With all the shady brokers out there, why do so few US traders go with NADEX?

peso

Whats up with this? I am just now researching binary trading and I see so many pumped up recommends for all these overseas brokers, then all this warning about scams, poor withdrawls, etc. If NADEX is US based and US regulated, why do so few recommend or use them?

lotzofbotz

They are no better really, full of market makers with markup on spreads and commisions, trying to pretend to be binary options but really are a sudo vanilla options. To trade them you have to use a whole other set of tools imo. You also better understand the GREEKS in order to trade them profitably. Try them out in demo first and share your experience/results. Good luck!

gatsby2016

They are open to US, Canada, and Mexico only. I have personally used them, and there are pluses and minuses about it

THE GOOD: 1.They are regulated by the CFTC of the United States, meaning it is highly unlikely you would ever be scammed by the broker itself; putting money in nadex (without trading) is almost as safe as putting money in your local bank, which can't be said about the majority of other brokers

2. You can leave trades early at a partial loss or partial gain before expiry; generally it will be a partial gain if it is ITM and direction in your favor, and vise versa,

3. You can in some circumstances risk less than you can gain, usually only if the contract is out of the money.

4. Very exotic options, such as betting on "nonfarm payrolls" and other "events"

5. If you make significant income with them, taxation of this income is a simpler process, as they do issue special 1099 forms to help you report taxes properly; European binary options create a strange situation where you still have to declare taxes because it is income, but they haven't been written into our tax code.

THE BAD:

1.Technically, you can enter and exit trades whenever you want, however, generally, for the most part, trading is only effective in hourly to weekly trades, (though sometimes market conditions exist in which you can effectively trade in less than those time frames)

2. Less flexibility to enter the market at ideal payouts; to get close to a 50/50 (70-100% payout compared to traditional brokers) The price needs to be near one of the contracts offered, meaning you can't always get the price you want exactly when you want it.

3. Less options then some brokers, varies broker to broker,


OTHER
As far as their "commissions" most people consider these a bad thing. Okay, yes they do have commissions where/as other broker's don't have any, but remember this; most other brokers make money off of losing trades and set their payouts to, overall in the long run, be in their advantage. In Nadex, you are trading against other traders, not the broker; their trades (check website to confirm they could change) cost $0.9 to enter, and $0.9 to exit (unless you keep the trade and it loses, in which only entry is charged) and cap out after $9 per transaction. Considering this is less than $2 per $100
that was traded between 2 traders, this is so small that it's barely any problem in my opinion. Until I heard of Nadex, I remember thinking to myself, "I wish they made a broker that just charged small flat fees instead of profiting immensely off of losing trades".............Welcome to Nadex! Nadex doesn't lose money off of profiting traders, which is why they are happy to retain winning traders and give them their entitled winnings

Also, they don't have any affiliate program for referrals that i know of, so on a lot of binary options websites (that are affiliate money makers) you won't see them recommending NADEX because it is not in their most profitable interest.

If you are going to try Nadex, try the demo account before investing any money at all so you understand how it really works


(anything here is not to be taken as investment advice, inaccuracies may still exist in this post)

Doutdoor

Hello,

This is my 1st post here in this forum. I learned about NADEX through a trading service by the name of Rockwell Trading. I was intrigued by the information and resources they had on Binary Options. So I went to the NADEX site, set up a demo account and have started to do some simulated trading. So far I like what I see. As mentioned in the posts above, I really like the fact that they are based and regulated in the U.S. The platform is user friendly and you can trade daily, weekly or hourly intervals on the indices, commodities, forex etc., and their fixed rates seem reasonable on entry and payouts.

I did wonder why there was no mention of NADEX at all here, and why it wasn't one of the recommended Brokers. It seems like the safest choice in the ocean of offshore brokers that I see advertised. The NADEX charting is mediocre but it does have all of the indicators that I like to use.

BTW, as coincidence would have it, I was doing a search on Binary Options (which is how i came across BinaryOptions.net) and came across a scam article on Rockwell Trading regarding their binary options service. In fact the guy who created the site provided a current list (Sept. 14) of binary scam brokers. NADEX was not one of them. I can provide a link to this list if anyone wants it.

Thanks

Doutdoor

Hello,

This is my 1st post here in this forum. I learned about NADEX through a trading service by the name of Rockwell Trading. I was intrigued by the information and resources they had on Binary Options. So I went to the NADEX site, set up a demo account and have started to do some simulated trading. So far I like what I see. As mentioned in the posts above, I really like the fact that they are based and regulated in the U.S. The platform is user friendly and you can trade daily, weekly or hourly intervals on the indices, commodities, forex etc., and their fixed rates seem reasonable on entry and payouts.

I did wonder why there was no mention of NADEX at all here, and why it wasn't one of the recommended Brokers. It seems like the safest choice in the ocean of offshore brokers that I see advertised. The NADEX charting is mediocre but it does have all of the indicators that I like to use.

BTW, as coincidence would have it, I was doing a search on Binary Options (which is how i came across BinaryOptions.net) and came across a scam article on Rockwell Trading regarding their binary options service. In fact the guy who created the site provided a current list (Sept. 14) of binary scam brokers. NADEX was not one of them. I can provide a link to this list if anyone wants it.

Thanks