CFD vs FOREX – Wiki Payments

Differences between CFDs and Forex

It’s involves different types of contracts covering a diverse set of markets, such as indices, energy, and metals.
Opportunity to select different contracts that vary in increment value and currency type, depending on the country in which the underlying asset originates.
It’s influenced by specific factors, such as supply and demand of a given commodity or trend changes associated with business sectors.

It is pure currency trading.
Trading one currency against another currency and always involves trading in uniform lot sizes.
Mainly driven by global events, like large employment shifts or international political changes.

Process for trade execution. Traders can easily enter or exit the market in both rising and falling markets.
They using similar looking charts and pricing methods in platform. Trader are executed in the over-the-counter (OTC) market, which is run entirely electronically within a network of banks, with no physical location or central exchange.
The only cost of trading is the spread, as opposed to other types of trading instruments that charge commissions and other finance fees.
Trader doesn’t actually have ownership of the underlying asset. When one buys EUR/AUD, for instance, one is not actually purchasing Euros and selling Australian dollars; rather the trader is simply speculating on the exchange rate. Likewise, when a trader purchases a CFD contract on the FTSE 100, the trader is not actually owning the stocks in the FTSE index, but rather is speculating on its underlying price. In many ways, forex is simply another kind of CFD.