It has been a long time coming but ThatSucks.com (former BinaryOptionsThatSuck.com) has finally been able to put its stamp of approval on a trusted, regulated, binary options broker for US citizens. Yes my friends, NADEX has finally proved to us that it is serious about providing the best trading for US citizens. If you are not familiar with NADEX, the North American Derivatives Exchange, it is one of only two US CFTC regulated binary options brokers legal for US citizens to trade on and the only one worth using at this time.
The difference between NADEX and the off-shore broker, aside from legality and regulation, is who you trade with. When you trade at an offshore broker you are making a bet with the house and not other traders. This means that offshore brokers make money when you lose and creates a major conflict of interest. NADEX is an exchange; this means that they are there to connect you with other traders so all your trades are made with another trader, not the house, alleviating any conflict of interest. They make their money through transactions fees which can be as low as $0.90 per trade with a max of $9.00.
Read the Complete NADEX Review by Martin Kay
Signing Up and Starting to Trade the NADEX
Signing up for an account is easy, but not quite as easy as with an off-shore broker… but this is a good thing. An offshore broker will push you into an account, get you to deposit as much money as they can, as fast as they can, with or without proper documentation, offer to trade your account for you and then leave you hanging when you lose. At NADEX the account representatives are there to help you, not convince you to deposit the rent money and they are not there to offer trading advice, tips or to manage your account.
The first thing to do is to register on the platform. After that you will have to contact the exchange and speak to a rep before you are able to make a deposit. They will get you to send in the appropriate proofs of ID and then submit your request for approval, which is the part that takes the most time. If you have all your materials ready before you start the process it is possible to get trading within 24 hours. Deposits can be made by wires, ACH or debit cards: debit cards are the preferred and quickest method. The minimum deposit to open an account is only $100, after the first you can add as much or as little as you’d like and withdrawals are not limited to the initial amount like they are when using a credit card with an off-shore broker.
Trading at NADEX is a little more complicated than standard EU style options but over the course of the past few years steady progress on multiple fronts has resulted in a broker that not only meets the requirements of regulators but the needs and wants of traders as well. The two areas with the most improvements are the asset list and the expiries. Assets include all the top forex pairs, US indices and indices from the EU and Asia, commodities like gold, silver and oil and even events like the weekly jobless claims numbers. Expiries include short 5 minute and 20 minute, intraday, end of day and end of week. Check out the Guide to Trading NADEX.
Benefits of Using NADEX
The most obvious benefit of using NADEX is that it is completely legal and safe for US traders. After that safety of funds is top, US traders have no worry the broker will defraud them and all monies are safely held in segregated accounts, in US banks, and subject to third party oversight. Additionally, there is no fear that accounts will be closed, or access to trading will be cut off like there is when US traders are using an off-shore based broker.
Other benefits include flexibility of trading, pay outs and demo trading. In terms of flexibility, options have set expiration times just like off-shore binary options but unlike the off-shore style NADEX options can be closed at any time for any reason with no “windows” or other limitations. In terms of payouts they can run as high as 500% for standard high/low trading with an average payout near 100% for at the money options, much higher than the 70% to 80% paid by most off-shore brokers.