Nadex Posts Record Year in 2016

January 12, 2017

While binary options brokers in Europe struggled mightily against an increasingly negative public perception, the industry saw one of its best yearly performances in the United States. Nadex, the Chicago-based binary options exchange, reported exponential growth in the last month of 2016, as well as impressive yearly growth.


The US’ more tightly-regulated binary options industry has not faced the same level of scrutiny or public outcry as its European counterpart, and Nadex has benefited from being one of the only legitimate alternatives for investors looking to trade binary options, spot forex, and a variety of other products over-the-counter. Along with strong innovations that helped further its reach, Nadex is poised to continue benefiting from its exchange-based model, which ensures a more transparent system and therefore inspires more trust.

Soaring in 2016

Chicago’s Nadex binary options exchange reported an impressive close to 2016 this week, with numbers blowing out the same period the previous year. For the fourth quarter of last year, Nadex reported that total binary options trades and volume grew by 70.00% year over year compared to the fourth quarter of 2015. The exchange also performed admirably during the full year, with trade volumes expanding by 50.00% over 2015.

The good news keep rolling for Nadex, which also reported its best month in the exchange’s history in December in terms of volume. The news highlights a growing trend in US trading as regular consumers elect to invest in limited-risk alternatives to traditional stocks and options. It also pointed to the distinct advantages binary options have when it comes to market volatility and unexpected events.

The December figures are especially encouraging for the exchange, as the end of the year is usually a quiet season for conventional exchanges. Additionally, this year saw increased volatility and unpredictability following the election of Donald Trump and the impact on markets. Regardless, Nadex reported that trade volume expanded across all the assets it offers.

Nadex credited several factors for its strong performance. For one, the company recently updated its mobile and web platforms, creating a more intuitive and accessible trading solution for its customers. Additionally, the exchange’s limited risk guarantees allowed traders to take positions that clearly define their potential profits. Undoubtedly, the exchange also benefited from being one of the best, and still few, choices US consumers have to trade binary options legally.

Why Nadex Continues to Beat Europe

While 2016 was a hallmark year for Nadex and binary options in the US, European brokers saw their fortunes take a turn for the worse last year as regulators and consumers turned against the industry after several high-profile cases where fraudulent and predatory practices were discovered. In response, regulators have taken drastic steps to rein in the industry, leaving many major companies scrambling for lifelines.

The US, on the other hand, has managed to keep the problem of unregulated brokers and shady practices largely under control thanks to its requirement that binary options and similar OTC investment products only be traded on licensed exchanges. This has helped give the US industry more legitimacy, and has created a more transparent trading system that benefits both traders and the companies that offer brokerage services. For Nadex, the first exchange to offer these services and be fully licensed by the CFTC, this means that it can continue to reap the benefits of binary options and similar products without the negative stigma that its European counterparts share.

Time will tell if Europe adopts some of the more proactive regulatory measures taken by the US, but in the meantime, Nadex will likely continue to see its business soar.