Mind you, this option can be sold back to the market at any point in time. As well, unlike the huge discount which has tobe paid when using an unregulated broker, there are no limits to this action as long as there are bids and offers available to fill the order.Traders are meeting the bids and offers of other traders on the exchange, and with the pricing mechanism which Nadex provides, they are guaranteed anonymity there is no information onwhether the counter party of the trade is opening or closing a position.One wouldnt expectthere to be ahuge difference in assets offered when compared to a familiar offshore exchange, but that assumption would provewrong. Aside from offering major forex pairs, indices and commodities, Nadex is offering a typical derivative product which is normally traded on the CME non-farm payrolls futures.This is a most unorthodox and interesting product.Essentially its a derivative on the value of the non-farm payroll report which the Bureau of Labor Statistics publishesevery month. A trader can bet on whether the reported figure will be above or below a certain threshold.In addition, Nadex has launched bitcoin trading in December,withdaily and weekly bitcoin binary options contracts. These contracts featureprice quotes obtained from CFTC regulated TeraExchanges Tera Bitcoin Price Index (TeraBit Indexsm).This is probably the only section of the offering where we would like to see more, a lot more. The platform is certainly more complicated thanthe typical offshore platform, which traditionally feature only a buy/sell (or call/put) sign and the price chart. This makes for an unfamiliar interface and, from personal experience, not a very intuitive one.The arrangement of contracts is not terriblyconvenient, andthe sets of different contracts take some time to arrange properly. We do realize that this is a totally different product from thetypical binary options platform, but the amount of menus and submenus definitely weighs the user experience down.That said, the platform behaved solidly throughout the testing period, which consisted ofa couple of days of occasional trading. No technical issues were encountered. It just works. But to garnera more solid client base, it mightbe a good ideafor Nadex to have another look at their user interface.The charting integrated within the platform is not optimal either.While it does offer the most common technical analysis indicators and time frames, it doesnt offer time frames larger than four hours, which are useful for those trading daily and weekly binary options.As soon as the trader gets used to the platform and its features, which for some will be easy with help from the manual and customer support, binary options trading on Nadex is the best offering we have ever seen on the market for retail traders in terms of reliability. The lack of conflict of interest is apparent.Victor should have done some homework before writing this piece. Nadex is NOT the sole legal binary options exchange in the US as stated above. The Cantor Exchange is also a CFTC regulated binary options exchange in the US AND offers a much easier platform to trade on, in my opinion. I trade on both. In addition, IG Group, the parent company of Nadex, is the primary market maker on their exchange thus they ARE taking the other side of the trade the majority of the time. I admit, Doyen and Group One have begun to make markets on a few select offerings but IG Group is still and will always be the primary market maker on Nadex. This is also why Nadex fills 90 of their participants trades at the participants price almost immediately. IG Group is most likely taking the other side hence the immediate fill. Victor really should have asked Nadex how often IG Group is the other side of a trade and compare those results to how often Nadex traders trade against each other. Cantor Exchange, on-the-other hand, ONLY matches buyer and seller and NEVER takes the other side of a trade as you would think a true, CFTC regulated exchange should. Cantor Exchange pricing comes from the exchange participants directly and not Cantor which is almost the complete opposite of Nadex. I ask you, Victor, which US binary options exchange is the most transparent and fair to their traders Your statement The company (Nadex) is not taking the other side of the trade and is delivering the most transparent product available on the binary options market today is completely inaccurate and false. Ive come to expect more from ForexMagnates. Usually, the articles stimulate thought. Reading an article that is clearly an advertising piece for one firm is VERY disappointing.this is a platform review and I state nowhere that there is no other exchange offerings out there. My intention was to say that Nadex was the first one, this is why Im starting with them. As you might have noticed the offering is compared with offshore brokers which are offering their services illegally. As for Cantor, this will be a theme for another article which is coming soon as they launch their new solution to the market. The binary options market in the US is largely under wraps, the idea of the series of articles which are incoming is to present what are alternatives to unregulated offshore brokers, which are soliciting clients in the U.S. despite this constituting a violation of the law. The new Cantor solution is a very interesting subject as is the NYSE ByRDs. Anyway, thanks for sharing your thoughts on this.Finance Magnates is a global B2B provider of multi-asset trading news, research and events with special focus on electronic trading, banking, and investing.Copyright 2015 Finance Magnates Ltd. All rights reserved. For more information, read our terms and conditionsTo date, only one entity that offers binary options has been granted status as a designated contract marketthe North American Derivatives Exchange, Inc (NADEX). All other entities that are offering binary options that are commodity options transactions are doing so illegally.The Securities and Exchange Commission, in an investor alert issued on June 6, 2013, has made it very clear.
