Blog

• TheFXBuddy Research
• Education

Forex vs CFDs: markets, margin, and trading costs

Forex trading focuses on currency pairs such as EUR/USD, GBP/USD, and USD/JPY. CFD trading lets you speculate on price movements in markets such as indices, commodities, metals, and shares without owning the underlying asset.

Costs can include spreads, commissions, swaps, conversion charges, and financing. A tight headline spread is useful, but the total trading cost depends on account type, holding period, trade size, and market conditions.

Margin lets traders control larger exposure than their deposit, which magnifies both gains and losses. Always understand margin requirements before opening a position.

TheFXBuddy content is general information and does not recommend any instrument or strategy.