Nadex Review

A well-regulated binary options exchange based in the U.S.

Over the past decade or so, binary options trading has become one of the most popular ways to earn money online. However, the United States prohibits its citizens from trading on European-regulated sites, so the world of binary options has been largely inaccessible to U.S. residents. There only exist a small number of binary options sites that can be accessed in the United States, and Nadex, the North American Derivatives Exchange, Inc., is one of the most experienced, and prominent of them.

Basic information

Broker name:
Nadex (North American Derivatives Exchange, Inc.)
Year established:
Authority (Jurisdiction):
United States
Regulated/Licensed by:
Registration number
311 South Wacker Drive, Suite 2675, Chicago, IL 60606.
Support phone number:
(877) 776-2339; +1 (312) 884-0100 (International)
Support fax number:
Email address:

What is Nadex?

Nadex is one of the largest binary options and spreads exchanges in the world. Because it is not a broker, Nadex has no vested interest in how assets perform on the open market. Rather, the platform matches buyers with sellers so that both parties are trading at a price that they believe is fair, and Nadex charges buyers and sellers a consistent flat fee per contract, rather than earning a percentage on larger investments. Not only does this ensure a fair trading field for all users, it also provides traders with a 100% return on investment (ROI) for every successful trade.

Nadex Homepage

Nadex Homepage

Our favorite aspects of Nadex

  • An absolutely fantastic Learning Center, complete with several interactive training videos, ongoing webinars (with past ones archived), handbooks, and sample trades.
  • The ability to trade binary options on economic events, with no connection to how those events affect the market or asset prices
  • Because it is not a broker, Nadex matches buyers with sellers, in a “winner-take-all” type of exchange in which the fees, profits and losses are set and known in advance, no matter what the outcome of the trade
  • The option to exit a trade before expiry, to preserve profits on in-the-money trades, or minimize losses when out-the-money
  • Everything about the site and the platform is transparent. No hidden fees or unpleasant surprises

Account types, bonuses and special promotions

Nadex offers individual accounts for both U.S. and foreign residents, as well as U.S. based corporations,trusts and partnerships. Additionally, users can open a Demo account for free, and receive $25,000 in virtual funds to use while they learn the ins and outs of binary trading.

New users receive free trading days upon opening their accounts, based on their initial deposit:

  • $500 - 2 days
  • $1,000 - 4 days
  • $3,000 - 6 days
  • $5,000 - 8 days
  • $10,000 - 10 days

Nadex Account Types

Nadex Account Types

Financial information:

Return on Investment (Payout rate - %):
Welcome bonus:
Free trading days - based on amount of initial deposit
Minimum deposit:
Maximum investment per trade:
Varies per exchange -
Minimum investment per trade:
Varies per exchange -
Loss protection:
Account types:
Individual, Corporate, Demo
Accepted currencies:
Expiry times:
From 5 minutes to one week

Registration - Opening an account

Opening an account is very quick and painless. Simply click on any of the many "Open an Account" buttons that are provided on the site, and enter your personal and banking details. Depending on where you live, you may be asked to upload certain documentation (such as passport or government-issued ID, recent (3 months) utility bill or lease, or social security card). Deposit funds into your account, and you are ready to begin trading. If you wish to start with a Demo account, then you do not need to deposit any money.

Nadex Registration

Nadex Registration

Banking - Deposits and withdrawals

  • Deposit: U.S. residents can deposit funds by debit card, bank transfer, wire transfer or check (check deposits take five business days to process after the check arrives at Nadex). A traders who lives overseas can deposit funds into his account either by debit card or international wire transfer. Deposits must come from checking accounts, not from saving accounts.
  • Withdrawals: Withdrawals can be be processed by wire transfer for traders anywhere in the world. Any requests via wire transfer that are received before 4:00 p.m. ET (3:15 on Fridays) can be processed that same day, otherwise they are processed the following business day. There is a $25 fee for wire withdrawals. U.S. residents can also withdraw funds via bank transfer. There is no charge for this, but processing the withdrawal takes up to 5 business days.

Nadex Banking

Nadex Banking

Trading platform

Nadex Trading Platform

Nadex Trading Platform

Nadex provides a powerful, intuitive and web-based trading platform that can be accessed from any PC or laptop. Traders can also access the platform through the smartphone and tablet applications.

Available assets

Nadex offers a range of currency pairs, commodities and stock index futures to trade upon, as well as economic events, in which traders can predict whether economic reports will be higher or lower than a certain mark, without focusing on how that report will affect the markets.

How to trade

Trading on the Nadex exchange is similar to traditional binary options trading, but with some differences. The biggest difference is that on the Nadex platform, every option contract is based on a $100 total price, which means that each binary option (one trader buys while the second one sells) is equal to a total of $100. The price to either buy or sell an option is completely determined by what the two traders agree upon.

For example, say Trader Y believes that the USD/JPY will close above 123 at the expiry time, and he is willing to buy a contract for $65. If Trader Z believes that the pair will close below that price, he will sell his half for $35, bringing the total price of the contract to $100. Whichever trader is correct will collect the entire amount. That is to say that if Trader Y bought the contract for $65, then his maximum loss on the trade will be the $65 he invested. If he wins, his profit will be the $35 that Trader Z invested.

Traders can buy or sell multiple contracts on the same option, each one at the same price, and thus multiply the maximum potential profits (and, of course, losses) on each trade.

  1. Choose a market upon which to trade and a specific asset
  2. Choose a strike price, which is the the price that you believe your chosen asset will either be above or below, and the expiry time that you believe it will be there
  3. Select the direction of the trade that you want. If you believe the asset price will close above the strike price, you “Buy” the option, and “Sell” if you think it will close below it.
  4. Confirm the transaction and wait for the trade results.
  5. Traders may opt out of a trade before it expires, in order to either avoid losing the full investment if a the trade is out-the-money, or to preserve earnings if a trade is in-the-money, but threatening to turn around.

Is Nadex a scam?

For every exchange on the platform, Nadex receives a set fee of $1 from the buyer and the seller, plus $1 settlement for the trader who earns a profit on the exchange. Because Nadex does not earn commissions or percentages based on wins or losses, it remains an impartial exchange whose fees are the same no matter what the asset prices are.

That, combined with the close regulation by the United States Commodity Futures Trading Commission (CFTC) and the site’s absolute transparency, ensure that Nadex is a thoroughly reliable and trustworthy exchange, and not at all a scam.

Where is Nadex available?

Traders can access Nadex from the following 43 countries:

  • 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

Languages supported

The site and customer service are all in English.

Customer support and security

Customer support lines are open continuously every week from Sunday 11:00 a.m. ET - Friday 5:00 p.m. ET

Pros and Cons of Nadex


  • Complete transparency, and excellent ROI
  • Accessible in the United States
  • Very extensive educational library, including webinars, videos, handbooks and trade examples
  • Free Demo account with $25,000 in virtual funds to learn trading
  • Offers binary options on economic events


  • While it is one of the few binary options sites available in the United States, it is not accessible in several other major markets, including Canada and Russia.
  • The list of available assets is not very large. Only 10 currency pairs, 7 commodities and a handful each of futures indices and economic events. No stocks are traded on the Nadex platform.


Nadex is an excellent site for clean, honest, and profitable binary options trading. It is an exchange, not a broker, and therefore does not need to play around with percentages or commissions. Buyers and sellers put up a flat-fee, and the earn the full profits for all successful transactions. Demo accounts enable traders to learn the ins and outs of trading before investing actual money, and the Learning Center offers very comprehensive tools for traders to maximize profits while minimizing their risks.