Nadex - short for the North American Derivatives Exchange - is the CFTC-regulated exchange that offers innovative ways to participate in the forex trading market, and more. Providing access to binary options, call spreads, and knock-outs, Nadex features as one of the best forex brokers (opens in new tab) primarily for what it can offer the more experienced currency trader. Based in Chicago, Nadex is part of the North American unit of the FTSE 250 global financial services firm, IG Group.
Nadex review: Platform options
- Single trading platform
- Demo account for training
- Walk-through instructions
Nadex has its own trading platform which you can use once you've opened an account, and a companion mobile app. There's also a demo account available if you want to test the platform before signing up. The trading platform is easy to use, and even if you do find yourself confused, there's in-depth walk-throughs on the Nadex site, and video tutorials too, to help you navigate your way around. The minimum initial deposit is $250.
Once you've logged into your trading account, you simply select from the three different types of trading products, then one of the market classes, and go from there. You buy or sell, depending on what you think will happen in the particular market you've selected, and rather helpfully, the risk/reward for your chosen order is calculated and displayed with maximum potential loss and profit before you actually place it. It only takes a few clicks to get that first trade under your belt. Trading is possible 23 hours a day, five days a week, across any device.
Nadex review: Features
- Straightforward charges, no broker fees
- Hugely insightful guidance
- But only 11 trading pairs
Through Nadex, you can trade 11 currency pairs, with combinations covering the US Dollar, Euro, Australian Dollar, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, and Mexican Peso. With far fewer pairs available than elsewhere, if you're a forex trader looking for something different, Nadex may not be the best option for you. The number of technical indicators on offer at Nadex is also slightly limited compared with other forex brokers, and is worth considering if you're hoping to conduct your research and make your trades all in the same place.
Nadex has no brokers and therefore no brokers fees, while account setup, deposits and withdrawals are free. Instead, as Nadex operates as an exchange, there is a $1 trade execution fee per contract per side for traded contracts. If you offset a trade position prior to expiration, then again there is a $1 trade execution fee per contract per side. For contracts held to expiration, there is a $1 exchange settlement fee per contract for only binary positions finishing in the money.
If you're new to forex trading, and the slightly different options that Nadex offers, then you needn't worry. The demo account can be opened quickly and allows traders to try out their skills and the platform with $25,000 in practice funds. The website includes a while host of investment resources to educate you about the forex market, including articles, webinars, blogs and courses. As mentioned already, there are step-by-step guides and videos to using the platform that can be easily found on the site too. Customer support is available by live chat, email and phone.
Should you use Nadex?
Nadex offers a slightly different route into forex trading, but don't let this put you off. While a great option for expert traders, novices are afforded plenty of educational material and a demo account to help them get up to speed too. The currency pair options might be limited compared with other brokers, and the approach a little different too, but Nadex still represents an excellent forex broker option for currency traders in the US.