Nadex versus Forex.com
Nadex is a US-based options exchange founded in 2004, part of Singapore-based Crypto.com since 2022 following its acquisitions from IG Markets. Forex.com is primarily a Forex broker established in 2001 and part of US-based publicly listed StoneX. Nadex offers traders its proprietary trading platform, also available as a mobile app. It established itself as the dominant options, call spreads and knock-outs broker in the US.
Forex.com is the largest MT4 broker based on active servers as of April 2019. It presents traders with its high-quality proprietary trading platform alongside MT4/MT5, charting and community services by TradingView, and SMART Signals. Active traders will benefit from a competitive pricing environment.
I have conducted an in-depth review of Nadex and Forex.com to determine which one presents the better overall choice and which traders will benefit the most at either broker.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Nadex versus Forex.com - Verdict
Features and Platforms
Features & Platforms | Nadex (visit site) | Forex.com (visit site) |
Headquarter: | US | US |
Established : | 2004 | 2001 |
Retail Loss Rate: | Undisclosed | 73.00% |
Regulation: | ||
Minimum Deposit: | $250 | $100 |
Demo Account: | ||
Managed Account: | ||
Islamic Account: | ||
Inactivity Fee | $10 monthly after 12 months | $15 monthly after 12 months |
Deposit Fee: | Third-Party | Third-Party |
Withdrawal Fee | Yes + Third-Party | Third-Party |
Funding Methods: | 2 | 2 |
MT4: | ||
MT5: | ||
cTrader: | ||
Proprietary Platform: | ||
Automated Trading: | ||
Social / Copy Trading: | ||
MT4/MT5 Add-ons: | ||
Guaranteed Stop Loss: | ||
Negative Balance Protection: | ||
Bonuses and Promotions: | ||
Unique Feature One: | User-friendly mobile app | Cutting-edge trading platforms |
Unique Feature Two: | Fixed trading costs | Low trading costs |
Broker Offers: |
Noteworthy:
Nadex remains a primary choice for options, catering well to beginners with a preference for mobile trading. Forex.com supports algorithmic trading and is better suited to spot Forex traders.
Available Markets
Available Markets | Nadex | Forex.com |
Currency Pairs: | ||
Cryptocurrency Pairs: | ||
Commodities and Metals: | ||
Indices: | ||
Equities: | ||
Bonds: | ||
ETFs: | ||
Options, Futures, and Synthetics: | ||
Maximum Retail Leverage: | 1:1 | 1:50 |
Maximum Pro Leverage: | 1:1 | 1:50 |
The asset selection at both brokers remains limited, but Nadex offers beginner traders and those with a focused strategy requiring few assets a straightforward and competitive trading environment. Forex.com offers a broad-based choice of currency pairs for US-based traders, gold, silver, and a handful of futures contracts. Neither broker offers in-depth diversification opportunities.
Typical Spreads and Fees
Typical Spreads & Fees | Nadex | Forex.com |
Minimum Raw Spreads: | Not applicable | 0.2 pips |
Minimum Standard Spreads: | Undisclosed | 0.6 pips |
Minimum Commission for Forex: | $1 per contract | $5.00 per round lot |
Commission for Equities: | Not applicable | Not applicablee |
Commission Rebates: | No | Yes |
Execution Type: | Market Maker | Market Maker / STP |
Nadex does not list spreads but minimum tick values, which commence at $0.25 per spot Forex contract, $1.00 for knock-out options, and $1.00 for call spread contracts, plus $1.00 per contract. Forex.com features a competitively priced commission-based cost structure with a volume-based rebate program for high-frequency traders.
Security and Trust
Nadex
Country of the Regulator | Name of the Regulator | License Number |
US | Commodity Futures Trading Commission & National Futures Association | NFA Number 0340344 |
Forex.com
Country of the Regulator | Name of the Regulator | License Number |
US | Commodity Futures Trading Commission & National Futures Association | NFA Number 0339826 |
Nadex and Forex.com segregate all client deposits from corporate funds, and Forex.com also offers negative balance protection. Nadex has a clean NFA regulatory record, but Forex.com shows 28 CFTC reparation cases, six NFA arbitration decisions, and three NFA actions. The corporate ownership of both brokers reflects a similar pattern. Crypto.com, the owner of Nadex, maintains a clean operational history, while StoneX, owner of Forex.com, has a history of malpractice and fines, despite being a publicly listed company.
Nadex vs Forex.com – Verdict
Nadex
Pros | Cons |
User-friendly mobile app | Limited deposit and withdrawal options |
Educational content for beginner traders | Limited choice of trading instruments |
Trustworthy reputation now under the corporate ownership of Crypto.com | Algorithmic trading unavailable |
Low trading costs for an options broker |
Forex.com
Pros | Cons |
80+ currency pairs and overall quality asset selection | Limited funding options |
High-quality proprietary web-based and desktop trading platform plus MT4/MT5 | 28 CFTC reparation cases, six NFA arbitration decisions, and three NFA actions |
Competitive trading costs for active traders | StoneX ownership casts a shadow |
Research, education, and quality trading tools |
Nadex offers US binary options traders an industry-leading product with few assets but dozens of contract expirations per instrument. It also maintains a low pricing environment and remains slightly ahead of Forex.com for its niche offering. Forex.com is a competitive Forex broker that fully supports algorithmic trading and features quality trading tools.
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