CFD vs futures
Both give leverage on a price move: a CFD is a contract with a broker (OTC), futures is a standardised exchange contract with a specification.
| Criterion | CFD | Futures |
|---|---|---|
| Market | OTC — the counterparty is the broker (market maker) | An exchange — a central clearing house |
| Standardisation | The broker sets the terms (KID, spread, leverage) | Contract specification: tick, size, delivery months |
| Supervision | ESMA/KNF for EU brokers | A regulated exchange (e.g. CME) + a broker |
| Who it is for | Available to EU retail clients within ESMA limits | Lower limits, but exchange-level transparency of costs |
Worked out on one example
The difference the table does not show at first glance: what it costs to hold a position for a month in each of the two products.
Example assumptions
- A notional of $50,000 in both variants.
- CFD: a financing cost of 0.02% of notional value per day — a value assumed for the calculation.
- Futures: a deposit of $8,000, the contract rolled once a quarter, a roll cost of $15.
The arithmetic
- CFD financing cost per day $50,000 × 0.02% = $10
- Holding the CFD for 30 days 30 × $10 = $300
- Cost relative to notional $300 / $50,000 = 0.6%
- Futures roll cost per month $15 / 3 months = $5
- Difference per month $300 − $5 = $295
A position held for weeks is two different cost ledgers: in a CFD the financing appears as a separate fee, in futures it is spread through the valuation of the contract and through the roll. The longer you hold, the more that line matters.
The arithmetic rests on the assumptions stated above — it is not a forecast and not market data. Put in your own numbers: Position size calculator.
This comparison describes differences in mechanics; it does not recommend a choice. The fit depends on your horizon, capital and risk tolerance. Educational content — not investment advice.