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costs - futures VS CFD's

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Stifler
Contributor
Can someone please help me - I currently trade futures, will it be cheaper to trade CFD's - if we work on the same margin/initial deposit. many thanks
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7 REPLIES 7
Not applicable
In my opinion it is better to trade the SSF than the CFD as there is less market makers margin on SSF's
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surfer
Regular Contributor
Okay good question if you were to say go long BIL for a week and a R10 in your favour price move,Does anybody if the CFD or SSF would work out cheaper?
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Quakedog
Super Contributor
As far as I know SSF interest percentage is paid up front on the value till the expiry date. CFD interest percentage is paid daily on exposure you hold.
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Rams
Super Contributor
its not about costs, but security/risk.
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alleycat
Contributor
On OST the market makers spread is 0.35% on entering and again exiting a trade on both CFD's and SSF's plus the brokerage of R57 per trade.In other words the trade has to move +- 0.8% to break even. Another consideration is that a stop loss can be applied on CFD's but not on SSF's on OST>
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Stifler
Contributor
thanks for the comments, they both seem very much alike then - cost wise I guess. happy trading/investing.
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G_V_V
Super Contributor
Yes but in theory you get the remaining interest back when you sell it before expiry.
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