Nadex Scam

 

Heard rumors about a Nadex scam and are unsure if they are true?

Thinking about trading binary options with this broker but need more information?

Here you will learn the truth about this company, and discover if it actually offers the product you are looking for. Is it your chance for extra income, or a fraud you need to avoid?

Nadex Compared to other brokers

If you want to verify how safe and beneficial it is to invest with Nadex, the best strategy is comparing it to the leading brokers worldwide. Nadex has both advantages and flaws, and to understand those better, you need to know what are the best offers out there for you.

TopOption is fully regulated and therefore a safe destination for your financial investments online. One of the largest brokers globally, TopOption offers substantially assistance to new traders. Their learning center enables you to receive proper coaching from professional advisers, and among other benefits, you receive a cash welcome bonus and free signals service. It even gives you a free demo-account for you to test your trading strategies.  In every sense, TopOption has one of the most complete and profitable packages for you:

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RedWood Options, a large US-based binary options  broker, offers you a variety of educational tools. Traders have access to the largest library of trading videos, with more than  80 instructional vids, besides many tutorials, articles and a downloadable trading guide. Learn how to create trading strategies and use risk control management techniques with the help of tthe help of this professional broker, which give you considerably more tools than Nadex:

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GOptions offers a free signals service, as well as another important benefit that Nadex lacks: risk free trades. This gives you the opportunity to test your trading methods and experiment without risking any funds, while still receiving the full return if your trades are successful. With a focus on customer service and accessibility, GOptions’ customer experience has been constantly praised:
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Is Nadex Legit

Nadex is most certainly a legit company and one you can trust. Remember, they offer high-yielding investments, and those are always subject to a similar level of risk. Another important point to notice is that the type of financial derivative Nadex offers is probably not the one you have been looking for.

The type of binary options Nadex offers is similar, but ultimately different from common binary options, also known as digital options. This article will clarify what the differences are, but one thing is certain:

If you have heard about a new and exciting option type, that has become very popular and is attracting online traders worldwide, then  Nadex is not the destination for your funds.  Although it is not a scam, it is likewise not a regular binary broker.

Real binary options have a very simple premise: you can earn large sums of money very rapidly, but the risk is definitely high. Serious binary brokers are very transparent about this process, and more so, they give you tools and advice to improve your chances of success.

For that reason alone, choosing these serious and professional corporations over Nadex is a good move for your investment. There is only a handful of reliable binary brokers, and with them, you have a real opportunity to create profit and see results.

Nadex Binary Options

Nadex offers a totally different investment than do other binary brokers. To understand the differences, you need to be fully acquainted with binary options trading. Here we will clarify the main differences between the two types of investment:

Regular binary options are much simpler and involve three steps: choosing the asset, the amount you wish to invest, and then making your prediction. If your investment was $100, you will either an average net profit of $80 (and you will now have $180), or you will lose about 95% (you will be left with 5% of your initial investment).

With Nadex Binary options you also choose an asset, and of course, the amount you wish to invest. Yet the level of profit is much lower. Besides the lower return, each investment with Nadex is counted in pips of 1 dollar each, which carry with them a fee. While the regular digital option has no fees, with Nadex options can expect your profit to decrease in roughly another 7.5% as a result of such fees.

Nonetheless, the level of risk is similar to that of other binary brokers. You risk losing your entire investment, while your maximum profits are lower than those offered by the other companies. In that sense, it is clearly a disadvantage, but in no way is it a fraud. After all, it is a real investment. Nadex does not take your money away and it does give you an opportunity to earn and succeed. Of course, the questionable manner in which companies such as Cedar Finance explain market their product is wrong, but Nadex cannot be blamed for trying to highlight the benefits of their services, as opposed to the risks involved.

What is Nadex

Nadex stands for North American Derivative Exchange. This is a fancier name for the company formerly known as Hedge Street, an exchange site, that quite ironically, exchanged hands until finally being bought the IG group, a British based trading company. It was launched as early as 2004, but not as a binary options broker.
Initially it functioned solely as a derivatives or futures exchange, which allows clients to speculate, or hedge against market fluctuations. Eventually it incorporated this variation of binary options, which is just as risky, yet significantly less profitable, than the binary options you might be seeking.

Nadex does have one major advantage over other companies, in that it is fully regulated by the CFTC. Why does this broker have this privilege? Does it comply with legislation that other brokers ignore? The answer is simple: Nadex is simply offering a different, less attractive financial product. Nonetheless, most binary brokers are properly regulated by other financial institutions, such as the CySec in Europe.

Nadex Scam Summary

  • Nadex is not a scam. It offers a financial derivative which allows you to profit online.
  • Nonetheless, this derivative is not the one most commonly known as binary options.
  • Although they carry the same name, Nadex binary options are a totally different tool.
  • The binary options offered by Nadex have the same risk level as the more widespread options, while offering smaller gains.
  • Nadex is not a fraud, but all types of binary trading involve high risk an can result in loss.
  • If you want to profit from binary trading, invest with companies that operate with transparency and offer tools that will improve your chances and your skills.