For Israeli traders, WTI futures and CFDs serve different purposes despite similar price exposure. Futures require a fixed contract size (e.g., 1,000 barrels for WTI) with margin in USD—typically $4,000-$6,000 per contract for retail traders—making them capital-intensive. In contrast, CFDs allow fractional trading with lower margin, often starting at $500 for a 1-lot equivalent, suiting smaller Israeli account sizes. Futures involve physical delivery risk and exchange fees, while CFDs are over-the-counter with broker-specific spreads, like
Pepperstone's competitive rates on MT5. Regulatory differences matter: futures are traded on exchanges like NYMEX, requiring KYC from Israeli brokers, whereas CFDs fall under
FCA/
ASIC oversight with flexible leverage up to 1:500. For retail traders in the capital, CFDs offer easier entry and exit without contract expiration, but futures provide direct market access for hedging USD exposure. The choice hinges on account size—futures suit institutional capital, while CFDs dominate Israel's retail scene due to lower margin requirements and MT5 compatibility.