Futures and CFDs both let you profit from rising or falling prices without owning the asset. The difference is where and how they trade. A futures contract is a standardised agreement traded on a regulated exchange, with a fixed size, a fixed expiry date and a clearing house between buyer and seller. A CFD is a private contract with a provider, with flexible sizes and usually no expiry, often priced from the futures market itself.
Key takeaways
- Futures trade on exchanges such as CME, ICE and Eurex; CFDs are traded over the counter with a provider.
- Futures come in fixed sizes: one E-mini S&P 500 contract is $50 per index point, one crude oil contract is 1,000 barrels.
- CFDs can be traded in much smaller sizes, which makes position sizing easier on small accounts.
- Futures expire; most cash CFDs do not, but charge daily financing instead.
- With futures the counterparty is the clearing house; with a CFD it is the provider.
| Futures | Exchange-traded · standard size · expiry date · clearing house · daily settlement |
|---|---|
| CFD | Over the counter · flexible size · usually no expiry · provider is counterparty · daily financing |
| Common ground | Leverage, long and short, no ownership of the asset |
| At Marketsall | CFDs only |
CFDs vs futures side by side
| Feature | Futures | CFDs |
|---|---|---|
| Where traded | Regulated exchange | Over the counter, with a provider |
| Contract size | Fixed by the exchange | Flexible, often very small |
| Expiry | Yes, monthly or quarterly | Cash CFDs: none · futures-based CFDs: yes |
| Holding cost | Built into the futures price | Daily financing (cash CFDs) |
| Margin | Set by the exchange and broker | Set by the provider |
| Profit and loss | Settled in cash every day | Shown as floating until closed |
| Counterparty | Clearing house | The provider |
| Costs | Commission and exchange fees, plus spread | Spread, sometimes commission, plus financing |
| Account needed | Futures brokerage account | CFD account |
Contract size: the practical difference
| Contract | Size | Value of a 1% move at an illustrative price |
|---|---|---|
| E-mini S&P 500 | $50 × index | At 6,500: about $3,250 |
| Micro E-mini S&P 500 | $5 × index | At 6,500: about $325 |
| Crude oil (WTI) | 1,000 barrels | At $70: $700 |
| Gold | 100 troy ounces | At $4,000: $4,000 |
| Euro FX | 125,000 euros | At 1.1000: about $1,375 |
A single standard futures contract can be too large for a small account to hold within sensible risk limits. CFDs can usually be traded in fractions of those sizes, which is their main attraction for smaller traders. See position sizing and standard, mini and micro lots.
Daily settlement vs floating profit
Futures are marked to market every day: the clearing house moves money between the accounts of winners and losers each evening, and if your account falls below the maintenance margin you must top it up. A CFD shows profit or loss as floating equity, and the provider closes positions if your margin level falls to the stop-out level. The effect on risk is similar; the mechanics differ.
Which costs less?
| Holding period | Futures | Cash CFD |
|---|---|---|
| Intraday | Commission and fees; tight spreads | Spread only, or spread plus commission |
| Days to weeks | No daily financing | Financing each night |
| Past expiry | Must roll: new commission and spread | No roll needed |
| Small sizes | Not possible below one contract | Possible |
What it costs to trade CFDs and futures as a CFD
This section covers the CFD side. See what a CFD is and cash vs futures index CFDs.
| Cost | When it applies | Note for CFDs and futures |
|---|---|---|
| Spread | Every trade, at entry | Usually wider than the futures spread |
| Commission | Depends on instrument and account type | As set in the symbol specification |
| Swap / overnight financing | Positions held past the daily rollover | Charged daily on cash CFDs; built into the price of futures-based CFDs. |
| Contract rollover | Only if the CFD is based on a futures contract | The price adjusts when the underlying contract changes. |
| Slippage | Fast markets, gaps, news | Similar in both products around news |
Key risks
Leverage. Both products are leveraged. See how leverage increases trading risk.
Counterparty. A CFD depends on the provider; see what FSC Mauritius regulation means for traders.
Expiry. Futures and futures-based CFDs must be rolled or closed.
Gaps. See gap risk.
Negative balance protection applies to all Marketsall account types, so a retail account cannot fall below zero. It caps the worst case. It does not reduce the chance of losing the money in the account. More in gap risk and how leverage increases trading risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
What is the difference between CFDs and futures?
Futures are standardised contracts traded on an exchange, with fixed sizes, expiry dates and a clearing house as counterparty. CFDs are contracts with a provider, with flexible sizes and usually no expiry. Both let you trade rising and falling prices with leverage.
Are CFDs cheaper than futures?
It depends on size and holding period. CFDs allow small positions and avoid exchange fees and rolls; futures have no daily financing and usually tighter spreads. For large positions held for weeks, futures are often cheaper; for small or short-term positions, CFDs often are.
How big is one futures contract?
Sizes are set by the exchange. One E-mini S&P 500 contract is worth $50 times the index, one micro E-mini is $5 times the index, one WTI crude oil contract is 1,000 barrels and one COMEX gold contract is 100 ounces.
Do CFDs expire?
Cash CFDs do not expire; they charge overnight financing instead. Futures-based CFDs follow a futures contract and expire or roll over with it, usually monthly or quarterly.
Who is the counterparty in a CFD?
The CFD provider. In a futures trade the exchange’s clearing house stands between buyer and seller. This is why the provider’s regulation and financial strength matter to CFD traders.
Related reading
Translate futures sizes into CFD lots
Take one contract from the futures table and set its fixed size against the contract size in a CFD symbol's specification, following how to read contract specifications on MT5; calculating margin on MT5 then shows what that size would tie up.
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