Two instruments, one price
Gold futures are standardised contracts traded on an exchange, with COMEX, part of the CME Group, being the dominant venue. Gold CFDs are contracts for difference offered by brokers, priced from the spot market, with no expiry. Both let you take a leveraged position on the gold price. Almost everything else about them differs.
The spot gold vs gold futures and what is a gold CFD guides introduce each. This lesson is the mechanical comparison: what you are actually buying, what it costs and when, and which fits which trader.
Contract mechanics compared
| Feature | COMEX gold futures (standard) | Gold CFD (typical) |
|---|---|---|
| Underlying | 100 troy ounces of gold for delivery in a specified month | The spot gold price, usually XAUUSD |
| Contract sizes available | 100 oz standard; 50 oz E-mini; 10 oz micro; 1 oz on some exchanges | 1 lot = 100 oz at most brokers; tradeable from 0.01 lot (1 oz) |
| Minimum price move | $0.10 per ounce = $10 per standard contract, $1 per micro | Usually $0.01 per ounce; value depends on lot size |
| Expiry | Yes; active months roll roughly every two months, with delivery possible | None; position stays open until closed or stopped out |
| Delivery | Physical delivery possible if held through first notice day | Never; cash-settled |
| Where it trades | Central exchange with a single order book | Over the counter with your broker, who sets the quote |
| Counterparty | The clearing house | Your broker |
| Price source | Exchange order book | Broker’s aggregated feed, derived from interbank spot |
| Hours | Nearly 23 hours a day, Sunday evening to Friday afternoon New York time, with a daily one-hour break | Nearly 24 hours on weekdays, with a daily break around 17:00 New York time at most brokers |
| Regulation | Exchange rules and futures regulators | Varies by broker jurisdiction; not available to US retail clients |
The size difference is the first practical point. A trader who cannot afford a $100-per-dollar position has a choice between the micro future at $10 per dollar and a CFD at 0.1 lot, which is also $10 per dollar. Below that, only CFDs go smaller. The how much is 1 lot of gold guide and the contract size glossary entry work through the arithmetic.
Costs compared
Costs are where the two diverge most, and where traders most often misjudge the comparison.
| Cost | COMEX gold futures | Gold CFD |
|---|---|---|
| Spread | Exchange spread, typically one or two ticks in liquid hours | Broker spread, typically wider than the futures spread in dollar terms and variable |
| Commission | Fixed per contract per side, charged by the futures broker and exchange | Often none on standard accounts; some accounts charge a commission with a tighter spread |
| Overnight financing | No explicit swap; carry is built into the futures price | Swap charged daily at rollover, usually negative for longs, often triple on Wednesdays |
| Rollover | You must close the expiring month and open the next, paying spread and commission each time, typically every two months | None; the broker may adjust for dividends on indices but not for gold |
| Margin | Set by the exchange and the broker; changes with volatility; initial and maintenance margins | Set by the broker, often expressed as leverage; can change at short notice |
| Data fees | Exchange data fees may apply | Usually included |
| Currency conversion | Settled in US dollars | Converted to your account currency at the broker’s rate |
Two points deserve emphasis:
- The carry is not free in futures. A December contract trading above the October contract (contango) is the market pricing in the interest cost of holding gold. If you hold a long future for months, you pay that difference as the contract converges toward spot. It is the same economic cost as a CFD swap, charged through the price rather than as a line item. The spread and swap costs guide and the gold swap calculator cover the CFD side.
- The spread comparison depends on size. Exchange spreads are tight per ounce but the minimum unit is 10 or 100 ounces. A CFD spread of $0.25 on a 1-ounce position is $0.25; a futures spread of $0.10 on a 100-ounce contract is $10 plus commissions. Compare per trade, not per ounce.
How a trading day differs
Price is the same on both instruments to within the basis (the difference between futures and spot), but the timing of costs and events differs:
- 13:30 New York: the COMEX settlement price is determined. Futures volume drops sharply afterwards, and this is the natural end of the day for many futures traders. The New York session playbook builds around it.
- 17:00 New York: CFD rollover. Swaps are charged to open CFD positions, spreads widen at many brokers and the platform pauses for about an hour. Futures also observe a one-hour maintenance break around this time.
- First notice day: for futures only. Positions in an expiring month must be rolled or closed before it, or delivery obligations begin. CFDs have nothing equivalent.
- Margin calls: futures margin is marked to market daily and the exchange can raise requirements after a volatile day. CFD margin is monitored continuously and the broker closes positions at its stop-out level. The margin call and stop-out guide explains the CFD side; the gold margin calculator shows what a given position needs.
Which to trade: a decision guide
| Your situation | Likely better fit | Why |
|---|---|---|
| Account under about $5,000 | CFD | Only CFDs size down to 1 ounce; futures margin per micro contract would be a large share of the account |
| Account over about $25,000, holding for days to weeks | Futures | Fixed commissions and no daily swap make multi-week holds cheaper; central clearing removes broker counterparty risk |
| Scalping in London and New York hours | Either, with a tight-spread CFD account or micro futures | Spread and execution speed matter more than the instrument |
| Resident in the United States | Futures | CFDs are not available to US retail clients |
| Need exact position sizing to a fraction of a lot | CFD | 0.01-lot increments; futures move in whole contracts |
| Want a single order book and transparent volume | Futures | Exchange volume and depth are real; CFD volume is broker-internal |
| Trading around the 17:00 rollover regularly | Futures | No daily swap line item, though the one-hour break still applies |
| Prefer not to manage expiries | CFD | No rollover to schedule |
Many experienced gold traders use both: futures for the core swing position and CFDs for small intraday trades or fine-tuning. Beginners should pick one and learn its mechanics fully. The order types and execution lesson covers how orders behave on each.
Worked example (hypothetical)
A trader wants to hold a long gold position for three weeks with a $50 stop, risking $500. That means $500 / $50 = $10 per dollar of movement: 0.1 lot CFD or one micro futures contract.
CFD route: spread $0.25 on entry and exit, no commission. Swap on 0.1 lot long is quoted at the equivalent of about $0.60 per night including the Wednesday triple, which over 21 calendar nights is about $12.60. Total estimated cost: $25 spread plus $12.60 swap = about $37.60.
Micro futures route: spread one tick, $1, on entry and exit. Commission and fees about $1.50 per side, $3 round trip. No swap, but if the hold crosses a contract roll the trader pays another spread and commission, about $5, and the carry is embedded in the price at roughly the short-term interest rate on the contract’s value for three weeks, which is a few dollars. Total estimated cost: roughly $10 to $15, depending on the roll.
At this size and duration the futures route is cheaper, if the account can meet the micro contract margin and the trader is comfortable managing the expiry. At 0.01 lot, the CFD would be the only option. All figures are illustrative; check your own broker’s and exchange’s current numbers.
Common mistakes
- Comparing spreads per ounce without the minimum size. Fix: compare total cost per trade at your actual position size.
- Holding a futures contract into first notice day. Fix: diary the roll dates for every month you trade.
- Forgetting the CFD swap on long holds. Fix: calculate the swap for the planned duration before entry, including Wednesday’s triple charge.
- Assuming futures have no carry cost. Fix: the carry is in the price; longer holds pay it through convergence and rolls.
- Treating broker leverage as the risk measure. Fix: risk is the stop distance times position size; margin is a deposit, not a limit on loss.
- Trading CFDs on a platform whose contract specification you have not read. Fix: confirm lot size, tick value, swap and rollover time before the first trade.
Limitations and honest caveats
Both instruments are leveraged and carry a high risk of loss. Futures margin can be raised by the exchange after a volatile day, forcing liquidation if you cannot top up. CFD brokers set their own spreads, swaps and stop-out rules and can change them. Nothing here is a recommendation of any broker, exchange or product, and availability depends on where you live.
- Contract specifications change. Verify sizes, tick values and hours with the exchange or broker rather than relying on this page.
- The comparison of costs depends entirely on your size, hold time and the specific accounts available to you; the worked example is illustrative only.
- Tax treatment differs between the two in many jurisdictions and can be the deciding factor; that is a question for a local professional.
Pro tips
- Write down the full cost of your typical trade on each instrument before deciding. The answer is usually clear once the numbers are on paper.
- Watch the futures even if you trade CFDs. COMEX volume, open interest and the 13:30 settlement are real information that a CFD feed does not show.
- Know the basis. When the front-month future trades unusually far above or below spot, something is happening in the physical or funding market worth understanding.
- If you trade CFDs, avoid opening or holding through the 17:00 window unless the swap is budgeted.
- If you trade futures, roll early. Liquidity moves to the next month before expiry, and rolling in the last days costs more.
Quick checklist
- Which instrument can I legally access where I live?
- Does my account size fit a 10-ounce micro contract, or only a 1-ounce CFD position?
- What is the total cost per trade at my size and hold time: spread, commission, swap or carry, roll?
- Have I read the contract specification: size, tick value, hours, rollover time, expiry?
- If futures, are the roll and first notice dates in my diary?
- If CFDs, is the swap for the planned hold calculated and acceptable?
- Is my position sized from the stop distance, not from the available leverage?
Frequently asked questions
What is the difference between gold futures and gold CFDs?
A gold futures contract is a standardised, exchange-traded agreement to buy or sell 100 ounces at a set date, cleared centrally. A gold CFD is an over-the-counter contract with a broker that pays the difference between the opening and closing price, with no expiry and no delivery. Futures have exchange margin and expiry; CFDs have broker margin and overnight swaps.
How big is one gold futures contract?
The standard COMEX gold contract is 100 troy ounces, so a $1 move is worth $100. There are also smaller contracts: the E-mini at 50 ounces, the micro at 10 ounces, and 1-ounce contracts on some exchanges. Check the current specification with the exchange before trading.
How big is one lot of gold CFD?
At most CFD brokers, one standard lot is 100 ounces, the same as the full futures contract, and lots can be traded in 0.01 increments, so the smallest position is 1 ounce. Some brokers use different lot definitions, so check the contract specification on your platform.
Do gold futures have overnight fees?
No swap is charged, but the futures price already includes the cost of carry: later contract months trade above the spot price by roughly the interest cost minus any lease income. You pay the carry through the price and through the spread when rolling from one month to the next.
Which is cheaper, futures or CFDs?
For large positions held for days or weeks, futures are usually cheaper because exchange commissions are fixed per contract and there is no daily swap. For small positions and short holds, CFDs are usually more practical because of the small minimum size and the all-in spread. Run the numbers for your typical trade.
Can I trade gold futures with a small account?
Micro gold futures at 10 ounces have made it possible with a few thousand dollars, but the margin per micro contract is still several hundred dollars and the minimum tick is $1 per contract. A $500 account cannot sensibly trade futures; it can trade a 0.01-lot CFD.
Are gold CFDs available in the United States?
No. CFDs are not permitted for retail clients in the United States. US retail traders use futures, ETFs or options. The country guides on this site cover what is available where you live.
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Sources and further reading
- CME Group — Gold futures overview — Contract specifications and trading hours for COMEX gold
- CFTC — Commitments of Traders — Weekly futures positioning, including gold
- Investor.gov — Stop order — How stop orders work, and their limits in fast markets
External sites are independent of XAUUSD Global. Check dates and data yourself.