US binary options exchange Nadex, founded in 2004 and acquired in 2022 by Singapore-based Crypto.com from IG Markets, presents its proprietary trading platform and mobile app. Traders got access to binary options, call spreads, and knockouts, as Nadex grew into the most dominant binary options broker in the US under the leadership of IG Markets.
IQ Option originated in the now-defunct international binary options scene but transitioned to CFD trading. Nearly 50 million traders use IQ Option and request 20+ million monthly withdrawals based on its claims. Like Nadex, IQ Option traders get a proprietary web-based trading platform and user-friendly mobile app.
We have conducted an in-depth review of Nadex and IQ Option to determine which one presents the better overall choiceand which traders will benefit the most at either broker.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Nadex versus IQ Option - Verdict
United States Cyprus CFTC N/A 2004 2013 Market Maker Market Maker $0 $10 N/A Proprietary platform, Web-based Proprietary platform N/A 1.2 pips ($12.00) N/A 1.8 pips ($18.00) N/A $0.06 N/A $0.79 $2 round trip per contract N/A N/A Visit Website Visit Website
Features and Platforms
N/A N/A N/A N/A N/A N/A Visit Website Visit Website
Noteworthy:
Algorithmic trading and research are unavailable at both brokers, who cater primarily to beginner traders, while IQ Option offers social trading.
Available Markets
N/A N/A Visit Website Visit Website
While the asset selection at Nadex and IQ Option remains limited, the former provides trading choices and flexibility based on expiry times. The latter presents beginner traders with sufficient trading instruments and better cross-asset diversification. Nadex takes the lead as its asset selection caters to its core market better versus IQ Option.
Typical Spreads and Fees
N/A 1.2 pips ($12.00) N/A 1.8 pips ($18.00) N/A $0.06 N/A $0.79 N/A $117.47 $2 round trip per contract N/A N/A $10 per month after 12 months if account funded N/A Visit Website Visit Website
Trading costs at both brokers are competitive. While Nadex does not list spreads, the minimum tick value begins from $0.25 per spot Forex contract, $1.00 for knock-out options, and $1.00 for call spread contracts, plus $1.00 per contract. IQ Option offers commission-free spreads from 0.3 pips or $3.00 per 1.0 standard lot.
Security and Trust
United States Cyprus CFTC N/A N/A 247/14 1 1 Visit Website Visit Website
Nadex and IQ Option segregate client deposits from corporate funds, and the latter offers negative balance protection. Nadex has a clean NFA regulatory record and exceptional corporate ownership. IQ Option caters to all non-EU traders from its unregulated but duly registered subsidiary out of St. Vincent and the Grenadines.
Nadex vs IQ Option – 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 |
IQ Option
| Pros | Cons |
| Large trading community approaching 50 million traders | Limited asset selection |
| A user-friendly trading platform for manual traders | Limited deposit and withdrawal options |
| Low trading costs with commission-free spreads as low as 0.3 pips | No algorithmic trading |
| Respectable choice of cryptocurrency CFDs |
US-based binary options traders get an industry-leading provider in Nadex, providing low-cost trading instruments. The asset selection remains limited, but each asset has dozens of expiry times. IQ Option excels with its trader base, making it a leading social trading broker with low costs, but trails Nadex with its core product and services portfolio for its core trader base.
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