Perpetual CFDs versus futures, which is better?
Verdict
- For most retail traders in Singapore, perpetual CFDs at Pepperstone, our pick, are the simpler tool: $10 to open an account, no expiry or roll, 24/7 trading and flexible position sizes.
- Futures win on market structure and supervision: they trade on an exchange, and a MAS-licensed firm such as Tiger Brokers offers CME access; Pepperstone's perpetuals come from a Bahamas-licensed entity with no MAS licence.
- In Singapore, Pepperstone's retail perpetual range is limited to five index and commodity contracts on its Bahamas margin table.
- Choose futures if you want an exchange-traded contract and a central order book; choose Pepperstone's perpetuals if you value no expiry, weekend trading and one multi-asset account.
Neither product is better in general; each suits a different trader. Here is the scorecard, with the trade-offs Singapore traders should weigh.
Where Pepperstone's perpetuals come out ahead
Simplicity and hours. A Pepperstone perpetual never expires, so there is no roll to manage, and it trades 24/7, so you can act on weekend news in gold, oil or US indices. Funding is set a week ahead and charged once a day at 5 pm New York, which makes the cost of holding easy to plan. Positions sit next to your FX and share CFDs on TradingView, MT5, cTrader or the Pepperstone app, and you are not tied to whole contract sizes.
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Scorecard
| Perpetual CFD (Pepperstone) | Exchange-traded future | |
|---|---|---|
| Where it trades | Over the counter, with Pepperstone | On an exchange |
| Expiry | None | Fixed dates; roll to keep exposure |
| Hours | 24/7 | Exchange sessions |
| Holding cost | Daily funding, set weekly | Carry in the price, plus roll fees |
| Who supervises your account in Singapore | SCB, The Bahamas (no MAS licence) | Depends on broker; Tiger Brokers is MAS-licensed |
| Markets for Singapore retail | Gold, NAS100, US500, WTI, Brent | Whatever the exchange lists |
Where futures come out ahead
- Price comes from a central exchange order book, not from your broker.
- You can choose a MAS-licensed broker; Tiger Brokers' Singapore entity offers CME futures.
- Fees are itemised: Tiger lists commission, platform, exchange and regulatory fees per contract, for example USD 4.60 in total per contract on CME Euro FX.
- The range is wider than the five perpetuals on Pepperstone's Bahamas retail table.
Which trader should pick which
- Swing trader in gold or US indices who wants weekend access: Pepperstone perpetual.
- Trader who wants Singapore supervision above all: a MAS-licensed futures broker.
- Small account: perpetuals, because futures contract sizes can be too large to size risk sensibly.
- Trader in single stocks: neither is ideal here, as Pepperstone's stock perpetuals are not confirmed for Singapore retail clients.
Sources
Product terms and fees as published.
Is a perpetual CFD a type of futures contract?
No. It is a CFD with no expiry, priced and settled by the broker, while a future is an exchange-traded contract with a set expiry date.
Is Pepperstone regulated by MAS?
No. Singapore clients deal with Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas (SIA-F217).
Which is better for a one-day trade?
For a single day neither involves a roll. Compare the perpetual's 0.015% commission per side and one funding charge with the futures broker's per-contract fees.
Perpetual CFDs and futures are both leveraged and can produce fast, large losses. This comparison uses terms published by each firm and is not investment advice.