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NADEX Review – Free Demo Account for US Traders 2020

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  • Min. Deposit $250
  • Max. Payout 100%
  • Min. Investment $1
  • Mobile Yes
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The North American Derivatives Exchange, commonly known as NADEX, is a regulated binary options exchange within the U.S. The company is regulated by the U.S. Commodity Futures Trading Commission (CFTC). They are the only fully regulated binary options providers within the United States. This means that if you live in the U.S., NADEX is one of the best options for you.  NADEX is one of the most trusted names in the world of binary options trading. Obviously, this distinction comes with a lot of weight and importance. But just because it’s one of the only fully regulated exchanges in the United States does not mean that you should automatically create an account and fund it.

NADEX offers a different type of trading experience from the European style brokers that you may be familiar with, and they are not the right place for all traders to go, so read our full NADEX review on all the things you need to know about binary options trading with NADEX.

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  1. NADEX Account Features

    Opening an account with NADEX is free, but it is important to emphasise that there are various fees that tend to apply during trading.

    NADEX offers traders two account types to choose from: a real trading account, which is referred to as the Trader Platform, and a demo account, which they call Demo Trading Platform.

    NADEX Demo Account

    If you are new to trading, opening a binary options demo account is going to be your best move after you create your account. The binary options demo account allows you to experience the NADEX trading platform, testing it out in real time, all without needing to risk real money yet.

    Once you are ready to move on to the actual trading platform, you can. While writing this NADEX review, we noticed they really want their traders to succeed, and encouraging demo trading is one way to help make this happen.

    NADEX Trader Platform: Step-to-Step Guide on Opening Your Real Account

    The NADEX Trader Platform is similar to a regular trading account , meaning it gives you easy access to all the trades with real-time charts that offer insight into the process.

    If you have been demo trading at NADEX and decide that you want to open up a live account with them, the process is a bit more complicated than creating a demo account. Remember that NADEX is a CFTC regulated exchange, and because this is affiliated with the U.S. government, there are a lot of rules that you will need to follow—typically more so than any other binary options broker or exchange in the world. That’s fine with us; it means that they are a very reputable and trustworthy place to trade. Still, the process can be different, so we’ll walk you through it.

    1: Application

    The application only takes about five minutes in total to get through. The information that is sought is not complicated, just personal info. You will need to supply your name, country, and mailing address. You’ll also be asked to provide a valid phone number and email address. NADEX also asks how you heard about them. Tracking this information helps them to market their services better. Finally, you will need to click a box that says you agree with their policies and that they can get in touch with you. Once this is completed, you can submit your application and move on to part two.

    2: Funding your account

    Here, you will be asked to fund your account. You can’t trade real money unless you have deposited money. Unlike other brokers, NADEX does not allow credit cards. You will have to use a debit card, mail a check or submit a wire transfer request. This slows down the access that you will have to trading at NADEX, but this is a U.S. policy, and it’s something that you’ll have to abide by if you want to trade here. In our opinion, it is worth the wait because of the great trading platform that NADEX has.

    They will likely ask you for documentation, but typically it is nothing out of the ordinary. For example, you will likely be asked for a driver’s license or a passport to prove residency. Again, this might slow the process down by a few days, but in the big picture, we didn’t find it to be a big deal. It is important to do this process properly so you don’t have any problems with future binary options payout.

  2. NADEX Trading Software

    NADEX runs with a proprietary trading platform. Because it is regulated, this platform is constantly monitored. Safety and security are very serious focuses for this company, and their software is perhaps the most trustworthy that you will find. They are under the full coverage of the U.S. government.

    NADEX Binary Trading: How it Works

    NADEX is a slightly different type of binary options trading experience than what you may have seen in the past.

    Depending on the asset that you access, you will see a variety of choices for how to trade, but every trade you will be faced with, NADEX will give you a maximum amount that you can earn and a maximum that you can lose.

    Your job as a trader is to predict an outcome that has a strong chance of being profitable and reduces your chances of losses to as little as you can get them, while maximizing your chances of earning money.

    For your peace of mind, NADEX’s trading platform is very simple and straightforward. Trades can be established and monitored from a single screen, ensuring that the process is quick on your part so that decisions can be made with as little hassle as possible. Although this is a slightly different type of trading, the way that the software platform is set up, the differences are minimal.

    You will need to adjust the math on some of your analysis and risk management techniques, but this is a simple change and you will learn how to make these adjustments with some experience. Using the NADEX demo account platform can help to speed up this process.

    NADEX provides their traders with a lot of tools to help them succeed, such as charts and technical analysis indicators. They also have a lot of different types of trades that many brokers don’t offer, such as an ability to predict economic events, such as what the Federal Reserve will do with upcoming announcements, what the jobs reports will say, and how political events will turn out. This gives NADEX traders a lot of flexibility that other sites do not.

    What’s an Exchange?

    You may have noticed in the name above that NADEX is an exchange. What does that mean to you as a trader?

    At an exchange, you are buying options contracts from other traders who have placed them for sale. You can also choose to create and sell options contracts if you wish, too. The winning side of the trade earns the return that was agreed upon before trade execution.

    Binary Options Exchange vs. Binary Options Broker

    This means that when you have a losing trade, it’s not the broker who profits, but rather the other trader. NADEX makes money by charging a normal fee with every contract bought and sold. It also encourages traders 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 a binary options broker, where you have unlimited access to trades because the broker backs 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 customization capabilities that you gain. It also has some downfalls. For example, if you wish to sell an option an no one purchases it, your trade is not completed. This doesn’t happen often, 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.

    How Does the NADEX Trading Platform Work?

    The NADEX platform allows you to trade options for as little as $1 per trade, depending on the kind of returns you hope to receive.

    If you have experience in the binary options world, one of the first things that you will notice with NADEX is that their trades are structured differently than the European style options you’ve been exposed to. Rather than a structure where you are trying to predict if the current price of an asset will go up or down over the stated timeframe before the expiry, earning an agreed-upon rate if you are correct in your prediction, NADEX options are a little different. Here, you will be asked whether the price will be above or below a given point upon expiry.

    In this respect, NADEX is very similar to other binary options brokers. But instead of risking a certain amount, you need to select a payout. If you choose to have $100 returned to you for a correct trade, you might need to risk $60, if the trade if more likely to be successful. Unlike with other brokers, you need to confront the issue of spreads at NADEX.

    NADEX also allows their traders more control over the trades they execute. Unlike other brokers where you take out a trade and hope for the best, NADEX allows their traders to end their positions early in many cases in order to cut their losses or to realize their profits early. This is a good risk management tool to have in your bag of tricks if you are an experienced trader and know how to use it properly.

    NADEX Mobile App: Trading on-the-Go

    NADEX also offers mobile trading. They have a platform available both on tablets and on smartphones, making the use of their platform ideal for busy individuals on-the-go. One of the few drawbacks to mobile trading is that some individuals find performing detailed analysis difficult to do on their mobile devices.

    NADEX Spreads: How Do They Work?

    NADEX offers spread trades for their clients. This is a different way of trading than the binary options that you might be used to, and as such, there is a certain amount of curiosity that traders often have when dealing with them.Some traders jump in headfirst and lose their money trading on spreads because they do not have the knowledge or the expertise to be successful with them. Many other traders avoid spread trades altogether because they are a different type of trade than what they’re used to.

    You don’t need to fit into either of these extremes. Instead, we urge you to learn what these trades are and practice with them in a demo account. This way, you can have some level of expertise with them, and when the right situations pop up, you will be more likely to trade these instruments with success.

    NADEX vs. Forex: What is the Difference?

    First, let’s get an important distinction out of the way. If you have experience with Forex trading, you may think that you’ve already gained mastery over the concept of spreads.

    However, the type of spread that is present at NADEX is a very different thing than what you will find at a Forex broker. When you are Forex trading, you will find two different prices for an asset: the bid and the ask. When you buy a currency pair, the price will be higher than the price that you can immediately sell that pair at. In order to make a profit, you need to wait until the price moves enough that this difference is overcome.

    At NADEX, spreads are set up in a very different manner. Here, you are given a range of prices—a spread—of where an asset will finish in price. This establishes a floor for how much you can possibly lose, and a ceiling for how much you could earn if things go well for you. This range gives you protection against losses, which is a beneficial risk management move, and it gives you a cap on how much you can earn in exchange.

    Let’s say that you are focusing on the GBP/USD currency pair, and the range 1.1000 to 1.1250 is given. Even if the price of this pair drops below 1.1000, this will be the price you are given. And vice versa for the upper end of this spread.

    Now, you establish a contract. Let’s say you think the price will drop for this pair. You create a contract where you are selling the pair. If the price does drop, then you will earn the difference between what the strike price was and what the expiry price was, multiplied by your risk and the leverage that you assumed. You can also buy existing contracts from other traders.

    What you do is based upon the analysis that you conduct and where you think the asset’s price is headed. In this respect, it is similar to a traditional binary option. In other ways, it is very different.

    Trading NADEX Spreads: The Strategy

    You have probably realised by now that NADEX spreads require a very different approach than if you were to stick with the traditional binary options market or trade in the Forex marketplace.

    How do you develop a working strategy trading spreads at NADEX?

    First, learn the material. Go over their tutorials so that you are familiar with the process of executing trades in real time. Practice with the free demo account so that you are able to make trades quickly and without making a mistake.

    These are the very first things you should do on any trading platform, whether it’s a broker or an exchange, and regardless of the trading instruments that you will be using. You need to ensure that you can flawlessly navigate the websites you’ll use, and make trades without error, all without spending too much mental energy remembering which buttons to push and where they are located. This takes time and practice, but it’s a must if you want to give yourself the best chances you possibly can.

    Next, consideration needs to be given to risk. If you’re using leverage, are you using too much? If your trade turned out to be a worst-case scenario, are you okay with losing that amount of money? If no, then you need to make some changes so you are not overextending yourself and risking money that you shouldn’t be risking.

    Finally, evaluate whether your chances of success mathematically outweigh your chances of profiting. If you can see a trade going in either direction, but you stand to lose slightly more than you could earn, basic math says that given enough scenarios of this occurring, you will lose money.

    Situations that are not mathematically friendly to you should be avoided. These math skills will be something that you will want to develop if you do not already have a firm grasp on how these things work. The Learning Center at NADEX can get you pointed in the right direction for where to get started here. There are also plenty of resources out there on the web that can help you learn some of the finer points of the math needed to evaluate yourself as a binary options or spreads trader.

    There are literally an endless number of strategies out there for trading NADEX spreads. Find a few that make sense to you, learn them as well as you can, and practice them over and over again.

    That might not sound too glamorous, but this is one of the most reliable methods of making money trading here that you will find. And because this doesn’t involve an automated trading method, and because it doesn’t have you blindly following a set of rules, you are more likely to gain a deep understanding of how spreads work, and this knowledge can be applied to different situations. Hopefully, this will help you to be a profitable spread trader.

    Does NADEX Have Auto Trading?

    Automatic trading, or binary options robots, are becoming very popular new methods of trading. Here, signals are plugged into a computer and trades are made are for you automatically. This, as you might have guessed, seems to have a ton of potential.

    All you need to do is plug in what you want the robot to do, and it does it for you. However, this isn’t all that it might seem. Let’s take a look at some of the things that a trading robot does, and where NADEX fits in with this.

    It might come as a surprise, but NADEX does not offer automatic trading for their traders. There are a number of reasons for this. For one, auto trading has the potential to be in conflict with local regulations. In order to fully protect themselves and stay 100 percent compliant, NADEX does not offer this service.

    Auto trading also has the potential to drastically increase the risk that you take on. While many traders benefit greatly from this, a good number of traders also lose a lot of money. Just because you are using a trading robot does not mean that you are going to make money automatically.

    Unless the signals that you use are excellent, you are likely to lose money. NADEX recognises this and has taken steps to protect their clients.

    NADEX EDUCATION: Learn How to Trade

    NADEX has a lot of tools that will help binary options traders to improve their skills and have a better success rate, even without using a trading robot. These skills are a must if you want to stay in the marketplace for an extended period of time, whether you use a trading robot, or you are executing each trade on your own after researching the positions that you are thinking of taking. Enhancing these skills is a priority for NADEX, and it should be one for you, too.

    If you want to be a successful trader, you need to keep learning. NADEX has the best binary options education section on their site. Using this is a must if you want to keep growing as a trader. Gain these skills is far more time intensive than using a trading robot, but it is going to help you to grow your skills as a trader and give you the background that you need if you want to be successful over the long haul. It’s also going to give you a far better likelihood of being in the market earning money a year from now than if you were to blindly make trades without knowing what you were doing.

    You can trade the regular binary options basics meaning trading call or put depending the market direction you believe in. You cannot trade touch options on NADEX.

    At NADEX, tools like webinars, video tutorials, trade examples and walkthroughs, and guidebooks for binary options trading and using the platform are all easily accessible. They also have an archive of past webinars for their traders so that you can go back and watch past webinars and get caught up on the skills that were examined.

    NADEX also offers their traders access to market commentary, news events, and a glossary so that if terms that you are unfamiliar with are covered, you don’t have to worry about missing out on educational content. They also have more in depth courses to take advantage of if you really want to make the most out of your binary options learning and expertise. Alternatively you can read our free binary options trading course online.

    NADEX Demo Account: Put Your Trading Knowledge into Practice

    The skills and concepts that you learn at the NADEX Learning Center need to be tested out before you are likely to apply them with uniform accuracy. The free NADEX demo account is a feature that you will definitely want to familiarize yourself with if you want to improve as a trader. When you trade it is important that you in the long run understand itm and otm meaning. It is paramount to end ITM (In the Money) more often than not.

    Here, you can practice the skills you learn through the NADEX Learning Center and test out new ideas of your own. Demo trading involves no risk to real money as you are trading with fake money, but you get to use the actual Nadex trading software while you practice. This is a great way to get the experience you need to be more successful, all without gaining it while losing real money.

    Demo trading doesn’t replicate real trading exactly. There are no emotions in demo trading, and you are not going to feel the same loss losing $100 in fake money as you would in losing $100 of real cash. However, with demo account practice, you are going to be better at using the software you will be using from here on out and reduce your chances of making a silly mistake. You will also gain more experience with the binary trading strategy you’ll use in your every day trading routine once you switch over to real money, and your mastery over these concepts will be much higher when the stakes are real.

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  3. NADEX Support Information

    Every new trader is entitled to two months of free assistance with a binary options trading specialist.

    Their customer service department is also equipped to answer any questions you might have about the platform, banking, or any other aspect of the site.

    They can be contacted during US business hours at 1 (866) 296-0167, or by email at [email protected].

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  4. NADEX Payment Methods

    NADEX Deposit Methods

    Deposits to NADEX are about as simple as it gets. Deposits can be made in a number of different ways. You can use a debit card, bank transfers, wire transfers, or a paper check. This might take a little bit longer than the instant deposit options that some other brokers offer, but it guarantees the safety of your money between transactions and it helps to prevent fraud in a much more thorough manner than any other broker can do.

    The minimum deposit at NADEX is $250.

    NADEX Withdrawal Methods

    Withdrawals can be made by an ACH transfer or by wire transfer. They are typically processed within one business day, and often show up in your bank account in as little as three days after your withdrawal request has been made. You will need to provide documentation of your address and identity thanks to U.S. legal restrictions in order to have your transactions processed, but this is a simple process and can be taken care of before you make your request in most cases. Be sure to contact their customer service department if you have questions about this.

    NADEX CONS: What are the Disadvantages of NADEX Trading?

    It’s hard to find a weakness in NADEX’s trading platform or client services.

    They have the most reputable and trustworthy binary option provider you will find. They are fully regulated by one of the strictest financial watchdogs in the world, and they are optimal for U.S. based traders. However, if you are used to the European style binary option model, you might have a few difficulties transitioning to NADEX. Here, the options offered are based on real exchanges, and strike prices will vary based upon market pressure. For those used to the European model, this can take some getting used to.

    In the big picture, this is a small issue, and it’s one that you will easy compensate for if it might apply to you. Using their demo account trading platform will help you to get a better feel for the differences between NADEX and some of the other brokers that you might have used in the past.

    They also do not have the same sheer volume of assets available for trade that some of the European brokers have. However, most traders will never find this to be an inconvenience.

    CONCLUSION: IS NADEX A SAFE CHOICE?

    If you’re based in the U.S., NADEX is the way to go. Nadex is the best binary options brokers in USA. Don’t forget that binary options trading is risky at all times. As a trader, your job is to try to alleviate some of that risk by making educated decisions and use the right tools. Knowing how to use the platform and the specific types of trades that you will be making will help you to reduce some of that risk and improve your odds of making money.They are the only fully regulated and 100 percent legal binary options exchanges for U.S. traders to use. They have a strong and safe platform, and they have a low cost of entry. The fact that NADEX is one of the few brokers that is not on our binary option blacklist is also a strong indicator that this broker is serious.

    Using a safe broker/exchange is one of the easier choices that you can make when it comes to these choices, and although there will still be risk and a chance for you to lose your money no matter where you trade, U.S. traders are making the right choice when they go with a secure and fully regulated company like NADEX.

  5. Your capital is at risk
North American Derivatives Exchange, Inc
NADEX is regulated by CFTCNADEX
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CFTC