Nadex vs. IG?

[Brennan Ross]

Hey all,

Very new to this website so if I posted in the wrong section feel free to remove it. For the past few months I've really just been digging into the trading industry and reading everything I can get my hands on. I just have a question regarding the difference between Nadex and IG. Are they basically the same thing as IG owns Nadex? Someone I know from the UK uses IG and I really liked the interface but it wasn't available in the U.S.

Thank you in advanced

 

[southall]

Do Nadex do Spot Forex? I thought they only did binary and options.

I would guess for those 2 instruments Nadex would very similar to IG, expect you have to pay commissions. Whether they reduce the bid/ask spread to compensate i dont know.

 

[Tim Smith]

Are they basically the same thing as IG owns Nadex? Someone I know from the UK uses IG and I really liked the interface but it wasn't available in the U.S.

Not really. In respect of retail derivatives, the US regulatory environment is more restrictive than the European one.

So the reason IG bought Nadex was most likely to gain access to the US retail market without having to spend time and money making the changes to the IG platform in order to be compliant with the US regulatory regime.

I would guess that about 70–80% of functionality will be very similar between the two.

There's no chance of you ever being able to access the remaining 20–30% whilst you remain under the auspices of the US regulatory regime. European financial institutions will not take on US clients these days, the amount of paperwork and bureaucracy involved with onboarding and maintaining a US client is simply not worth their time. That is before you start thinking about specific rules such as derivatives restrictions mentioned above.