Nadex versus Robinhood

Nadex offers US binary options traders a domestic champion and unrivaled trading conditions. Founded in 2004 and built-up to its current form under IG Markets leadership, who sold the company to Crypto.com in 2022, traders get low-cost binary options, call spreads, and knockouts, from an exceptional management team.

Robinhood is one of the pioneers of commission-free trading in the US but has a questionable operational track record and supplements income with payment for order flow. It experienced explosive growth from 2020 through 2021 amid heightened controversy and criticism before losing clients. Traders at both brokers get a proprietary web-based trading platform and user-friendly mobile app.

We have conducted an in-depth review of Nadex and Robinhood 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 Robinhood - Verdict

Headquarters	United States	United States
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	$0
Negative Balance Protection		N/A
Trading Platform(s)	Proprietary platform, Web-based	Proprietary platform
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:

Neither Nadex nor Robinhood offer algorithmic trading, both cater primarily to beginner traders with a preference for mobile trading, and Robinhood features a branded debit card with weekly rewards.

Available Markets

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

The asset selection at Nadex remains limited in trading instruments but features dozens of expiry times. Traders get liquid assets, supporting focused trading strategies. Robinhood features a broader asset selection consisting of equities, ETFs, IPOs, options, gold, and select cryptocurrencies, offering better cross-asset diversification, but Nadex caters better to its core trader base.

Typical Spreads and Fees

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

Nadex offers binary options traders minimum tick values of $0.25 per spot Forex contract, $1.00 for knock-out options, and $1.00 for call spread contracts, plus a fee of $1.00 per contract. Robinhood has issues with trading cost transparency. While it advertises commission-free trading, it engages in controversial payment for order flow.

Security and Trust

Country of the Regulator	United States	United Kingdom, United States
Name of the Regulator	CFTC	N/A
Regulatory License Number	N/A	165998, 8-69188, 823590
Regulatory Tier	1	1, 1
	Get Started	Get Started

Nadex has a spotless NFA record and outstanding corporate management with an equally impressive history. Both brokers segregate client deposits from corporate funds. Robinhood is also a Financial Industry Regulatory Authority (FINRA), The New York Stock Exchange (NYSE), the NASDAQ, and the CBOE EDGX Exchange (CBOE EDGX) member. The Securities Investor Protection Corporation (SIPC) protects Robinhood clients up to $500,000 per net equity or $250,000 for cash claims. Traders should consider the controversy at Robinhood in the light of the excellent history at Nadex.

Nadex vs Robinhood – 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

Robinhood

Pros	Cons
Fractional share dealing from $1.00 and access to IPO trading	Limited deposit and withdrawal options
Debit card for swift financial transactions with weekly rewards	Questionable business practices and lack of overall transparency
Beginner traders get a wealth of educational content in written form	Algorithmic trading not available/i>
Optimized mobile app

Neither broker offers traders the MT4 trading platform or supports algorithmic trading, but both provide their proprietary trading platforms and mobile apps. Trading costs at Nadex are cheaper, while Robinhood offers fractional share dealing ideal for smaller portfolios. Nadex trumps Robinhood with a more trustworthy trading environment and notably better management.

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

• Nadex vs IQ Option
• Nadex vs IG Markets
• Nadex vs Forex.com
• Robinhood vs Trading212
• Robinhood vs Coinbase
• Robinhood vs Webull

Read full Robinhood Review

Read full Nadex Review