Trading Futures or CFDs Which is better for your trading?

Trading Futures or CFDs Which is better for your trading?

Trading Futures or CFDs? Do you have that doubt? Which one is better for your trading? Find out which is the best option for you and to improve the profitability of your trading. A bad decision can be terrifying ???????? How to know which one suits you best? It is best to review its characteristics to know which one to choose and which one suits you best.

Differences between Trading Futures or CFDs

The Futures

The first thing you have to know is that the Ffutures work in regulated markets and cfds No. This means that anyone who wants to contract a future, either buy or sell, will go to the same market regardless of the broker that you use

What is a broker?

A broker is an intermediary that charges a commission for executing an order in the market so everything goes to the same place.


CFDs do not work the same as Futures. The market is not centralized, therefore even your own broker can create a market that simulates or emulates the index, the shares or the financial instrument that they want. What is going to happen? That there may be small manipulations in CFDs that can take you out of the market, it can also happen in Futures, of course, but it will be the same manipulation for everyone.

Do you work with volume?

What happens especially for those of you who work with volume? The volume of the Cfd is not relevant, it will be true that this volume is that of that broker or in the market of the bank that is offering that service and your orders go there but it does not represent all the operations that are being executed worldwide.

It is true that you can use CFDs and put the volume of the future when analyzing the market. You can see more in the video real volume for metatrader where I explain how to do it in metatrader.

This is very important because there are many Cfds brokers that are a bit tricky and can take our money with these small manipulations, especially when we are operating and we are going for a few points.

It is true that the LMAX Market exists, which is a regulated market where many brokers take their orders and if you operate CFDs, a broker that works with that market will be a little more expensive but it can be profitable because it will not be the broker who I manipulate the market to go against you.

The market can go against anyone, but if in addition to the market that we already know that it is a game that is about taking money from another, if the Broker himself is interested in you losing because he will be the one who benefits and stays with your money it is not a fair game.

The Broker in Futures and/or CFDs trading

It is important because those regulated markets are going to give us the same information for everyone and in the CFDs markets it does not have to be the same. In fact I can take several CFD brokers, you look at them and they may be almost the same but they are not identical.

In the regular markets the broker is a mere intermediary and in CFDs in most cases he is really interested in your trading with them because when you lose they keep your money.

Which is cheaper Futures or CFDs?

The commissions

If you look at the commissions, the futures have a smaller commission than the Cfd. Now, the Broker does not have a commission, it has a wider range or worse execution that is also taking money from you and it is more expensive than with futures.

There is no CFD broker that is cheaper than a futures broker.

The Value of the Lot

In futures, the value of the lot is much easier or higher than that of CFDs. Futures are better because they are cheaper and have fewer commissions, but perhaps a future is not suitable for your account


Futures have an intraday guarantee and a final guarantee of the day that is much higher, and CFDs ask for a small guarantee than until a few years ago.

So futures are again cheaper but more capital is required. CFDs are more expensive but require less capital to operate.

In conclusion, which is better for your trading, Futures or CFDs?

To make scalping is much better Futures and to do swing trading are much better than cfds and also why? If you work with futures you need to have a larger account because the value of the lot is going to be much larger and a small deviation is going to generate a much larger loss for your account, therefore, if you have to do Swing trading it is not very interesting futures.

Another example is Metatrader with Cfd is a blessing because you can easily add positions and decide which ones to close and which ones to keep open, it is very easy to hedge and even deleverage, however, with futures it is much more complex.

It is much easier to manage a position with CFDs than with Futures simply because you want to cover yourself or want to average even for or against within a certain range.

Which is better for your trading, Futures or CFDs?

Learn trading profitably

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