North American Derivatives Exchange (Nadex) revealed that it experienced a growth of 64% in the total number of trades executed. The period of comparison is in between the first quarter of 2016 and the first quarter of 2015.
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The same period also experienced an increase of 68% in the trading volume. Nadex was able to report about the growth despite the fact that binary options has received a lot of challenges around the globe. One of the factors that contribute to its growth is that it is regulated. In fact. Nadex is the first binary options exchange that was given the license to conduct its business in America.
Spreads are getting increasingly popular in Nadex and it accounts for 11% of the transactions. Four out of five trades are forex which proves that forex trading is popular in Nadex traders. The most popular forex currencies traded in Nadex are GBP, JPY and AUD. Nadex is convinced that the binary options product it offers is a good alternative to forex trading. According to Nadex, this is the reason why four out of five of the most traded assets on its platform are forex exchange.
<h2>What is Nadex?</h2>
Nadex is a licensed binary options exchange operated under a company called North American Derivatives Exchange. Nadex, which was formerly known as HedgeStreet, was founded by John Nafer in 2004 and operates a headquarter in Chicago. It is the only broker in the USA that allows US traders to trade binary options.
Nadex is CFTC (Commodity Futures Trading Commission) licensed and it complies to the regulations outlined by the government in USA. CFTC is the sole regulator for binary options brokers in the USA.
The most popular contracts that are traded in Nadex include US 500, CBOT® E-mini Dow® Futures and CME® E-mini NASDAQ 100 Index® Futures. Crude oil and gold are the two most popular commodities in Nadex. The price of the US 500 is influenced by CME E-mini S&P 500 Index Futures and the fluctuation of the EUR/USD rates.
Traders who joined Nadex get to execute trades on a powerful trading platform that is free to use. You can access the platform on your web browser. The trading platform features real time charts that offers up to date price information. Nadex provides a variety of options including forex, bitcoins, indices, natural gas, silver, corn and etc. Traders have the opportunities to choose from hundreds of options on the platform. The platform does not show the return percentage but it shows a bid/offer price instead.
Nadex offers mobile apps to allow its traders to conveniently trade on their mobile devices. You will be able to access all the functions that are available in the web based platform in the mobile app. It is possible to deposit and withdraw funds from the mobile app. You can execute a new trade and monitor your trade through the mobile app. Nadex regularly upgrade their mobile apps to improve its functions.
Nadex handles the clients’ funds securely by depositing them at segregated accounts in two banks including BMO Harris Bank and Fifth Third Bank. Both of the banks where the clients’ funds are stored are local banks situated in the USA. Currently, Nadex only accept traders from the USA. Anyone who want to trade with Nadex can sign up for a free account at the broker site. After signing up for the account, you can decide whether to select trades or contracts. The trading account is completely customizable according to the needs of the traders.
Nadex has stopped accepting traders from Canada starting in the month of December last year. They also started to shut down the accounts that belong to Canadian citizens. This is in done in accordance to the ruling in the 13 provinces in Canada that do not allow binary options brokers to offer their services. The move shows that Nadex always make sure that its operations comply with the rules of the jurisdiction where its products are offered.
The only fee that you will be charged is the fee charged when you place a trade. The cost for each contract option is $0.90 and the minimum deposit in Nadex is $100. Demo trading account is available for anyone that want to learn more about the Nadex trading platform. To sign up for the demo account, you just need to provide basic information such as name, telephone number, and email. The demo account is preloaded with $25,000 of virtual money and it is only valid for a period of 2 weeks.
Traders can deposit via a number of methods including debit card, bank wire, and check. Nadex has provided a lot of helpful materials such as webinars, handbooks and video tutorials. Nadex offers 24/7 customer support and customers can contact them through a toll free telephone number.