Nadex versus IG Markets

Singaporean-owned, US-based Nadex established itself as the leading binary options broker. Besides binary options, trades get knock-out options and call spread contracts from a proprietary trading platform, which is also available as a mobile app, ideal for millennial and GenZ traders.

IG Markets, the former owner of Nadex, presents US-based clients with a competitive Forex trading environment for US standards, which trail its international offering. Traders get an excellent choice of trading platforms, including MT4, ProRealTime, and the proprietary IG Markets web-based alternative.

Educational content for beginners is available at both brokers, where IG Markets presents higher quality material. IG Markets also provides trading signals and alerts.

I have conducted an in-depth review of Nadex and IG Markets 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 IG Markets - Verdict

Headquarters	United States	United Kingdom
Regulators	CFTC	FCA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	2004	1974
Execution Type(s)	Market Maker	Market Maker
Minimum Deposit	$0	300€
Negative Balance Protection
Trading Platform(s)	Proprietary platform, Web-based	MetaTrader 4, Proprietary platform
Average Trading Cost EUR/USD	N/A	0.9 pips
Average Trading Cost GBP/USD	N/A	1.4 pip
Average Trading Cost WTI Crude Oil	N/A	$0.03
Average Trading Cost Gold	N/A	$0.30
Retail Loss Rate	N/A	Undisclosed
Minimum Raw Spreads	N/A	Not applicable
Minimum Standard Spreads	N/A	0.8 pips
Minimum Commission for Forex	$2 round trip per contract	Commission-free
Islamic Account
Signals	N/A
US Persons Accepted?
Managed Accounts
	Get Started	Get Started

Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading
DOM?
Guaranteed Stop Loss
Scalping	N/A
Hedging	N/A
One-Click Trading
OCO Orders	N/A
Interest on Margin	N/A
	Get Started	Get Started

Noteworthy:

The absence of algorithmic trading at Nadex is notable, but its options selection caters well to this niche sector. IG Markets remains a leading Forex broker.

Available Markets

Currency Pairs
Cryptocurrencies
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds
ETFs
Options
Futures
Synthetics
	Get Started	Get Started

Neither Nadex nor IG Markets US offers traders a broad-based asset selection. While Nadex only maintains eleven currency pairs with dozens of expiration times, it adds four commodities, eight indices, and fifteen event-based options. Unlike its UK-based parent company, IG Markets US is exclusively a Forex broker offering traders 77 currency pairs.

Typical Spreads and Fees

Average Trading Cost EUR/USD	N/A	0.9 pips
Average Trading Cost GBP/USD	N/A	1.4 pip
Average Trading Cost WTI Crude Oil	N/A	$0.03
Average Trading Cost Gold	N/A	$0.30
Average Trading Cost Bitcoin	N/A	$90
Minimum Raw Spreads	N/A	Not applicable
Minimum Standard Spreads	N/A	0.8 pips
Minimum Commission for Forex	$2 round trip per contract	Commission-free
Deposit Fee	N/A
Withdrawal Fee
Inactivity Fee	$10 per month after 12 months if account funded	$12 per month after 24 months
	Get Started	Get Started

Rather than providing spreads, as a binary options broker, Nadex lists minimum tick values. Spot Forex contracts have a minimum tick value of $0.25, knock-out options, and all spread contracts $1.00. Nadex also charges $1.00 per contract. IG Markets has minimum spreads of 0.8 pips or $8.00 per standard lot.

Security and Trust

Country of the Regulator	United States	Australia, Bermuda, Switzerland, Cyprus, Germany, Japan, New Zealand, Singapore, United States
Name of the Regulator	CFTC	FCA
Regulatory License Number	N/A	195355, 378/19, 10148759, confirmed, but no regulaary license number, F001780, 41393, 1489, unconfirmed, 220440, 18923, 0509630, 54814
Regulatory Tier	1	N/A
	Get Started	Get Started

Nadex and IG Markets maintain an equally safe, secure, and trustworthy trading environment for clients. Both have a clean NFA regulatory track record, and both parent companies remain industry leaders. IG Markets does not accept traders from Arizona and Ohio, and an investor compensation fund is missing at both brokers.

Nadex vs IG Markets – 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

IG Markets

Pros	Cons
Cutting-edge trading platforms with full support for algorithmic trading	Limited funding options
Forex traders get a broad choice of currency pairs
Acceptable trading costs with a volume-based rebate program
Excellent research, education, and trading tools

Nadex remains the leading US binary options broker, catering well to this niche market, but IG Markets is overall a more competitive choice. IG Markets features three cutting-edge trading platforms, supports algorithmic trading, and has a broader but less diversified asset selection. Beginner traders get educational content at both but higher quality at IG Markets, which also publishes excellent research, including trading signals and alerts.

You might also be interested in reviewing the below broker comparisons:

• Nadex vs Robinhood
• Nadex vs IQ Option
• Nadex vs Forex.com
• IG Markets vs ActivTrades
• IG Markets vs SAXO Markets
• IG Markets vs Admirals

Read full IG Markets Review

Read full Nadex Review