NinjaTrader, Apex, Nadex, Brokerages, Clearing Houses - What's the difference between them all?

#1

Apex Investing Institute - Apex Toolkit

Apex is a day trading training company providing free education and tested indicators designed to maintain an edge while trading. The Apex Toolkit, once installed after NinjaTrader is installed, enables you to use the Apex templates and indicators on NinjaTrader charts.

NinjaTrader (NT)

NT is, as they say, an “award winning platform + low cost brokerage”. NT is a charting platform to open charts and run indicators. NT is also a brokerage.

NT Charting Platform

  • Trading Nadex or Demo Trading Futures and Spot Forex - The NT charting platform is free to use.
  • Live and demo trading futures or spot forex directly off NT charts - 3 options, free, lease, and purchase.
    1. Can use the free NT Direct Edition with only basic features and must use NT as your brokerage.
    2. Can lease or purchase NT. Both include all features. If you choose NT for your broker, commissions are lower on the purchased version. Upgrades are free for both versions.

Brokerages and Data

A broker is a trader’s representative and sends the order to the exchange. Free and live data is provided by the brokerage. NT brokerage rebrands Continuum/CQG data and provides a free futures demo data and live futures data for a small fee. Free Forex data is unlimited from NT brokerage. NT brokerage does not engage in any trading.

  • Trading Nadex or demo trading futures and spot forex - NT gives two 14-day periods of futures demo data to one email account in a 90-day period. As soon as you sign-up the first time, they will call you and encourage you to open a brokerage account.
  • Live and demo trading futures directly off NT charts - requires a brokerage account and live data costs a small fee. The bundle price including numerous markets is only $21 a month. This is standard and is charged by the CME Group exchanges to the brokerage.
  • Live and demo trading spot Forex directly off NT charts - NT offers unlimited free Forex data

Clearing House

If you open an NT brokerage account, you will need to choose a clearing firm and be approved to open an account. The clearing house is separate from the broker and exchange and is responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, and reporting trading data, including your statements you receive. Many of us here at Apex use NT as our brokerage. You can also ask in the Elite room for input and feedback. If you open an NT brokerage account, you will be asked to choose your clearing house, either Dorman or Phillips.

Nadex

Nadex is an exchange and does not engage in any trading, either with its own members or in another venue. Nadex brings market makers and members together essentially matching buyers and sellers to create a market. It is regulated by the Commodity Futures Trade Commission and located in Chicago. Member funds on deposit with Nadex are held in segregated bank accounts at BMO Harris Bank and Fifth Third Bank in accordance with CFTC Regulations. There is no need for a broker when trading Nadex.

Other helpful links:

Demo Data - Do I have to buy NinjaTrader or open a live NinjaTrader brokerage account to get futures data?

Scanner or NinjaTrader?
#2

Your posting is very informative.

I signed up for the futures data on NinjaTrader. Since then, I’ve received an email and a phone call from them. I’m sure they’re trying to get me to open an account with them for live trading. So far, I’ve only been trading through Nadex. I have some questions:

If I open a NinjaTrader account, what are the advantages/disadvantages between NT and Nadex? What are the bottom line costs between NT and Nadex? Which clearing house is recommended between Dorman and Phillips? Do I need to respond to NT’s call or email? If so, do I mention Apex? Anything else I should know?

#3

Hi D58,

No you do not have to respond to NT’s call or email. They are trying to get you to open a brokerage account. When you are ready to open an account then you might want to talk to them.

The two clearing houses are about the same. You should look into each one yourself, and see what the differences are, then decide which you prefer.

The best place to ask about Demo Data, futures data and clearing house differences is in the Elite room. NT and Nadex are different and hard to compare costs… NT is trading futures and forex off the chart, has commissions, unlimited risk, must open a brokerage account Nadex is trading derivatives, commissions are much less, limited capped risk, must open account direct with Nadex You do not have to mention Apex with either company. You should trade what you are comfortable trading, and according to your account size. Hope that helps :wink:

Kellie

#4

Thanks for the info.