Are you deciding between a forex account and a CFD account at Headway Brokers? Understanding the key differences is essential for choosing the right trading setup. In this article, we’ll compare the main features, advantages, and limitations of both account types—so you can trade smarter and more strategically.
✅ What Are Forex and CFD Accounts?
Forex Account: A forex (foreign exchange) account allows you to trade currency pairs like EUR/USD, GBP/JPY, or AUD/NZD. At Headway, this account type focuses on currency trading with tight spreads and high leverage.
CFD Account: A CFD (Contract for Difference) account allows you to speculate on the price movement of various assets—without owning the underlying asset. This includes stocks, indices, commodities, metals, and cryptocurrencies.
At Headway, both accounts are available via MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms.
📊 Headway Brokers Account Comparison Table
| Feature | Forex Account | CFD Account |
|---|---|---|
| Primary Asset Type | Currency Pairs | Indices, Crypto, Stocks, Metals, Energies |
| Available Leverage | Up to 1:2000 | Up to 1:500 (varies by asset class) |
| Platform Support | MT4 & MT5 | MT5 preferred for broader CFD access |
| Minimum Deposit | From $10 (Cent) or $100 (Standard) | From $100 (Standard or Pro accounts) |
| Spread Type | Fixed or floating; as low as 0.0 pips | Floating; depends on volatility |
| Commission Fees | Zero (Cent/Standard), or $3/lot (Pro) | Typically zero; spreads include markup |
| Asset Variety | ~40–60 forex pairs | 100+ CFDs including stocks & crypto |
| Execution Type | Market Execution | Market Execution |
| Swap-Free Options | Available on request (Islamic) | Available for selected instruments only |
| Risk Level | High (market-driven) | Higher (due to volatility & asset range) |
🧭 Key Differences: Forex vs CFD at Headway
1. 🔹 Market Focus
Forex accounts are ideal if you primarily want to trade currency pairs with predictable volume and liquidity. CFD accounts open the door to trading indices like NASDAQ 100, metals like Gold (XAU/USD), or cryptos like Bitcoin (BTC/USD).
2. 🔹 Leverage Options
Headway offers leverage up to 1:2000 on forex trades, giving high potential (and risk). CFD leverage varies:
Indices: Up to 1:500
Stocks: 1:50
Crypto: 1:20–1:100
3. 🔹 Asset Volatility
CFDs often have higher volatility than forex, especially with cryptocurrencies and stocks, which makes them attractive to short-term or aggressive traders.
📥 Account Types at Headway
Cent Account (forex only):
Min deposit: $10
For beginners testing strategies
Micro-lots trading (1,000 units)
Standard Account:
Min deposit: $100
Access to forex and some CFDs
Zero commission, wider spreads
Pro Account:
Min deposit: $1,000
Designed for experienced traders
Tight spreads + low commissions
⚖️ Which Account Should You Choose?
| Goal | Recommended Account Type |
|---|---|
| Beginner with low capital | Cent Account (Forex only) |
| Trading only major FX pairs | Standard Forex Account |
| Diversifying into assets | CFD Account (via MT5) |
| Scalping or day trading | Pro Account (Forex & CFD) |
| Religious compliance needed | Swap-Free Account (Forex preferred) |
🧩 Frequently Asked Questions (FAQs)
❓ Can I trade both forex and CFDs from the same Headway account?
Yes, Standard and Pro accounts allow both forex and CFD trading, especially on MT5.
❓ Is the $111 bonus available for CFD trading?
Yes, you can trade both forex and CFDs with the bonus account—but profits can only be withdrawn after trading a required number of lots.
❓ Which is more profitable—forex or CFD?
It depends on your strategy. Forex is more stable and liquid, while CFDs offer higher volatility and variety. Each carries its own risk-reward balance.
✅ Final Verdict
Whether you’re a currency trader looking for high leverage or an investor exploring broader markets like stocks or crypto, Headway Brokers offers flexible forex and CFD account types for every level of trader.
Choose forex if you want tight spreads, high leverage, and consistent liquidity.
Go for CFDs if you want exposure to multiple markets—commodities, indices, and more—with diverse trading strategies.
Start with the bonus account, test both asset classes, and decide which path suits your style.