:

Platform Pocket Option IQ Option Nadex
Minimum Deposit $50 $10 $250
Maximum Payout %128 91% 100%
Underlying Assets 100+ N/A N/A
USA Accepted Yes No Yes
Demo Account Yes Yes Yes
Platforms Web, Windows, Android, iOS Web, Windows, MacOS, Android, iOS Web, Android, iOS

Offering of Investments

The three trading products offered by Nadex are binary options, knock-outs and call spreads. Here is a brief overview of what each product means:

  1. The question “Will the price of gold per gram rise above $58 by January 2022?” is an example of a binary option, a type of option contract with only two possible outcomes. After the contract’s expiration date, you either receive nothing (if the contract is OTM) or $100 per share (if it is ITM), depending on how long you hold the contract. The word “binary option” comes from the fact that the outcome can only be yes or no.
  2. Knock-out contracts (also known as “touch brackets”) require traders to set weekly limits on their trades, when reached the trade is “knocked out” Knock-outs can be compared to a stop-loss or take-profit order. If neither condition is met, you have the option to hold your knockouts until expiration or sell them early for a maximum of one week.
  3. Nadex offers a special service in the form of call spreads. These are available for a variety of markets, including commodities, stock index futures, and foreign exchange. These spreads may look complicated, but they are actually quite simple to understand. To initiate a trade with a call spread, you need to set a target price and a stop-loss price (just like with knock-outs). In contrast, a call spread does not expose its owner to the possibility of a market disruption. The trade can be held for more than a week, or it can be closed early to take profits or limit losses.

Recommendation: Here’s The Best Alternative

Commission and Fees

Nadex’s commission and fee structure is easy to use. Opening or closing a position as well as exercising a profitable contract will cost you $1 in fees each. If an unpaid contract expires, there is no penalty.

Also, you do not have to set up a Nadex account and there are no fees for deposits or withdrawals through an automated clearing house (ACH).

The commissions and fees charged by Nadex can be found in the following table.

Account opening Free
Deposits and withdrawal Free via ACH$25 per wire withdrawal
Minimum deposit The initial deposit is $250 and the minimum incremental deposit is $100
Inactivity fee $10 per month after one year of inactivity
Binary options Entry or exit: $1 per contractITM trade expiration: $1 per contractOTM trade expiration: Free
Call spreads Entry or exit: $1 per contractTrade expiration: $1 per contract
Knock-outs Entry or exit: $1 per contractTrade expiration: $1 per contract


Nadex’s spreads offer traders significant leverage advantages. The cost is low, the process is simple and the leverage is substantial.

Spot FX traders in the U.S. typically have access to leverage of no more than 50:1. Nadex spreads do not require margin because they are fully collateralized. They should be considered more of a leveraged trading instrument for short periods of time. 

However, trading Nadex spreads can often be cheaper than trading the underlying market directly. Given the low effort involved, the potential return is high and the risk is relatively low.

With Nadex, you can limit your risk to an acceptable level. If you get out of a losing position early, you can limit the damage. In addition, you can withdraw your spread income at any time before it matures.

Account Opening and Types

An account with Nadex can be set up with minimal effort. The available account types of the broker are as follows:

  • Standard trading account (for binary options, knock-outs, and call spreads)
  • Business trading account
  • Free demo account 

For traders interested in adhering to Islamic principles, Nadex does not offer the option to open an Islamic account.

The following information is required to open a trading account with Nadex.

  • Date of birth
  • Permanent residential address
  • Social Security Number or National Identification Number

Nadex Mobile App Experience

Although Nadex offers a mobile website, there is no dedicated app for use on smartphones. NadexGO is an advanced mobile app, so it is not found in the Google Play or Apple app stores and does not need to be downloaded.

To access the app, simply go to the NadexGO URL in your mobile web browser. Nadex allows mobile trading from devices such as smartphones and tablets. 

However, it does not offer anything new or innovative to the system. Trading on a mobile device is essentially indistinguishable from trading on a desktop.

The lack of a true mobile trading app at Nadex is a major drawback compared to brokers that have such apps in addition to traditional desktop versions of their trading platforms.

If you are not near a computer, you can still trade online using a “mobile trading app” This allows you to monitor and control your investment accounts from any location if all you have is a web browser and an internet connection.

Recommendation: Here’s The Best Alternative

Desktop Trading Experience

As long as you have a web browser and internet access, you can trade at Nadex using the free desktop trading interface. To see if this platform is right for you, you can sign up for a free demo account that starts with a virtual amount of $25,000.

You can open a Nadex account and deposit money into it by using a debit card, bank transfer, ACH or paper check (clients outside the US can use an international bank transfer or debit card).

Trading on this platform is a breeze thanks to its clean interface, clear layout and sleek style. Although it has all the features needed for binary options and spreads trading, the platform is limited to these two areas and does not offer much more.

Several common technical indicators such as the Average True Range (ATR), Relative Strength Index (RSI), Bollinger Bands (BB), Moving Average (MA) and Oscillators (Oscillator) are accessible. Elliott, Gann and Fibonacci tools are among the many sketching tools accessible. Both limit and market orders are accepted.

You can now quickly change the look of the chart and choose from a variety of chart types and time intervals (line, candlestick, mountain and HLOC).


You will need to do your own research before trading on Nadex, as the exchange does not provide comprehensive research and analysis on individual stocks and does not work with third-party research tools.

Fortunately, we still offer a webinar series that covers both historical market data and real-time technical analysis. You can also find up-to-date market commentary and assessments on specific commodities and currencies in the news section.


If you are looking for informative material, Nadex is the place to go. The platform knows that novice traders can be overwhelmed by the variety of derivatives marketplaces. 

To change that, Nadex has developed a full suite of educational materials, including guides, articles, webinars, frequently asked questions, and demonstrations.

The Learning Center is full of guides to help you open an account and start trading with confidence. The blog keeps you updated on market developments, and the glossary helps you understand unfamiliar terms.

The webinars hosted by Nadex are a wonderful resource. Their comprehensive, free webinars make even the most advanced trading tools accessible to amateur investors. 

In addition to binary options basics, they also discuss new opportunities and an overview of the current market.

Nadex goes to great lengths to educate its clients on the ins and outs of binary options and spreads. It simplifies the process of learning and sharing these elements. 

Nadex provides resources like free trading courses and trading e-books because it needs successful traders who can make money continuously. Traders can learn a lot from the numerous online courses, e-books and videos available to them.


The macroeconomic health of a country can be assessed using economic events analyzed by analysts and economists. 

They have a direct impact on markets, which is why investors pay close attention to economic statistics. Important economic events are listed in economic calendars, giving investors the opportunity to speculate on or hedge against their impact.

With Nadex binary options, you can bet on economic statistics such as the unemployment rate while trading macroeconomic events in the US such as currencies or commodities. You can buy contracts on a number of labor market indicators, including weekly claims, non-farm payrolls, the unemployment rate and projected GDP growth.

Nadex Regulation

Many investors are wary of binary options because they are sophisticated derivatives traded in unregulated venues. Since this is the case, many scammers mingle with the people. 

In any case, you can be sure that Nadex will provide you with the most trustworthy trading experience possible since it is a US Commodity Futures Trading Commission (CFTC) approved platform.

Your Nadex funds are held in separate accounts at major banks in the United States. This means that companies can now automate both incoming and outgoing transfers, and your money is protected in the event of the platform going bankrupt.

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Nadex Special Features

The Nadex platform includes special tools for binary options trading and spreads, because that’s the only thing it was designed for from the beginning. Unlike a broker, live market data is available for free on the exchange. 

By using price ladder charts, it is possible to place orders directly from a chart, skipping the traditional step of analyzing the market and going directly to the exchange floor.

When you trade binary options or spreads at Nadex, you can be sure that your maximum profit or loss is clearly set from the beginning thanks to the lower and upper limits included in the contracts. 

You will never lose more money than what is shown as a possible profit or loss on the order ticket before you complete the transaction.

Nadex Pros and Cons

Even though the advantages of Nadex far outweigh the disadvantages, some investors may still decide against using it due to the platform’s shortcomings. To help you decide whether Nadex is the right broker for you, we have compiled a handy comparison table below.


  • There are no conflicting incentives because it is an exchange and not a broker
  • The Commodities Futures Trading Commission (CFTC) regulates the market.
  • Simple price structure
  • Excellent educational material
  • Deposits with debit card are fast and free of charge
  • There are no fees for ACH deposits or withdrawals
  • Ability to speculate on stock indices, currencies, commodities and economic events through various options contracts
  • A free demo account with a simulated balance of $25,000
  • The minimum tick size for spot forex binary options trading is 0.25 
  • Available for US clients


  • An initial deposit of $250 is required.
  • Derivatives only
  • $25 for transfers

Nadex Customer Service

If you already have an account with Nadex or are thinking about opening one, you can quickly and easily contact the helpful customer service team. 

Those who are already Nadex customers can reach the company’s support staff via phone or email. A TTY hotline for the hearing impaired is not available, nor is a live chat for those who want immediate assistance.

No phone number is listed on the main Contact page, but existing customers have direct access to support through their accounts. Customers can send an email or start a live chat session on the contact page to get in touch with support.

Send an email to [email protected] if you have any questions.

Nadex User Experience

In binary options, you either win 100% of the time or you lose 100% of the time; there is no margin for error. You do not have to be an experienced trader to open a Nadex account. All you need is a basic understanding of how derivatives work and a willingness to accept the risk involved. 

A new Nadex account can be opened in about an hour with a minimum of forms. In as little as 5 minutes and with just 5 clicks, you can be up and running with this system.

Nadex does a great job of introducing new users to the site and helping them get started trading properly with minimal effort. If you are not sure if Nadex is right for you, Nadex offers a free practice account and a variety of resources in its Learning Center.

Nadex sample accounts can be set up in no time, and you do not need to have a lot of experience with the derivatives markets to do so. 

However, you do need to know how these complicated financial instruments work and your own risk tolerance in order to take appropriate precautions and protect yourself from losing a significant amount of money.

For experienced derivatives traders, Nadex’s browser-only interface can be a drawback. There is no software available for computers or mobile devices. For inexperienced traders, it is comforting to know that their counterparty does not have a technological edge.

Recommendation: Here’s The Best Alternative

Accepted Countries

Nadex serves customers from a variety of nations, including:

  • Austria
  • The British Virgin Islands
  • Belgium
  • Czech Republic
  • Cyprus
  • Denmark
  • Estonia
  • France
  • Finland
  • Gibraltar
  • Greece
  • Germany
  • Guernsey
  • Hungary
  • India
  • Isle of Man
  • Ireland
  • Israel
  • Italy
  • Jersey
  • Japan
  • Lithuania
  • Liechtenstein
  • Luxembourg
  • Malaysia
  • Norway
  • Netherlands
  • New Zealand
  • Poland
  • Portugal
  • Slovenia
  • Slovakia
  • Spain
  • South Africa
  • South Korea
  • Sweden
  • Switzerland
  • United States
  • United Kingdom

Nadex Review: Final Verdict

Nadex is a trading platform with many advantages. In particular, it facilitates trading in complex derivatives without any risk. Since there is no regulatory control, binary options and call spreads thrive in well-lit markets. 

However, since Nadex is an exchange and not a broker, its interests are aligned with those of its clients to provide the healthiest trading experience possible.

Nadex’s successful educational material makes it easy for newcomers to the world of binary options trading to find their footing.

Even though the market is regulated, it is not necessarily a good place for everyone. Derivatives on Nadex are complex financial instruments, and careless trading can lead to significant losses for inexperienced investors.

Make sure you know all the dangers of derivatives trading and how to deal with them before opening a Nadex account. 

Moreover, a demo account is the best solution if you have no experience with derivatives trading. According to the CFTC, binary options trading is extremely dangerous.

Since you could jeopardise your account balance if you do not do this, you need to come up with an excellent course of action. 

However, Nadex’s Risk Limit Guarantee ensures that you will never lose more than your initial investment.

If you are looking for a well-regulated exchange in the United States where you can trade binary options and spreads over short periods of time, Nadex is a great alternative. 

You have the opportunity to bet on macroeconomic events with binary options and spreads on more than five thousand contracts such as currency pairs, stock indices, commodities and novel products like Bitcoin. Day traders and speculators who want to trade with many markets at the same time will also get their money’s worth here.

Recommendation: Here’s The Best Alternative

Best Alternative of Nadex to Make Passive Income

If you want to make a stable and secure stream of passive income, I would suggest you start an affiliate marketing business online.

Affiliate Marketing is perfect for anyone who is new to online business. 

In fact, of all the online business models I’ve tried, affiliate marketing is the easiest and most rewarding so far.  

In affiliate marketing, you can actually run your business almost with zero cost and achieve a steady and sustainable passive income to pay for your bills. You don’t need any initial capital and can even do it as a side hustle.

And if you really want to learn affiliate marketing and build a business from scratch, I’d recommend you to get started with the most reputable platform for affiliate marketing: Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch. It offers you a free account (including a free website) with comprehensive training on SEO (free traffic methods), which enables you to get started with affiliate marketing right away without paying a penny.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods.

Watch Trading Academy Review

Wealthy Affiliate has existed for 15 years and there are many success stories in the past decade.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has free and premium membership.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny. 

So I strongly recommend you to register a free account and see it yourself.

Recommendation: Here’s The Best Alternative


Can you have more than one account on Nadex?

Nadex limits each user to a single account at any given time. Do not open or fund multiple accounts with Nadex. Likewise, do not use, deposit, or otherwise manage another Nadex member’s account.

What is the maximum amount I can withdraw from Nadex?

Withdrawals from Nadex are limited to the available balance on each debit card used for deposits. Your daily withdrawal limit is $50,000, and each individual withdrawal is limited to $10,000.

How long does a demo account last on Nadex?

You can deposit demo money once a day and get a countdown until you can deposit the next time.

Has anyone made money on Nadex?

Nadex provides the opportunity to earn income. The sad truth is that most people do not make it as traders, but that’s not Nadex’s fault.

Is trading on Nadex worth it?

Neither Nadex nor any other exchange is suitable for all traders. Nadex is the right place for you if you are an investor who is comfortable with risky and lucrative trades. 

Any trader, regardless of experience, can benefit from the low account minimum and intuitive user interface.

How to Trade Binary Options on Nadex?

  1. Forecast market trends.
  2. Choose the markets you want to trade.
  3. Choose a strike price and expiration date.
  4. Execute the transaction 5. Wait for the trade to expire or close it early.


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