The short answer
When you buy cryptocurrency (spot crypto), you own the coin. It sits in a wallet, and you can hold it, send it or sell it.
When you trade a crypto CFD (contract for difference), you own no coin. You hold a contract with a broker that pays or charges you the change in the coin's price. You can go long (gain if the price rises) or short (gain if the price falls), usually with leverage.
Neither route is better in general. They are different products with different risks. Leveraged CFDs can lose money fast, and crypto prices move sharply.
Comparison table
| Point | Crypto CFD | Buying coins (spot) |
|---|---|---|
| Ownership | No coin, only a contract with the broker | You own the coin |
| Custody | Broker holds your money as account balance; no wallet or keys | Exchange wallet or your own wallet and private keys |
| Leverage | Usually available; losses grow with it | Usually none on plain spot purchases |
| Short selling | Possible | Not on a plain spot purchase |
| Main costs | Spread, commission on some accounts, swap for overnight positions | Exchange trading fee, spread, deposit and network withdrawal fees |
| Transfer on a blockchain | Not possible | Possible |
| Counterparty | The broker | The exchange while coins are held there; yourself in self-custody |
| Legal status in Pakistan | See the legal section below | Check the current rules |
Ownership and custody
With spot crypto, ownership is real but so is the custody job. If coins stay on an exchange, you depend on that exchange's security and solvency. If you move them to your own wallet, you are responsible for the private keys. Lose the keys and the coins are gone.
With a CFD there is nothing to store. Your account shows a cash balance and open positions. The trade-off is that you depend on the broker: its pricing, its execution and its ability to pay out. You also cannot use a CFD to pay someone, stake, or move coins to another platform.
Leverage and margin
Leverage means you control a position larger than your deposit. The deposit set aside for the position is the margin. A margin call is a warning level, and a stop-out is the level at which the platform starts closing positions automatically.
On Exness, the published figures (check the specification in the platform before trading) include:
- Maximum leverage on the Standard account: 1:Unlimited. Unlimited leverage is not given by default; the stated conditions are on real accounts: equity below 5,000 USD and at least 10 closed orders totalling 5 lots or more across real accounts.
- Instruments listed as eligible for unlimited leverage: Forex majors and minors, DXY, USDCNH, HKDJPY, USDHKD, USDTHB; all commodities except XAUUSD247; BTCUSD, BTCUSDT, ETHUSD, ETHBTC.
- Margin call and stop-out by account: Standard Cent: margin call 60%, stop out 0%; Standard: margin call 60%, stop out 0%; Pro: margin call 30%, stop out 0%; Raw Spread: margin call 30%, stop out 0%; Zero: margin call 30%, stop out 0%. Exness also states: 0% stop out not supported in some countries; may vary.
- Negative balance protection: balance reset to 0 after stop out.
High leverage does not reduce risk. A small price move against you can wipe out the margin on a position. Read Risk management before using leverage, and use the Calculators to see margin and position value before you open a trade.
Costs: spread and swap vs exchange fees
Crypto CFD costs:
- Spread: the gap between buy and sell price. Crypto spreads are usually wider than on major currency pairs and can widen further in fast markets.
- Commission: depends on the account. Standard: no commission. Pro: no commission. Raw Spread: up to 3.50 USD each side per lot. Zero: from 0.05 USD each side per lot. Commission per crypto instrument can differ, so check the specification in the platform.
- Swap: a charge or credit for holding a position overnight. On Exness, by default all accounts are swap-free on listed instruments; the status can be lost. Clients registered from listed Islamic countries get swap-free status automatically; the list is Algeria, Azerbaijan, Bahrain, Bangladesh, Brunei, Chad, Comoros, Côte d'Ivoire, Djibouti, Egypt, Indonesia, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Kuwait, Lebanon, Libya, Maldives, Mauritania, Morocco, Niger, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Tajikistan, Tunisia, Turkiye, Turkmenistan, United Arab Emirates, Uzbekistan. Check your account's current status in the Exness personal area. See Swap fees for how swaps work.
Spot crypto costs:
- Exchange trading fees on each buy and sell.
- The spread between bid and ask on the exchange.
- Fees to deposit or withdraw local currency, and network fees when you move coins.
For a long holding period, CFD swaps (where they apply) can add up, while spot holding has no overnight charge. For short trades, spread and commission matter more.
Execution and platforms on Exness
On Exness, crypto is listed among Standard account instruments: forex, metals, cryptocurrencies, energies, stocks, indices. On the Pro account, order execution is instant (forex, metals, energies, stocks, indices), market (cryptocurrencies). Market execution means the order fills at the available market price, which can differ from the price you saw.
On the Standard Cent account, platform availability is MT4 and MT5 (BTCUSDc, ETHUSDc not on MT4). Trading hours, contract size, minimum volume and margin for each crypto CFD should be checked in the specification in the platform. Instrument pages such as BTCUSD (Bitcoin) and ETHUSD (Ethereum) explain how each one works.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Tax treatment in general
Tax treatment can differ between the two routes. In many countries, CFD results are treated as trading gains or losses, while owning crypto can create questions about capital gains, holding periods and record keeping for each purchase. Rules change and depend on your situation.
We do not give tax advice. Keep records of every deposit, trade and withdrawal, and speak to a qualified tax adviser in Pakistan. See Payments, tax, Islamic banking for background.
Legal status differences in Pakistan
This part matters more than costs.
For offshore CFD platforms, Pakistani regulators have published the following:
- On offshore products: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
- Per the SBP: remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
- Per the SECP: offshore forex/CFD platforms operate without regulatory approval in Pakistan, and per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
These statements cover offshore forex, margin and CFD platforms in general. Exness entities are licensed abroad, for example Exness (SC) Ltd, regulated by FSA Seychelles, licence SD025, registration number 8423606-1; none of them is a Pakistani licence. Which entity holds your account is shown in the Personal Area footer.
The rules on owning cryptocurrency directly are a separate question and have been under review. Check the current position with the SBP and SECP before you act. Our Law and regulators and Regulation and Safety pages collect what the regulators have published.
How to choose between them
Ask yourself:
- Do I want to own the coin, or only trade its price movement?
- Can I handle custody and private keys safely?
- Do I understand leverage, margin calls and stop-out?
- How long will I hold the position, and what will it cost over that time?
- What does Pakistani law say about this route for me?
If you want to learn how CFDs behave without real money, a Demo account lets you practise; Exness states the default is 10,000 USD (virtual). More background is in Crypto CFDs and Trading basics.
Frequent questions
What is the difference between a crypto CFD and spot crypto?
Spot crypto means you own the coin. A crypto CFD is a contract that tracks the price; you never own or receive the coin.
Is a crypto CFD better than buying crypto?
Neither is better in general. CFDs allow short positions and leverage but add broker risk, swaps and fast losses. Spot ownership avoids leverage but needs safe custody.
Bitcoin CFD vs buying bitcoin: can I withdraw coins from a CFD account?
No. A CFD account holds money, not coins. Withdrawals go out in money to your own payment accounts.
Can I lose more than my deposit on a crypto CFD?
Exness states balance reset to 0 after stop out. You can still lose your whole deposit quickly when trading with leverage.
Do crypto CFDs charge swaps?
Swaps can apply to positions held overnight unless the account has swap-free status on that instrument. Check the current condition in the Exness personal area.
Is trading crypto CFDs legal for residents of Pakistan?
The SBP and SECP have published warnings about offshore CFD platforms, quoted above. Read them and our Law and regulators page before making any decision.
