Gold ETFs, futures, CFDs and perpetuals: how to choose

Holding gold for five years and trading a price move this afternoon are different jobs. For a lasting allocation, a physically backed gold ETF or trust bought outright offers exposure without managing a leveraged position. For active long or short trading, dated futures, CFDs and perpetual futures offer different ways to size and execute the trade.

The useful comparison is how each product works: how much exposure you take, how prices are set, what you pay to enter and hold, and when you can exit. Here is how those choices differ, followed by a practical look at trading gold perpetuals on Turbo.

For a fair cost comparison, use the same position value and holding period. Margin is collateral supporting a trade, not a fee. A smaller deposit can mean more leverage rather than a cheaper product.

Gold ETFs and trusts: straightforward long-term exposure

A physically backed ETF or trust can suit someone who wants gold in a portfolio without managing expiry dates or derivative margin. You own shares in the vehicle holding the gold. With a fully paid cash purchase, there is no leveraged position to maintain and no perpetual funding payment.

The ongoing expense ratio matters over time. For example, SPDR Gold Shares aims to reflect the price of gold bullion after expenses and lists an annual expense ratio of 0.40%. That is roughly $4 a year on a constant $1,000 holding, before brokerage and the bid–ask spread. Other funds have different charges.

Shares can also be traded intraday. The distinction is how you use them: buying outright is a simple way to hold long exposure, while short selling requires a separate borrowing and margin arrangement. Available trading hours depend on the listing and your broker.

Dated gold futures: exchange trading in fixed contract sizes

Gold futures support active trading and hedging through standardized exchange contracts. Buyers and sellers trade in a centralized market with transparent prices. The practical hurdle for a smaller account is often the size of one contract, even when the required margin is a modest percentage of its value.

The benchmark COMEX Gold contract represents 100 troy ounces. Micro Gold represents 10 ounces, and the 1-Ounce contract represents one. At a hypothetical gold price of $4,000 an ounce, the difference is substantial:

These are sizing examples, not current gold quotes or margin requirements. CME’s contract specifications establish the contract sizes; actual margin requirements change with market conditions, and brokers may require more. Micro and one-ounce contracts lower the capital hurdle considerably; compare the minimum position size and liquidity of the contract you would actually trade.

You also choose an expiry. Keeping exposure beyond it generally means closing one contract and opening a later one, with another execution and potentially a different price. Compare spread, commissions and exchange fees for the exact contract and trading session you intend to use.

Gold CFDs: provider-specific pricing and holding costs

A gold contract for difference, or CFD, gives you long or short exposure through an agreement with a provider. Position increments and margin depend on its terms. For over-the-counter CFDs, the provider determines the quotes available to you.

ASIC’s guide to CFD pricing distinguishes providers that mirror underlying prices from market makers that may add a spread. Spreads can be fixed or variable; CFDs do not all use one pricing model.

For an active trader, the relevant figure is the spread available when entering and exiting at the intended size. A variable spread can widen when conditions change, consuming more of a small price move. Add any commission and overnight financing to the comparison. A zero-commission headline does not establish the full cost, and a competitive daytime quote does not establish weekend access.

Gold perpetuals: active trading without an expiry

A gold perpetual future gives price exposure, long or short, without owning physical gold or rolling an expiring contract. Funding payments help align the contract with its reference price. Execution, funding intervals and margin rules depend on the venue.

Turbo’s gold market combines this no-expiry structure with a live order book and continuous trading. The practical differences become clearer when you look at a position from sizing through to exit.

Size the exposure, then choose the leverage

Turbo lets you set the trade amount and leverage, within the market’s limits. As an illustration, $1,000 of exposure at 5x requires $200 of margin, before fees. A 1% price move produces a $10 gain or loss before costs. The leverage guide explains the relationship.

Setting a dollar exposure gives you finer control of position size than buying a whole dated futures contract. Margin is a separate comparison: this 5x example uses 20% margin, while the futures table assumed 5%. At the same exposure and margin rate, the collateral arithmetic is the same.

Inspect the book and the execution price

On Turbo’s gold order book, you can inspect bids and offers before entering. A market order matches available orders; a limit order sets the price you will accept and can rest on the book. A limit order may not fill, while a market order can fill across several price levels.

Turbo adds no spread markup. The market’s bid–ask spread still exists and can widen, and execution can involve slippage. What you can assess is the live book alongside separately disclosed fees. Exchange-traded dated futures also provide transparent market pricing; Turbo combines that style of execution with a contract that has no expiry.

Calculate trading fees and funding separately

Turbo charges 0.05% of each executed trade’s value, before referral discounts, plus a separate exchange fee. Both fees are shown in dollars before confirmation. The exchange component varies by market, maker or taker execution, and applicable tier. A limit order can be either maker or taker depending on how it executes. See the fee schedule.

The example assumes equal opening and closing values and no referral discount. Funding is separate: on Turbo it settles hourly between traders, and none goes to Turbo. Depending on the rate and direction, you pay or receive it when holding a position at settlement. It is based on the full position value, not just the margin. Check the current funding rate and settlement mechanics, even for a short trade.

Repeated funding payments matter over a long holding period. A perpetual removes contract rolls, but it does not remove holding costs. Payment-provider charges may also apply when moving money into or out of the account.

Trade through the weekend

Turbo’s gold order book operates 24/7/365. You can open or close a position during the weekend using the same mobile workflow as during the week. When external reference markets are closed, the contract’s reference can come from its own order book. Prices can move away from another market’s last close, and available liquidity still determines execution.

Continuous access is a contract-specific feature, not exclusive to perpetuals. CME’s one-ounce gold future also trades 24/7, subject to maintenance windows. Compare the actual hours and depth of the market you plan to trade.

Manage the collateral behind the trade

A leveraged position also needs active margin management. Turbo’s gold market uses cross margin: losses can draw on the shared balance backing cross positions, and insufficient margin can trigger liquidation. The $200 sizing example is not a maximum-loss figure. See how margin works.

Choose the product around the position you want to hold

For a long-term gold allocation, compare physically backed ETFs and trusts by fund expenses, trading costs and access. For active trading, dated futures offer standardized exchange contracts if their size and expiry fit the position. A CFD can fit a short-term trade when the provider’s position sizes, execution and total costs are competitive. An order-book perpetual combines adjustable exposure with no expiry, in return for managing funding and margin.

For an active gold trade on mobile, Turbo brings those perpetual features together: choose the exposure, inspect the order book, review the fees and trade without waiting for a weekday session or managing a contract roll. The decision rests on whether that combination fits your trade and its full cost.

You can explore gold and rehearse an entry and exit in Turbo’s paper mode, using live prices and simulated fills before depositing. Join the Turbo waitlist.