NADEX is a binary options trading exchange operating as a subsidiary of IG Group PLC that provides a replenishable demo account to help its users learn and practise their skills. The broker also offers a learning center via which it educates new traders about trading.
NADEX provides traders with a $25,000 demo account balance. This is replenishable, and you can do so by reaching out to their customer service. The benefits of opening a binary options demo account are multifarious. For one, if you are a newcomer to binary options trading, opening and trading with a demo account will help you to learn and practise your newly acquired trading skills, allowing you to make all the mistakes without any risk to you. Furthermore, if you are testing out a new binary options trading platform just like NADEX, it is quite important that you use a Nadex demo to understand how the platform works before committing your hard-earned capital to it, while still experiencing real market conditions. Finally, even if you are an experienced trader, you might still find a demo account useful for testing new trading strategies or markets to decide if they are profitable.
NADEX also provides a Learning Center to educate new traders in the art of trading which is highly recommended. And there is no better place to test and practise the knowledge gained from there than with a demo account provided by NADEX itself. However, we must note that while Nadex demo trading allows you to experience real market conditions, the emotions attached to both are starkly different.
You may have heard in the past that binary options trading and binary brokers are not allowed in the USA. However, that is not entirely the case. In the USA, binary options trading is not illegal, but it can only be offered by exchanges that are regulated by the U.S. Commodity Futures Trading Commission (CFTC) and not retail brokers. In essence, you can trade binary options through exchanges but not through brokers such as IQ Option, OlympTrade, amongst others. One of such exchanges is NADEX. Formerly known as HedgeStreet, NADEX stands for North American Derivatives Exchange.
Founded in 2004 and based in Chicago, it is presently a subsidiary of IG Group PLC, the highly-respected UK-based forex and CFDs trading broker, listed on the London Stock Exchange. NADEX is the only fully regulated binary options trading exchange in the USA. It offers a trading experience that is quite different from what you get from European-based brokers, especially in terms of how trading works and the instruments that are available for trading. Note that we refer to NADEX as a binary options exchange, and not a broker. This means that it is mainly in the business of serving as a connection or intermediary between persons who are willing to buy and persons who are willing to sell binary options in any market.
NADEX is currently available in over 40 countries globally, including South Africa.
A binary options trading robot is a computer program or software based on a set of signals that helps traders make trading decisions. However, bots are not accepted everywhere and to date, Nadex does not offer a trading robot or any automated trading software.
It is a popularly quoted statistic that the vast majority of people who are new to trading binary options – and of course other derivatives – quit within a very short time. Some statistics put the figure as high as 90% of new binary options traders. The main reason new traders quit trading is that they experience a lot of losses early on in the game; and of all factors that are blameworthy for this, trader inexperience has been noted to be the most common.
To be able to trade binary options profitably and consistently, you need to master the art of trading. This requires some reasonable length of time to be committed to learning and practice. This “length” varies from trader to trader, but can typically take months, or in some cases, years.
However, does that mean you have to wait for so long a time before you start profiting from trading? Absolutely not! Advances in technology have made profitable trading possible through the use of various trading robots.
Nadex Automated Trading
There is essentially no difference between automated trading and trading robots. Automated trading is simply the process of using computer software (“robots”) to make trading decisions. What happens in automated or robotic trading is that computer software is developed with code fed into it. The purpose of the program is to “scan” the markets for potential trading opportunities that meet the criteria set out in the code.
When the program spots such opportunities, it can do one or both of 2 things, depending on the instructions that were programmed into it: notify a trader of the trading opportunity so that the trader can enter such trades or simply enter the trades itself. With trading “bots,” a trader literally takes the burden of trading off him/herself and leaves that to computer technology.
However, automated trading is not allowed everywhere and has not gained popular acceptance, despite being a commendable idea. This is largely because of the scams that are associated with trading robots. Many self-acclaimed “experts” in trading and computer technology come up with phoney programs that do not perform and end up losing trading capital of their users. As such it is unsurprising that NADEX does not provide automated trading software.
Nadex Signals Review
Signals or alerts or prediction indicators are alerts that can be launched by a specially designed algorithm or can derive from experienced traders. The trading signals are based on the assessment and analysis of the market. With some, the signals are sent by trading experts, while others rely on signals generated by complex algorithms which scan the market and then make calculations. The choice here is absolutely individual – some traders might decide in favour of technology while others might trust more in the human experts. Either way, signals can be considered as a good basis for the increase of your trading profitably. Nowadays, signals cover a wide range of global markets and a variety of underlying assets including currencies, indices, commodities etc.
Most alerts or prediction indicators are marketed as free binary signals, and there are many binary signals providers to choose among. Please note that Nadex does not offer trading signals services and if you come across providers that claim to offers Nadex signals, keep a close eye that this service is truly verified by the Nadex Exchange.
Nadex Binary Options
NADEX gives you the opportunity to trade multiple markets across the globe – forex, stocks, commodities, equity indices, bitcoin – but also gives you access to speculate on special instruments such as macroeconomic events like Federal Funds Rate decisions.
It is also worth noting that Nadex is an exchange and not a binary options broker. It connects traders together. In the Nadex scenario, traders enter into “contracts” and over 10,000 of such contracts are traded on a weekly basis. This essentially means that you are trading against your fellow traders.
You must note that the way binary options work with Nadex is quite different from what obtains with binary options brokers in other parts of the world. With other brokers, you simply trade in the direction of the market after a particular amount of time. Will the market go up or down after the expiry period? But with Nadex, what you use to determine trading decisions is Will the market close above or below this price by the expiry period? Beyond this, you can trade other innovative instruments like knockouts and call spreads.
Trading Nadex Touch Bracket™ Contracts
Touch Bracket ™ Contracts are a new type of a contract offered on NADEX, they were introduced at the end of 2018. These contracts allow traders to try to predict price movements in the pre-defined range which is set with floor and ceiling price levels. With floor and ceiling levels defined, we have the maximum boundaries for the contract. The contract expires when the price index of the underlying market touches (and/or surpasses) the price levels. The maximum duration is one week – meaning if the price does not touch the floor or the ceiling, the contract will expire based on the predefined expiry time.
Options offered by Nadex are High/Low and Long Term, as well as Nadex Call Spreads.
With Call Spreads, Nadex introduces a contract where floor and ceiling levels are set, however, they do not trigger the trade to be closed. The trade stays open, however, the losses or profits are not accrued after those levels.
Finally, you should also note that Nadex allows maximum leverage of 1:40 and does not issue margin calls. Nadex also offers traders products in markets of forex ( 10 currency pairs), stock indices (8 indices) and 7 different commodities.
Nadex Minimum Deposit USA
When you want to open a “live” trading account, you need to put at least $250. Admittedly, this is really on the high side when putting side-by-side with brokers in other parts of the world that require as low as $10. This is however understandable bearing the fact that Nadex does not provide so much leverage. However, the maximum volume you can use to trade at a time is $50.
To make deposits into your NADEX trading account, options available to you include:
- Debit card (preferably one powered by MasterCard or Visa)
- Bank Transfers
- ACH transfers
- Wire Transfers
- Paper cheque (this may take a while to reflect, however).
The above is mainly for US-based traders. Non-US residents can make use of debit cards or international bank transfers only. Notably, funding via E-wallets and crypto wallets is not allowed as you will find with most brokers. However, NADEX probably does not allow them, in compliance with the regulation.
As per withdrawals, you can withdraw funds from your trading account mainly by ACH or wire transfers. Typically, withdrawal requests are processed within one working day and you get credited thereafter. However, due to strict CFTC regulations, you all need to provide proof of address and identity before you can make withdrawals.
Nadex App for iPhone
In the past, you could access NADEX’s trading platform through mobile applications available for both Android and iOS as well as a desktop application for PC. However, from August 2018, it no longer supported binary options trading on its apps. This was due to the fact that owners of both platforms, Google (for Android) and Apple (for iOS) clamped down on binary options apps, largely due to the surge in many scam apps purported to be binary options trading apps. This was also partly due to the shifts the company noticed was happening in consumer usage of tech. That is, gradual but noticeable movement of people from using downloadable apps to using web apps.
In response to this and to still give traders access to its platform, Nadex developed and released a Nadex Beta for its forthcoming progressive web app (PWA) – an app that functions pretty much like normal downloadable apps but can access from your browser, and does not need to be downloaded, or requires any updates. Functioning like a toned-down version of the desktop app, it is named NadexGo and comes with technical analysis tools, charts and indicators. This app allows you to make trades directly all with good user experience.
NADEX has got a number of things to offer far more than traditional binary options brokers. For one, as we already know, NADEX operates on an exchange model rather than a broker model. Here, what happens is that you are paired with another trader who takes the opposite side of your trade. So, if you go with a “sell”, the other person is “buying”. As such, when you lose, you are losing to a fellow trader. Same thing when you profit.
This is different from what you get from most other binary options brokers that mostly take the other end of your trade, and as a result, most times when you lose, it is the broker that gains. This creates room for conflicts of interests, as brokers may manipulate their platforms to ensure you lose and for them to gain.
NADEX’s system, however, guarantees transparency since their business model works in a way that they only earn money by charging nominal fees for trades facilitated. Most complaints are from traders who aren’t allowed to join, traders who fail to understand the system and traders looking for more services. However, we did manage to locate a few complaints about Demo Account being different from Live and about failed withdrawals because the client failed to provide verification documents.
However, NADEX’s system of doing things will be a bit new to South African binary options trading, which means there will surely be issues. This offers more benefits than a traditional broker, as you have access to customisation i.e. the one that took the other end of your trade. As such, if you lose, it is the other trader who gains and vice versa. This system also has its shortcomings, though, one of which is the likelihood of you not finding trading counterparts when you need to make trades. It should be noted that this does not happen often, but we can’t rule out the possibility.
NADEX makes money by charging a normal fee with every contract bought and sold. It also encourages traders to try demo account and to look for the best deals possible as there is no manipulation of contract prices, but everything is determined by real people like you. It creates far more in terms of opportunity, too. This is opposed to many other binary options brokers that give unlimited access to trades because they back every trade you make. You are not purchasing an option from another trader, but rather from the broker itself.
In many instances, an exchange gives you more freedom than a broker does – thanks to the customisation capabilities that you gain. It also has some downfalls. For example, if you wish to sell an option and no one purchases it, your trade is not completed. This doesn’t happen often too, but it is a possibility. It eliminates your chances of making a profit in some cases, but it also eliminates your chances of losing money. Is it inconvenient? Sure, in the rare times when it happens. But it can be a blessing in disguise.
Nadex Customer Service USA
NADEX provides customer support services. For one, their customer service channels are extremely responsive. They are available by phone, or you can email them directly at [email protected]. However, they can only be reached during certain hours, depending on your customer status. If you are just a prospective customer, you can reach out to a demo account specialist from 11 AM GMT (7AM ET) through 12PM GMT (8PM ET) on Mondays to Thursdays; however, on Fridays, the open hours are between 7AM GMT and 8:15PM GMT (4:15PM ET).
On the other hand, if you are already trading with NADEX, you can reach the customer service representatives starting from 7PM GMT (3PM ET) on Sundays through 9PM GMT (5PM ET) on Fridays. This is commendable but more can still be done considering the fact that 24/7 customer service is not being offered a good number of brokers in other parts of the world. There is a toll-free number for US residents and another for non-US callers: a good number of the customer service personnel are bilingual – at least in the major languages. One thing to note is that NADEX does not provide live chats, an area we believe can be improved upon.
Furthermore, it should be noted that new traders are given 2 months of access to a binary options trading expert.
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