Comparison
Nadex versus IQ Option

Nadex versus IQ Option

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


Headquarters	United States	Cyprus
Regulators	CFTC	N/A
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	2004	2013
Execution Type(s)	Market Maker	Market Maker
Minimum Deposit	$0	$10
Negative Balance Protection		N/A
Trading Platform(s)	Proprietary platform, Web-based	Proprietary platform
Average Trading Cost EUR/USD	N/A	1.2 pips ($12.00)
Average Trading Cost GBP/USD	N/A	1.8 pips ($18.00)
Average Trading Cost WTI Crude Oil	N/A	$0.06
Average Trading Cost Gold	N/A	$0.79
Minimum Commission for Forex	$2 round trip per contract	N/A
Islamic Account
Signals	N/A
US Persons Accepted?
Managed Accounts
	Get Started	Get Started

Features and Platforms


MT4
MT5
MT4/MT5 Add-Ons		N/A
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading		N/A
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:

Algorithmic trading and research are unavailable at both brokers, who cater primarily to beginner traders, while IQ Option offers social trading.

Available Markets


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

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


Average Trading Cost EUR/USD	N/A	1.2 pips ($12.00)
Average Trading Cost GBP/USD	N/A	1.8 pips ($18.00)
Average Trading Cost WTI Crude Oil	N/A	$0.06
Average Trading Cost Gold	N/A	$0.79
Average Trading Cost Bitcoin	N/A	$117.47
Minimum Commission for Forex	$2 round trip per contract	N/A
Withdrawal Fee		N/A
Inactivity Fee	$10 per month after 12 months if account funded	N/A
	Get Started	Get Started

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


Country of the Regulator	United States	Cyprus
Name of the Regulator	CFTC	N/A
Regulatory License Number	N/A	247/14
Regulatory Tier	1	1
	Get Started	Get Started

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.

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

Read full IQ Option Review

Read full Nadex Review

FAQs

Is Nadex legit?

Nadex is a legit broker, regulated by the CFTC, with a clean NFA track record and excellent corporate owners.

Can Nigerians trade with IQ Option?

IQ Option lists no restrictions on its subsidiary operating from St. Vincent and the Grenadines and accepts Nigerian traders.

Does IQ Option pay withdrawal requests?

IQ Option honors client withdrawal requests and receives 20+ million monthly, per its claim.

Is Nadex a good broker?

Nadex offers US-based binary options brokers with an industry-leading product and services portfolio. Traders also benefit from low trading costs, making Nadex an overall good binary options broker.

Does Nadex pay out?

Nadex executes all withdrawal requests within a reasonable timeframe, as evident by its clean NFA track record.

What is the minimum deposit for Nadex?

The minimum deposit at Nadex is $250, higher than many international competitors, but within a reasonable range, especially for US-based brokers.