The nature of the complaints
The industry of Binary Options is gaining more and more adepts by the day, especially because they are easier to understand and handle on the trading market and the risks are extremely low, compared to the options. This means more are attracted in this direction, both clean and dirty players.
This is not the case for NADEX, but complaints still exist, obviously contrasting with the ocean of positive reviews, maintaining the broker’s reputation as close to pristine as possible. This doesn’t mean that the NADEX complaints are any less important and we will deal with the most recurrent ones:
1. Problems with navigating and using the platform
Some users have reported difficulties with understanding how the platform works, especially those transitioning from EU classic trading platforms. The reports mention difficulties grasping the navigation process in regard to acquiring useful information and for any type of trading-related activities.
Newcomers find it easier to adapt, though, because NADEX has a well optimized platform that, although different than your usual brokerage platforms, it is extremely user-friendly. The Learning Center is just one example.
2. Engaging in any activity requires prior ID verification
This is a security measure that not all trading brokers force their clients to go through. Especially those that are not CFTC regulated, like NADEX is. This is a legitimate concern for most cases, because it is never a good idea to disclose your personal information to any third-party requiring it; that much more when the third-party is unregulated and illegitimate.
But since NADEX is regulated, and no NADEX scam was ever recorded, the ID verification method is one extra security measure that works for the user, not against him.
3. Nationality restriction
This is another crucial difference between NADEX and similar brokerage trading platforms. In most cases, binary broker platforms are available worldwide to people of all nationalities, with only minor restrictions.
This platform, however, despite the fact that it grants access to US users, unlike EU traders, it fails in covering as many worldwide corners as other EU-based platforms. This is either due to security reasons, or because some are simply inaccessible to the provider for various causes.
4. Insufficient services and assets
Regarding the services
In terms of delivering Binary Options alternatives, NADEX is restricted by the very nature of the trading mechanism. This means that you will only be able to buy or to sell, which is, in and of itself, vastly different than the wide range of trading options EU brokers offer.
However, this appeal towards simplicity is quite relevant, because it eliminates the possibility for the broker to bet and win against a client, on the last one’s expense. A practice that is condemned both from the legal stance and the moral one.
Regarding the assets
This is another area where a parallel is being drawn between EU brokers and NADEX. While EU based trading platforms usually provide you with 100+ assets, NADEX only delivers up to 35 in total. It is, probably, the first legitimate concern coming from clients, but not as serious as you might think.
The list is gradually increasing and will definitely expand significantly over time.
5. No incentives
While some may view this as a significant downside, the reason why NADEX doesn’t offer any monetary bonusses is because it is forbidden to do so under the CTFC regulations.
EU based brokers function differently, because they operate under different legislations and are not CTFC regulated on top of that. This allows them to put a number of bonuses and incentives at your disposal, many of them, obviously, only valid under certain draconian conditions.
Which, more often than not, works to the client’s demise.
6. Limited withdrawal options
This is another legitimate concern, since NADEX withdrawal issues have been pointed out by a lot of clients, especially EU residents. There are only a few of withdrawal and deposit options for US based clients, and nowhere near enough for those residing in EU.
While US clients can complete transactions using ACH bank transfer, card transfer and wire transfer, while EU residents only have card and wire transfer. This is seriously limiting in terms of efficiency, which is why the company is looking forward to improve this sector in the following period.
About NADEX security measures
In order to avoid and prevent any type of online fraudulent practices, NADEX has put in place several protective measures:
– Works with the Better Business Bureau (BBB), which supervises all the practices and allows the clients to file in complaints, regarding attempts of scams or frauds.
– Secured funds, as the clients’ funds are hosted by some of the largest US banks, the BMO Harris Bank and Fifth Third Bank.
– Obtained the CFTC license, which speaks decisively about the company’s legitimacy and top-notch service quality.
– Operates under direct legal reach – NADEX headquarters are situated in Chicago, Illinois. This stands for another protective measure, as US clients (which represent the majority of the NADEX client database) know that the company operates in the same legal environment, unlike offshore brokers that cannot be held responsible for their actions.
What do the NADEX complaints say about the company?
As we have said in the beginning, no broker is perfect. There will always be complains regarding some of their practices or services. This doesn’t mean that all the binary brokers are the same. NADEX is different because it is CFTC regulated and it makes for one of the most secured and transparent service provider you can find today.
Does this impact the quality of the services? Sure, it does. It is obvious with the insufficient payment options and assets and not enough incentives for either fresh or long-time clients, among other minor aspects. But these do not constitute major problems as loose security measures or the lack of certification would.
These complaints only show what it takes to operate under strict regulations that have been put in place to protect both the client and the service provider at the same time.
Is NADEX safe? There is no doubt about it. In terms of transparency, security and objectivity, NADEX is the safest Binary Options broker you could go with.