Nadex Announces First Fee Increase In Years

#1

By Darrell Martin

Effective January 3, 2017, Nadex will increase their trading fees for the first time in several years. For Direct Members trading between one and fifty contracts, transaction fees will be $1 per contract on each side i.e. entry and exit, win or loss. Transaction fees are capped at $50, meaning that should you trade 51 or more contracts in a single trade, transaction fees will not exceed $100.

Settlement fees will vary slightly now as well. If the trade is not exited early, but instead held until settlement and settles in the money, you will be assessed a $1 settlement fee per contract, not to exceed total settlement payout amount. This fee has no cap and applies to the total number of contracts traded. If the trade settles out of the money and has no settlement payout, there is no settlement fee.

Nadex has not had a fee increase since 2011. The popularity of trading binaries and spreads has spurred Nadex’ growth exponentially over the last four years, creating the need to cover the improved product and trader support costs.

No membership fee is charged when joining Nadex. At least $250 is all that is required to open a live account with no minimum balance required thereafter.

For further information on the changes in fees, see this notice posted at Nadex.

#2

I am extremely disappointed with the proposed CAP fee increase for next year. I have no problem with a .10 cent increase but this increased CAP represents an incredible loss of potential income to me as a trader and I may stop trading with any kind of volume. Now not only am I losing $2 instantly on every winning trade I take, I am now stuck losing that amount until I reach 50 lots, which may be never. This really hurts the little guy. This needs to be e re-valuated, as it is counter productive on my end as a trader to have to pay such high fees. I would also like to know how they can justify a 500% increase? They obvious do not want to encourage trade size. Seems they rely on the little guy who loses and keeps depositing $500/1000. This hurts people who achieve 10 contracts and more keeping them down.

#3

It is a huge jump, but I’m not surprised nadex decided to over complicate it. I AM surprised they decided to not grandfather in older traders like they did when they jumped from .70¢/7 trades to .90¢/10 trades.

#4

I can understand your disappointment. I feel it, too. I have two thoughts on it. The first one is to contact Nadex and let them know how you feel. I don’t know if it will do any good, but it might, especially if enough traders speak up. My other thought is that prior to trading with Nadex, I traded commodities and utilized a full-service trader as I was still learning and felt I needed his help. Fees for each trade with that brokerage were $50 each side! That makes Nadex seem very reasonable! When compared to other brokerage fees, Nadex is still very low, but considering the product and the profit potential, it doesn’t quite match up. If brokerage fees are say $7.95 per side, but the profit potential is thousands, then the higher fees seem justified.

#5

I may not be popular for this but given everything Nadex has to offer a $2.00 RT while inconvenient is certainly no disaster. Also, Nadex personnel gotta eat! There has been some inflation out here.