Nadex, the Chicago-based derivatives exchange designed for the retail trader and regulated by the CFTC (Commodity Futures Trading Commission) is now available for global clientele. Part of IG Group Holdings plc (LON:IGG), Nadex is the only United States based regulated trading venue that specifically covers Forex, commodities and stock indices markets with Nadex’s derivative binary and spread contracts.
After reviewing the Nadex website, it is understood that the popular and well regarded binary provider is in the process of being able to expand their client base internationally (being a part of IG group, it makes sense in that the licenses to operate should already be in place). It seems now that with the USA market stabilized for the brand, the time for expansion is right.
According to Nadex’s website, residents of the following countries are now able to apply for accounts:
- Czech Republic
- Hong Kong
- Isle of Man
- New Zealand
- South Africa
- United Kingdom
This is a ground breaking moment in terms of binary trading, as exchange style binary contracts are the future one way or the other. Not only does this move head in that direction through the Nadex brand but it should lead to some interesting and innovative developments from international competitors. The main problem with the binary sector has always been the trust issue. Traders unsure of if the broker is legit, whether they will even actually be paid on profits, and antogonizing and annoying sales people pitching hopes and dreams. Where does that leave the professional and smart trader just looking to speculate through binary contracts? Many have been turned off by these practices. However, Nadex and other major international brokerage houses are looking to change this perception.
While being a perfectly legitimate trading product, as mentioned many unscrupulous brokers have popped up in the burgeoning sector and best practices are still somewhat crude from major regulators as to how the broker should be handling account operations and communicating with clients with this product. While there is a good small stock of current international companies offering binaries, there are still far too many scam brokers exploiting customers, with warnings from regulators on binary firms reported here at LeapRate on a seemingly weekly basis. We hope that IG Group’s Nadex, other leading binary providers, and global regulators begin to further mature the sector forward in 2015.
It is understood for now that all deposits and contracts will still be conducted in US dollars.
To access Nadex, click here.