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

Headquarters	United States	United States
Regulators	CFTC	ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	2004	2001
Execution Type(s)	Market Maker	Market Maker
Minimum Deposit	$0	$100
Negative Balance Protection
Trading Platform(s)	Proprietary platform, Web-based	MetaTrader 4, MetaTrader 5, Proprietary platform, Trading View
Average Trading Cost EUR/USD	N/A	1.1 pips
Average Trading Cost GBP/USD	N/A	1.3 pips
Average Trading Cost WTI Crude Oil	N/A	$0.035
Average Trading Cost Gold	N/A	$0.63
Retail Loss Rate	N/A	73.00%
Minimum Raw Spreads	N/A	0.0 pips
Minimum Standard Spreads	N/A	0.8 pips
Minimum Commission for Forex	$2 round trip per contract	$5 per $100K
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:

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

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

Average Trading Cost EUR/USD	N/A	1.1 pips
Average Trading Cost GBP/USD	N/A	1.3 pips
Average Trading Cost WTI Crude Oil	N/A	$0.035
Average Trading Cost Gold	N/A	$0.63
Average Trading Cost Bitcoin	N/A	$60
Minimum Raw Spreads	N/A	0.0 pips
Minimum Standard Spreads	N/A	0.8 pips
Minimum Commission for Forex	$2 round trip per contract	$5 per $100K
Deposit Fee	N/A
Withdrawal Fee
Inactivity Fee	$10 per month after 12 months if account funded	$15 monthly after 12 months
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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

Country of the Regulator	United States	Australia, Canada, Cyprus, Japan, Cayman Islands, Singapore, United Kingdom, United States
Name of the Regulator	CFTC	ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA
Regulatory License Number	N/A	0339826,291, Undisclosed, 446717, 400/21, 25033, 345646, Undisclosed
Regulatory Tier	1	N/A
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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

Forex.com

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.

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

• Nadex vs Robinhood
• Nadex vs IQ Options
• Nadex vs IG Markets
• Forex.com vs FXCC
• Forex.com vs LiteForex
• Forex.com vs Markets.com

FAQs

Is Nadex better than Forex.com?

It depends on individual requirements and preferences. Nadex caters well to options traders, while Forex.com features a highly competitive Forex trading environment. Both brokers serve their core market extraordinarily well.

Does Nadex do Forex trading?

Nadex offers options, knock-out options, and call spread contracts on Forex.

Is trading with Nadex worth it?

Nadex offers the infrastructure and tools, but the outcome depends on traders and their strategies.