TD Ameritrade

What's the difference between futures and CFDs? A lot.

The more you know, the more equipped you may be to enter the U.S. futures market. But pretty much, a futures contract sounds like what it is—a standardised contract for the purchase and sale of financial instruments or physical commodities for a future delivery on a regulated commodity futures exchange.

Benefits of futures over CFDs

So what's all the hype about? Let us fill you in. Here are some of the main advantages of trading in this virtually 24/6 market.

  • Transparency: Conducted in a centralised open market where all participants can see trades, quotes, and rates
  • Products: Provides access to CME Group's wide range of futures products to help hedge positions in stock indexes, interest rates, currencies, agriculture, energy, and metals
  • Risk: Processes more than one billion trades a year through the CME Clearing House, ensuring the financial integrity of each transaction—whereas a Contract for Differences (CFD) broker is the counterparty

Build on your futures strategy

Consider incorporating options on futures into your mix. You'll gain the ability to create risk-defined trades, enhance returns, or leverage positions by buying or selling options in which a futures contract is the underlying asset. To learn more about trading options on futures, view our tutorial video in the thinkorswim Learning Centre. To take advantage of trading options on futures, apply for futures trading privileges (if you haven't already).

Get support when you need it

Have questions along the way? We've got answers. Contact one of our service professionals for help.

+65 6823 2250