Company Overview

Binary options are based on a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Known and well-defined profit and loss limitations make binary options attractive to experienced traders and newcomers to the financial markets.

Founded in 2004, the North American Derivatives Exchange, or Nadex, is a Chicago-based financial exchange specializing in short-term binary options, knock-outs, and call spreads. Acquired by in March 2022, Nadex is regulated by the Commodity Futures Trading Commission (CFTC), and funds are held in segregated accounts in U.S. banks.

  • Wide selection of binary options and spreads

  • Low fees and minimums

  • A good selection of educational content, including videos and webinars

  • Traders accustomed to European CFD brokers may find Nadex binary options a bit more complex

  • No bonuses or promotions

  • Research reports and tools are limited

Pros Explained

Wide selection of binary options and spreads: Nadex customers can trade on stock indices, forex markets, commodities, cryptocurrencies, and macroeconomic events.

Low fees and minimums: Entry and exit fees of $1.00 per binary options contract, call spread, or knock-out contract. Account setup and deposits are free. Additional fees are charged for wire transfers or returned deposits.

Educational content: Nadex's website offers free webinars, topical information, and blog posts to help investors navigate transactions.

Cons Explained

Nadex trading may be complex for CFD traders: Contract for differences (CFD), permitted outside of the United States, is a contract where the buyer must pay the seller the difference between the current value of an asset and its value at the contract time. CFDs are banned in the U.S. by the Securities and Exchange Commission (SEC). Nadex is a regulated platform and may prove complex for CFD traders.

No bonuses or promotions: Nadex does not offer free trades or bonus trading. The website has a free demo for new investors.

Research reports and tools are limited: Nadex lacks broad-based research and analysis on individual securities and offers no third-party research tools. Investors can register for ongoing webinars that include live technical analysis and market insights.



Nadex is a regulated financial exchange for buyers and sellers and does not take positions in any markets. Nadex is designated by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market and Derivatives Clearing Organization. Funds on deposit with Nadex are held in segregated bank accounts at BMO Harris Bank and Fifth Third Bank and are never commingled with Nadex operational funds.

Nadex's website is transparent in its product offerings, markets, trading platform, and pricing structure. The firm's FAQ page covers questions about accounts, funding and withdrawal, Nadex trading platforms, and trading on Nadex. All Nadex contracts have limited risk with high transparency. The maximum profit and loss are displayed on each order ticket before you confirm the trade. You can never lose more than the maximum risk collateral in your account on the trade.

Desktop Experience


Nadex relies on a proprietary single web page desktop experience. The trading platform runs on any PC or Mac with a modern web browser and Internet connection. A free demo account starts with a simulated $25,000 balance. Open an account and deposit funds via debit card, ACH, wire transfer, or paper check. Investors click on any symbol to open an easy-to-use order ticket that supports limit and market orders.

The trading platform is basic but intuitive for trading binary options and spreads. The charts are customizable, and users can switch between charting intervals and chart types. A small selection of technical indicators, including Average True Range, Bollinger Bands, Moving Average, and RSI, plus drawing tools, including Elliott, Fibonacci, and Gann, are available.

Crude Oil Binary Options Desktop

Mobile Experience


NadexGO is a mobile app that offers access to Nadex's full range of products with account management tools, real-time direct market access, and full charting and technical analysis features. You must toggle between the chart and order entry ticket, but NadexGO offers the same user experience as the desktop version on a smaller scale.

Crude Oil Binary Options Mobile

Research Tools and Insights


The website lacks broad-based research and analysis on individual securities with no third-party research tools. Ongoing webinars include live technical analysis and market insights. A news section features timely market commentary, including analysis of specific commodities, currencies, or sectors.



Nadex aims to instruct users on binary options, knock-outs, and call spreads and how they work. Nadex makes them easy to understand and teaches how to trade them. The company provides free trading courses and other resources like e-books. From an introduction to binary options to advanced guidebooks on trading volatility and trend direction, e-books, online courses, and videos provide traders with a complete reference library.

Special Features

The Nadex platform is built to trade binary options and spreads, so its features focus on facilitating those trades. Since Nadex is an exchange and a broker, free streaming market data is directly from the exchange. The price ladder charts let you place orders from a chart, and you can toggle from selecting your markets to chart analysis to order placement.

Nadex's binary options and spread contracts have floor and ceiling levels, and your maximum profit or loss is known in advance. The maximum possible profit and loss are displayed on the order ticket before you confirm the trade, and you can never lose more than this amount.

Investment Products


Nadex is a CFTC-regulated exchange where U.S. and international members can legally trade binary options and spreads. As a Nadex customer, you can trade binary options, knock-outs, and call spreads on stock indices, Forex pairs, commodities, and economic events.

Commissions and Fees


Nadex specializes in binary options and spreads trading, and its fees are calculated per contract at $1.00 each. You can exit a trade in two ways: placing a second, opposite trade or letting the contract expire.

Customer Support


Nadex members can contact customer support by phone from 3:00 p.m. ET Sunday through 5:00 p.m. ET Friday. Prospective customers can speak with a Nadex Account Specialist from 7:00 a.m.–8:00 p.m. ET Monday through Thursday and 7:00 a.m.–4:15 p.m. ET Friday.

The website lists a toll-free number for U.S. callers and a dedicated line for international callers. You can chat with Nadex from its website or email customer service at

Trading hours start at 6 p.m. ET of the previous day and run overnight until 5 p.m. Monday through Thursday and until 4:15 p.m. ET on Friday. Nadex pauses trading from 5–6 p.m. ET for exchange maintenance.

Final Verdict

Nadex is an excellent platform for short-term traders who want to engage in binary options, knock-outs, and call spreads using a U.S.-based, fully regulated exchange. Contracts cover a range of forex pairs, commodities, stock indices, unique products such as Bitcoin, and the opportunity to bet on macroeconomic events such as the Fed funds rate. For new investors, the educational resources are extensive and well-designed. Nadex is best suited for active traders interested in day trading and placing bets across various products.

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