What is the difference between spot forex trading and cfd forex trading?
What is the difference between spot forex trading and cfd forex trading?
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External question — Personal Finance Stack Exchange
Author: inez
Original post: https://money.stackexchange.com/questions/45576
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Some brokers offer to clients the facility to trade the foreign exchange market via the spot market or via CFDs.
The thing I don't understand is that some currency pairs are offered via both methods. So, in such a case, which method should a trader choose and what are the important factors to consider?
I know how the mechanics of trading via the spot market differ from a CFD market but from the trader's perspective, both methods are leveraged, over-the-counter trades with 0 commissions and the trader only pays a spread.So, it seems to me they are the same.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: inez Source score (net votes, not local likes): 2 Original post: https://money.stackexchange.com/questions/45576 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Some brokers offer to clients the facility to trade the foreign exchange market via the spot market or via CFDs. The thing I don't understand is that some currency pairs are offered via both methods. So, in such a case, which method should a trader choose and what are the important factors to consider? I know how the mechanics of trading via the spot market differ from a CFD market but from the trader's perspective, both methods are leveraged, over-the-counter trades with 0 commissions and the trader only pays a spread.So, it seems to me they are the same.
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