Is Trading on Nadex Right For You?
If you follow along with my trading articles, you probably have noticed I have been writing quite a bit about Nadex lately. This is because Nadex is by far one of the best all-around exchanges out there. Having had a chance to delve into the site and explore all it has to offer in-depth, I feel like this is a great choice for pretty much anyone.
That having been said, you may be wondering whether Nadex is the best choice for you. Obviously the only person who can answer that question is you, but maybe I can shed some light.
What Kind of Trader Are You?
Before you can figure out if Nadex is a good fit for you, it is a good idea to ask yourself why you are trading.
Most binary options traders are going to fall somewhere along a simple spectrum of motivation.
Basically, at one end of the spectrum, we have “trading for fun.”
At the other end of the spectrum, we have “trading for serious money.”
Where you fall on the spectrum of trading motivation is going to determine what you are looking for in a binary options broker. Obviously no matter why you are trading, you are going to want to trade with a company that is transparent and trustworthy. Nadex certainly fits that bill, but so do a number of other sites on our recommended brokers list.
So I want to talk more about the features and structure of Nadex from the perspective of both casual and dedicated traders. This may help you figure out whether or not to make a deposit.
Most people who are attracted to the world of binary options are only interested in trading casually. They are looking for entertainment and maybe a little extra money. There is a big crossover here with the online casino community.
Traders who fit this general description are looking mostly for simplicity and ease-of-use along with big bonuses. Obviously if you are trading for fun, you do no want to go out of your way to learn something overly complicated. As to bonuses, they add to the thrill.
Nadex unfortunately offers neither of these. The trading interface is significantly more complicated than the SpotOption white-label platforms that otherwise dominate the binary options world. Trading on Nadex is not as simple as picking “High” or “Low.” You cannot learn to trade on Nadex in five minutes. Nadex tickets are not exactly complicated, but they aren’t intuitive either. It takes time, effort, and practice to learn how to set up and manage your trades.
For this reason, Nadex may not be ideal for casual traders. If you want trading to be easy, it is best to choose a different broker from our recommended list.
Now if by any chance you have experience trading on Forex, you might still want to consider Nadex, even if you are trading casually. Why? You may not find the tickets confusing at all. Nadex tickets look a lot like FX tickets and work much the same way. So you may actually find it a breeze to learn to trade on the site.
As to bonuses, Nadex does offer them, but they take the form of free trading days. This is actually very generous, and technically it is more useful than “free money.” There are no turnover requirements or strings attached, which is excellent. Then again, many casual traders who are essentially here to gamble are not looking for these types of bonuses. They are looking for something like, “$500 free when you make your first deposit!” Nadex does not offer that.
What if you are not trading to gamble? What if you are trading because you are serious about making money? Maybe you are even trying to make a living trading binary options, or hope to do so someday.
In that case, I would absolutely recommend trading on Nadex.
Well, the two “problems” that I talked about above for casual traders are not applicable in your case. Yes, Nadex tickets take some work to understand, but that effort is worth it. You are already committed to putting in a lot of effort to learn how to trade profitably. You know that trading is not as easy as it looks on SpotOption platforms. It takes a lot more thought than picking “High” or “Low.”
I have put together a thorough guide to understanding Nadex tickets. Open a demo account on Nadex, go through the guide, and experiment with some fake trades on the platform. You will learn the ropes.
Basically, the initial “complexity” of trading on Nadex would be a barrier for you if you were only trading for fun. But because you are willing to dedicate yourself, it should not present a major obstacle. It is just one of many new things you will have to learn.
The bonus issue also should be irrelevant to you. The thought of getting free money to trade may sound great, but there are a lot of strings attached to that “free” money. It can actually disrupt your money management plan and make it hard to withdraw.
So the fact that Nadex does not offer these big bonuses should not faze you. And you should be able to appreciate that what they do offer you ultimately has more value.
On top of all that, Nadex offers the following outstanding advantages:
Nadex is regulated and trustworthy. As one of the few CFTC-regulated binary options exchanges in existence, Nadex keeps all customer funds segregated and operates as a real exchange. Most binary options brokers assume the other side of your trades. Nadex does not. Instead, you are matched up with another customer who is taking the opposing trade. That means that Nadex does not profit off of your losses. You are charged a small fee for each of your trades, which is how the company stays in business. Other brokers are motivated to work against you; Nadex is rewarded so long as you keep trading, so it is in their interest to help you succeed.
An unlimited demo account. This is one of the few binary options trading sites which allows you to experiment for as long as you want on a demo account. You do not even have to deposit any money to get access. Just register! A demo account is actually essential if you plan to trade for a living. Other sites treat it as optional. Nadex is gives you what you really need to be successful.
An in-depth learning center. Included are educational courses, videos, webinars, trade examples, handbooks, a glossary, and Frequently Asked Questions.
Awesome charts. This is one of the few binary options exchanges which offers you fully-functional charts. You can maximize them to fill your screen, and you can plan your trades with dozens of indicators and drawing tools. You can even save templates for future use. Read all about Nadex charts.
Early Close. Lots of binary options sites offer this, but they often restrict its function. They only let you use it as a take-profit or as a stop-loss, but not as both. On Nadex, you can use it for either purpose. Get out at breakeven or a partial profit to avoid a loss, or get out at a partial loss to prevent an even bigger drawdown. Many trading systems depend on this feature.
Trade economic events. On Nadex, you can trade the usual assets: commodities, currencies, stocks, and indices. Nadex actually has three economic events set up as tradable assets: the Weekly Jobless Claims, the Fed Funds Rate, and the Nonfarm Payroll Report. This is extremely cool, since you can profit simply by guessing correctly what will happen with the events. You do not need to correctly guess the market reaction! This is an amazing opportunity. Read more about it here (article will be posted and linked).
These are all excellent features you are not going to find just anywhere.
This is why if you are a serious trader, I strongly suggest that you consider signing up for an account with Nadex. There is no point in messing around with unregulated, fly-by-night brokers. Yes, it will take you a little extra time to learn your way around the platform, but that is what the demo account is for. Be sure to check out our other articles on Nadex to learn even more about what this excellent US exchange has to offer!