Most retail traders outside the United States reach gold and currencies through spot products β a CFD, a spread bet, or a rolling spot position with a broker. The same markets also trade as futures on CME Group’s exchanges. They track the same underlying prices. Almost everything else about them differs.
This is a structural comparison, not a recommendation. Which one suits you depends on where you live, how much capital you have and what you are trying to do.
Counterparty: who owes you the money
This is the difference that matters most and gets discussed least.
A futures position is cleared. Once your trade is matched, CME Clearing steps between buyer and seller and becomes the counterparty to both. Your exposure is to the clearing house, backed by a default fund and daily margin from every participant.
A CFD is a contract with your broker. Your profit is their obligation. If they fail, you are a creditor β client-money segregation rules help, and vary substantially by jurisdiction, but the structure is fundamentally different from a cleared one.
Pricing: where the number comes from
Futures trade on a central limit order book. Every participant sees the same bids and offers, volume is published, and there is an official daily settlement price. If you disagree with the price you can see the orders behind it.
CFD pricing is set by your provider. Usually it references an underlying market closely, but it is their quote, and the spread can widen at their discretion. Two brokers can show different prices for the same instrument at the same moment.
Cost: same money, different place
Neither is free, and headline comparisons usually mislead because the costs sit in different places.
| Futures | Spot / CFD | |
|---|---|---|
| Explicit fee | Commission + exchange + clearing fees per contract | Usually none |
| Spread | Market-determined, published | Set by the broker, often marked up |
| Cost of carry | In the price difference between contract months | Overnight swap / financing charge |
| Data | Exchange market-data fees may apply | Included |
A CFD with “zero commission” is not cheaper by that fact alone β the cost has moved into the spread and the swap. A futures contract with a visible commission may total less, or more. The comparison only means something once you count all four rows for your actual holding period.
Size and access
This is where the gap has narrowed dramatically.
Historically, futures were out of reach for small accounts: one gold contract controls 100 troy ounces, which is well over $400,000 of metal at current prices. That is no longer the only option:
| Contract | Size | Roughly |
|---|---|---|
| GC β Gold | 100 oz | Institutional |
| MGC β Micro Gold | 10 oz | Reachable |
| 1OZ β 1-Ounce Gold | 1 oz | Comparable to a small CFD position |
The same has happened across the board β micro contracts now exist for the indices, crude, FX and crypto. Size is no longer the barrier it was.
Access still is. Trading futures requires an account with a broker licensed to execute futures, which in most jurisdictions is a higher bar than opening a CFD account, and in some countries retail access is limited or impractical. CFDs, conversely, are banned for retail clients in the United States. Where you live may settle the question before any of the above matters.
Expiry
Futures expire. Holding exposure beyond one contract’s life means rolling, and physically-delivered contracts carry a first notice day you have to stay ahead of. Cash-settled contracts are simpler but still expire.
Spot positions do not. They roll silently, and you pay for it through the swap rate.
Regulation and tax
Futures are regulated as exchange-traded derivatives under the CFTC in the US, with position limits, published rulebooks and a formal dispute process. CFD regulation varies enormously by country β leverage caps, negative-balance protection and marketing restrictions all differ.
Tax treatment also differs by jurisdiction, sometimes substantially, and it is genuinely a case for professional advice rather than a general article.
The honest summary
Futures give you cleared counterparty risk, transparent pricing, published volume and an official settlement β at the cost of expiry management, higher access requirements and explicit fees.
Spot and CFD products give you simplicity, continuous positions, fine-grained sizing and easy access β at the cost of dealing bilaterally with your broker at prices they set.
Both are legitimate structures. The frequent claim that one is simply “better” usually comes from someone selling one of them.
This page compares product structures and is not investment advice. Regulatory treatment, availability and tax vary by jurisdiction β check what applies where you live.