Nadex

Dear Sir/Madam, Please be advised that member *** *** has a $account balance, having removed his remaining funds on December 4, 2017. As far as we are concerned, this matter has been resolved Revdex.com Case # *** - Nadex Customer Information: *** P *** ***
*** ***
*** ** ***
*** *** *** *** E-mail: ***@me.com Thank you for your follow-up Best, ***

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Sincerely,
[redacted]

Initial Business Response /* (1000, 5, 2015/05/14) */
Contact Name and Title: [redacted]
Contact Phone: (XXX) XXX-XXXX
Contact Email: [redacted]@nadex.com
Nadex is a derivatives Exchange and Clearinghouse. It operates in a highly regulated sector of the financial industry, and is...

subject to oversight by the CFTC. Nadex is required by federal regulation to have in place and enforce Exchange Rules. Nadex is prohibited from disclosing any client account information to anyone other than the account owner. Only individual and entity accounts are offered at the Exchange; joint accounts are not offered.
An account was applied for in the name of [redacted] on April 1, 2015, and soon after was funded, and began trading. On April 23, a man called Customer Service requesting information about the account. As the man who contacted the Exchange clearly was not "[redacted]", Customer Service was unable to continue the conversation. There were indications that the account was being shared, such as the username and email address bearing both [redacted]'s and her husband's initials. Two individuals sharing an account is not permitted, even if the individuals are married or otherwise related. In such situations, Customer Service must place the account on a partial hold, whereby no opening positions may be established, nor any new deposits be made. Under these circumstances, account owners may still submit orders to close positions and withdraw funds. These cases are then referred to the Compliance Department for review.
Nadex Rule 5.2 and the Membership Agreement make it clear that an individual must be authorized by Nadex in order to log onto the Nadex System, and that an account owner may not permit any other person or entity to access or attempt to access that owner's account with the account login credentials, nor may an account owner register a shared email address with the account. Prior to opening an account, all applicants must read the Exchange Rules and Membership Agreement, and click-confirm a statement certifying that the applicant has read and agrees to abide by the Exchange Rules, Membership Agreement, and Terms of Use. [redacted] confirmed she had read and agreed to abide by these terms by click-confirming the box next to the statement and submitting the application. Thus, Mrs. [redacted] should have been aware of these Rules.
As Mrs. [redacted] was new to the Exchange, rather than take disciplinary action for violation of the Exchange Rules, the Compliance Department sent her an email reminding her of the Rules and her agreement to abide by the Rules. Mrs. [redacted] replied to this message, stating that her husband would open his own account. She neither requested a withdrawal of her funds at this time, nor mentioned that she was unable to log into the account.
Four days after this initial request, Mrs. [redacted] emailed the Compliance Department and did request her account funds at this time. This was the only request received regarding a withdrawal of funds. Mrs. [redacted] did not mention that she was unable to log into the account. Compliance responded to her email notifying her that the hold merely restricted the establishment of new positions. The email specifically stated "If you would like to withdraw funds you [redacted] log into the account and do so." No further communication was received from Mrs. [redacted], and it was believed that the issue was resolved. Accordingly, the receipt of her complaint through the Revdex.com was very unexpected.
Upon receipt of the complaint Compliance reviewed Mrs. [redacted]'s account and confirmed that there were no restrictions regarding the withdrawal function. Further investigation revealed that the login had been locked due to too many failed attempts on her part. When a login is locked due to failed attempts, an account owner can either reset their password by clicking the link on the login page, or by contacting Customer Service to have the account reset. Mrs. [redacted] neither reset the password on the account via the link, nor contacted Customer Service or Compliance to explain that despite Compliance's email indicating she could withdraw funds, she was not able to log into the account in order to make the withdrawal. Had she attempted either of these options, the issue could have been resolved immediately.
Mrs. [redacted]'s login was reset and she was notified by email. No response was received. Mrs. [redacted]'s account now has a $0 balance, and it appears this issue has been addressed and closed.
Initial Consumer Rebuttal /* (3000, 7, 2015/05/27) */
(The consumer indicated he/she DID NOT accept the response from the business.)
Nadex dropped the ball and is attempting to shine a positive note on this issue by passing fault onto the customer. Shame on you! A simple sorry we messed up would of been better.
Nadex failed to respond to numerous attempts to withdrawal my funds and access my account. They did not take any action until I contacted Revdex.com with a complaint against them.
After investigation they state that I was locked out of the account because of invalid login attempts. This is a false statement! There were no failed login attempts.
"She neither requested a withdrawal of her funds at this time, nor mentioned that she was unable to log into the account." This is a false statement! Numerous attempts from day one were made to have access to my account and withdrawal my funds. I had already lost $200 of my initial investment and did not want to lose the remainder.
After Nadex received my Revdex.com complaint, action was taken quickly to resolve the issue. My account was unlocked and I was able to withdrawal my remaining funds. Thank You Revdex.com!
Nadex Customer Service and their Compliance Department need to communicate between each other better. Customers/members are Nadex business, without them Nadex doesn't exist.
Final Business Response /* (4000, 9, 2015/06/04) */
As stated, on April 23, a man contacted the Exchange requesting information about [redacted]'s account. Representatives are prohibited from providing any information about an account to any caller other than the named account owner. It is a violation of Exchange Rules to permit an individual who is not the named owner of the account to access the account, submit orders on behalf of the account, engage in deposits/withdrawals, and to obtain account information. As a result, the account was placed on hold on that date, whereby the account would not be able to establish new positions (enter new trades), or accept additional funds. The hold does NOT prevent an account owner from closing established positions, or withdrawing funds. In the event an Exchange Rule has been violated, as was the case in this situation, such a hold must be placed on the account to prevent the user from further violations while the Compliance Department reviews the matter and explains the violation to the member.
Mrs. [redacted] did contact the Exchange requesting that the hold on the account be removed in order that she be able to withdraw funds from the account. She was notified by email on Monday May 4 that the hold on the account only restricted the placement of opening orders, and that she could log into the account and withdraw funds at any time. Mrs. [redacted] made no direct contact with Exchange after receiving that message. On Friday of that same week, [redacted] 8, Nadex received notice of Mrs. [redacted]'s Revdex.com complaint. As no communication had been received after she was notified on Monday that she could make a withdrawal at any time, there was no reason to believe the response had not resolved her inquiry. Mrs. [redacted]'s Revdex.com complaint stated that she still had not yet received her funds, and accordingly her account was reviewed. The database showed that three failed login attempts occurred on April 23 at 11:09:28am, 11:09:31am, and 11:10:04am ET, thus locking the login credentials, which is a common security measure among nearly all secured accounts. This account restriction was unrelated to the order entry account hold placed by the Compliance Department as a result of the Rule violation. After discovering the locked login credentials, the login was reset, and Mrs. [redacted] was sent the following email message:
As you were told below referring to the May 4 email, you may log into your account at any time and withdraw the remaining balance from your account, or any portion thereof. A hold restricting you from placing orders does not prevent you from logging into the account and submitting a withdrawal request. The records show the reason your attempt to log in was rejected is because you submitted an incorrect password three times, which locked the account. Had you either clicked the option to reset password, contacted Compliance indicating that your did attempt to log in and withdraw but your log in attempt failed, or contacted Customer Service notifying them that Compliance said you could withdraw funds but the log in failed, the issue could have been easily resolved. The log in lock has now been removed. If you have forgotten your password, please click the "reset account password" link. If you submit an incorrect password three times, the account will again be automatically locked.
Mrs. [redacted] withdrew the remainder of her funds on May 12, and per her request, this account has since been terminated. Nadex has considered this matter closed.