Structure
- Futures: exchange-traded, centrally cleared, standardised
- CFDs: OTC contract with a broker
Costs
- Futures: commissions + exchange fees + spread
- CFDs: spread + swap (financing) if held overnight
Transparency
Futures provide public volume, open interest and market depth. CFD pricing is set by the broker (often mirroring the underlying).
Access
CFDs are usually more accessible in size for retail (micro sizes and fractional contracts). Futures require higher minimum capital in most standard contracts.
Choosing Between Them
- Very active intraday traders often prefer futures for transparency and low variable cost
- Casual and multi-market traders often prefer CFDs for flexibility
Key Takeaways
- Same underlying, different wrapper.
- Compare total cost, not just spread or commission.
- Understand each product's stop-out and margin rules before switching.