Need help: the difference between Forex CFD & Spot Forex

ilovehoo

Newbie
4 0
Hello, I don't quite understand the difference between Forex CFD & Spot Forex,

I think FX CFD is better, CFD is usually based on forex future price (COMEX) and this price can't be controled by market maker.

Spot FX price is offered by single Market Maker if your platform is not ECN~ and the MM can totally control this~

Am I right? :) (sorry for my poor english)~
 

Pazienza

Senior member
2,334 442
Hello, I don't quite understand the difference between Forex CFD & Spot Forex,

I think FX CFD is better, CFD is usually based on forex future price (COMEX) and this price can't be controled by market maker.

Spot FX price is offered by single Market Maker if your platform is not ECN~ and the MM can totally control this~

Am I right? :) (sorry for my poor english)~
You are confusing totally different things.

The spot price is the price payable now - for immediate delivery if you like, as opposed to the forward price.

So you have spot forex and forex futures, spot gold and gold futures etc.

A CFD is just one of many means of speculating. You can do this via CFDs, spread betting, futures contracts, currency lots etc.
 

Pazienza

Senior member
2,334 442
For example:

With IG Index , you can spread bet on something called "Wall Street" which is their version of YM (emini Dow).

With IG markets, you can do the same but via a CFD.

With IB, you can trade the actual underlying contract -ie, you will be trading actual futures contracts instead of bets or CFDs based on them.
 

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