Nadex Review – Best US Binary Options Platform

By | February 28, 2017 (North American Derivatives Exchange) is a US-based binary option exchange, one of the first ever to legally offer binary options to US residents. I feel that Nadex is an absolute must-review for me, not only because more and more EU-based traders are drawn to it, but also because I feel that it may actually represent a glimpse into the future of binary option trading all over the world. What is so special about Nadex though and why do more and more people, even from outside the US, trade there?

As you may have noticed, I didn’t call Nadex a “broker,” because it isn’t one in the currently accepted sense of the word in regards to binary options. It is an exchange, which works on an entirely different business model from the single-market maker one currently so popular just about everywhere with the exception of the US. The reason why US authorities won’t allow “traditional” binary option brokers to operate in the country, is the fundamental conflict of interest their business model entails. This business model sees the broker trade against its own clients, on a platform it wholly controls, and through assets the pricing of which it solely controls as well. That doesn’t seem like a fair setup, does it?

Exchanges like Nadex aren’t direct parties in the trading equation. They couldn’t care less which side of a trade wins, since all they do is provide the technology to bring traders together, so they can trade among themselves. With an exchange like Nadex, the price-making is done by the traders themselves, and it’s based on the dynamic of supply and demand – which is indeed inherently fair, and thus viable over the long-run. Nadex trading is a zero-sum game. Whenever a trader wins, another trader has to lose. The exchange earns its revenues from the commissions it cuts on every trade. As such, it only really needs to keep the action going to keep making money. This way, traders can be certain they’re not swindled by the greedy “house,” and that pretty much explains why well-informed traders world over find the Nadex setup an attractive one.

Of course, given the dynamics of this exchange-based business model, the actual trading process differs from how one would trade at one of the “traditional” brokers. I have done a number of tutorials in this regard and I can tell you that while it may seem daunting at first, everything is very logical and straightforward once you understand how supply and demand drive the pricing of options every step of the way towards expiry.

Another factor you need to understand is that Nadex options are capped profits, as well as losses-wise. You can never win more than $100 on a single contract, though you are indeed welcome to purchase several of them in one go, thus increasing your profit-potential.


Nadex is a trusted and regulated operator, one of two or three such exchanges allowed to work with US traders. When it comes to withdrawals, they are indeed serious and trustworthy. The withdrawal section at the Nadex site consists of two separate parts: one for US-based customers and one for everyone else.

US residents can initiate withdrawals through ACH, on which Nadex do not charge any fees. Following the actual withdrawal, it will take 3-5 days for the withdrawn funds to settle in clients’ bank accounts.

Wire withdrawals are also available to US residents. They’re usually processed within one day. Nadex charge a $25 processing fee for every wire withdrawal.

While Debit Cards are actually displayed as a withdrawal option for US residents, no funds can be withdrawn to such cards. Those who use debit cards to make their deposits, will be able to request ACH and Wire withdrawals once their cards clear a one-time verification process.

For non-US residents, the top (and only) withdrawal method is international wire transfer. The $25 processing fee is in place for every such withdrawal though, so making small withdrawals doesn’t really make sense for such clients.

Debit cards can be used for account-funding by non-US residents too, though money can’t actually be withdrawn to such cards. Those who deposit via a debit card will be able to withdraw through wire once their cards are verified.

Payouts and Features

Given that we are talking about contract-based trading here, the payouts are always 100% (minus fees). Options which expire in the money are always worth $100, options which expire out of the money are always worth exactly $0. Obviously, the tricky part here is the “minus fees” one. What sort of fees are we talking about and how much are we looking at?

To purchase an option, a trader will always be charged exactly $1. If the trader then goes on and wins his trade (finishes in the money for $100), he’ll be charged a $1 settlement fee, for a total of $2. If the trader decides to exit the trade early, he’ll pay a $1 trading fee. Losing trades (those that end up out of the money) aren’t charged a settlement or a trading fee. In such cases, traders only pay a total of $1 in fees.

All this makes it obvious that the payout rates at Nadex are far better than anything a “traditional” broker will offer in this regard.

The main Desktop-based Nadex platform is a web-based, no-download platform, which – besides giving traders all the tools they need to buy and sell their contracts, also offers a market depth view and a handy selection of real-time charts and data. The platform is designed to allow traders to “let the market come to them” with the use of limit orders. The MOP (Market Order with Protection) feature, lets traders jump in and out of trades immediately, under favorable conditions.

The Nadex website also features a sturdy education section, complete with a video library, webinars, trade examples, handbooks and market commentary.

One of my favorite features about Nadex is the fact that they offer a free, no-strings-attached binary options demo so that you can try the platform before making a deposit.

Minimum Deposit and Incentives

The minimum deposit currently required by Nadex is only $100, so it’s safe to say it is indeed a very accessible option. Still, those who are serious about their trading should deposit at least $500. The way Nadex hand out their deposits is extremely original as well. Those who make a large enough deposit become eligible to pick up a few free trading days, called Fee Holidays. A $500 deposit for instance earns 2 such days. During these days, all the above detailed fees are waived, and the exchange makes no money at all on the contracts traded by the beneficiaries of the deal. A $1,000 deposit is worth 4 free trading days, while a $3,000 one earns 6 such days.

To pick up the maximum of 10 free trading days, one is required to make a $10,000 deposit.

Customer Support

Nadex support can be contacted through email:, or through a couple of phone numbers. The toll-free number for the US is 1 877 776 2339. The international number is: +1 312 884 0100.

Nadex Review Conclusion

Nadex is a very solid, proper and regulated binary option exchange, which boasts by far the best liquidity in the industry and which is therefore able to provide pricing on a surprisingly large range of assets. Its payout rates are great and the actual trading mechanism is very interesting.

Open an account with Nadex

We get commissions when a new Nadex account is funded via our referral link.

9 thoughts on “Nadex Review – Best US Binary Options Platform

  1. Chinyelu

    Not sure about market markers in nadex, just that the risk to reward ratio is awful. Risking 80 to make 20 unless you trade the OTM contracts which one needs the news to move the market to his or her favour. But Nadex has an advantage as well because if you’re money you can exit the trade likewise if the market is aganis you, you can as well exit with some loss instead of lossing all you money. For the singal in the group it always ends in otm which is very bad. The group singal if care is not taken can wipe out $500 account in one day. Very bad for we nadex traders in the forum. Hopefully there will be a change soon. Singals provided does not come with proper explanation which throw most people off balance.

  2. terry davies.

    What about magnum trades they have got office in us London &Russia are they any good???.

  3. Victor

    NADEX works great, withdrawls go through good, no account managers constanly calling you to put more money in your account, getting in and out of trades with full profits before expirations is one of the greatest thing in the industry of BO.

    Regarding good signals for Nadex I think is not a lot of them out there, I think we could use one more Nadex admin in the group.

  4. Victor

    Nadex works great, withdrawls also go through with no problem, no account managers calling you constanly to put more money. The only thing with Nadex is working with their platform take a little getting use to but once you know how to use it pretty easy, getting in to contracts and getting out with full profits before expiration is one of the best things they offer in the industry of OB.

    Regarding the signals I think we could use a lot more good signals for Nadex in the group, there is not a lot of Nadex style signals.

  5. Cecil

    Just made my last trade on nadex….eur/usd….been dropping like a rock, made trade….immediately turned going up….what a freaking joke….

    1. Gregg

      Look at charts from an independent source and follow those…. You’ll see they are the same or very very close to nadex. Losing a couple trades because of retracements or reversals doesn’t make it a scam

  6. Cecil

    Im in usa. Either i really suck as a trader….or nadex is a very elaborate scam. Ive funded my account over and over. Make a trade, market moves against me. Again again again. Not even normal. I ackowledge being wrong….sometimes. Always? Nope. They (Nadex) have big market makers who will eat the small traders. Dont doubt it.

    1. Eckhard Hensel

      My advice, join SNIRs Nadex group. He does webinars on this. Also use his ideas about APEX investing as a tool to make Nadex easier. Nadex is not cheating that is for sure.

    2. shahrukh

      all binary brokers are bucket shop only forex is real legit trading.


Leave a Reply

Your email address will not be published. Required fields are marked *