The Cantor Exchange is a binary options trading exchange located in the US and regulated by the CFTC. The Cantor Exchange is a subsidiary of Cantor Fitzgerald, a globally recognized financial service firm with 65 years experience.
The Cantor Exchange is one of only a handful of licensed and regulated binary options exchanges currently in existence. At this time Cantor Exchange only accepts US clients, although they do accept applications from non-US residents, non-US residents are unable to fund their accounts until a pending regulatory review is complete.
Here's everything you need to know about trading on the Cantor Exchange.
How Cantor Exchange Works
The first thing to understand about Cantor Exchange is how it differs from Nadex. Nadex uses two liquidity providers, or market makers, which means Nadex will always have balanced trade volume, pricing, and immediate order refills. Cantor Exchange, on the other hand, does not rely on market makers, meaning the platform is fully dependent on traders setting the prices, which causes large fluctuations in price and volume. Cantor Exchange is more related to how traditional US Futures Exchanges work.
Other than that, Cantor Exchange is essentially the same as Nadex. Their platform connects buyers and sellers in an open marketplace. A trader places an order containing an expiration date and waits for a buyer or seller to fill the order. Upon the contract's expiration, the winning trader makes what the loser lost – assuming the contract's were of equal value.
Trading With Cantor Exchange
Because they rely on traders to provide liquidity for assets, Cantor Exchange is forced to limit its available trading instruments. Currently, they offer the following assets:
Traders execute trades through the Tradologic platform, a popular web-based binary options trading platform. When weather trading is available, trades are executed through TradeWx.
Their available expiry times are mostly 5-minute, 20-minute, end of hour, and end of day expirations. Cantor Exchange uses a very flexible fee structure. There are no fees for opening a trade or for losing trades that end out of the money – which is a huge bonus. In the money contracts come with a a settlement fee of just $0.01. They also charge a $2 monthly inactivity fee for accounts that have not traded during the previous month.
Another noticeable difference in the Cantor Exchange is the value of its contracts. While full Nadex contracts trade at $100, Cantor Exchange contracts are just $1, which is great for investors following the “trade small trade often” mantra.
Even though liquidity can occasionally be a problem, trading on the Cantor Exchange does come with its advantages. Trading on Cantor Exchange's Tradologic platform is much easier compared to other binary option exchanges. The learning curve is much shorter, and the ability to trade in $1 increments makes Cantor Exchange more suitable for beginning traders. Overall, this a reputable binary option exchange with much room to grow. Highly recommended.