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.

Headquarters
United StatesUnited Kingdom
Regulators
CFTCFCA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
20041974
Execution Type(s)
Market MakerMarket Maker
Minimum Deposit
$0300€
Negative Balance Protection
Trading Platform(s)
Proprietary platform, Web-basedMetaTrader 4, Proprietary platform
Average Trading Cost EUR/USD
N/A0.9 pips
Average Trading Cost GBP/USD
N/A1.4 pip
Average Trading Cost WTI Crude Oil
N/A$0.03
Average Trading Cost Gold
N/A$0.30
Retail Loss Rate
N/AUndisclosed
Minimum Raw Spreads
N/ANot applicable
Minimum Standard Spreads
N/A0.8 pips
Minimum Commission for Forex
$2 round trip per contractCommission-free
Islamic Account
Signals
N/A
US Persons Accepted?
Managed Accounts
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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
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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
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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/A0.9 pips
Average Trading Cost GBP/USD
N/A1.4 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/ANot applicable
Minimum Standard Spreads
N/A0.8 pips
Minimum Commission for Forex
$2 round trip per contractCommission-free
Deposit Fee
N/A
Withdrawal Fee
Inactivity Fee
$10 per month after 12 months if account funded$12 per month after 24 months
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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 StatesAustralia, Bermuda, Switzerland, Cyprus, Germany, Japan, New Zealand, Singapore, United States
Name of the Regulator
CFTCFCA
Regulatory License Number
N/A195355, 378/19, 10148759, confirmed, but no regulaary license number, F001780, 41393, 1489, unconfirmed, 220440, 18923, 0509630, 54814
Regulatory Tier
1N/A
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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 appLimited deposit and withdrawal options
Educational content for beginner tradersLimited choice of trading instruments
Trustworthy reputation now under the corporate ownership of Crypto.comAlgorithmic 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:

FAQs

Does IG own Nadex?

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IG Markets owned Nadex from 2007 until March 2022 before selling it to Crypto.com.

Is IG's trading platform any good?

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The IG Markets proprietary trading platform is a highly competitive alternative to industry-leader MT4 or ProRealTime, featuring cutting-edge trading tools for manual traders.

Is Nadex a good platform?

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Nadex offers options traders the necessary infrastructure to trade but only caters to manual traders. Algorithmic trading is notably missing, and Nadex relies on its mobile app and a millennial and GenZ client base.