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Best Commodity Trading Brokers in India


Best Commodity Trading Brokers in India 2022| Top 10

Commodity trading is subject to high risk, but at the same time, it can deliver high returns. Commodity traders must do prior research to figure out the best commodity broker. Do you trade in commodities? Or a prospective commodity trader, find the best commodity trading brokers in India based on the large customer base, the cheapest brokerage, best online commodity trading platform (desktop trading software or mobile app), and excellent customer support.

What is Commodity Trading?

Commodity trading refers to buying and selling various types of commodities. MCX and NCDEX are the two popular commodity trading exchanges in India. Brokers who are registered members of the two exchanges can offer online trading in commodities like gold, silver, copper, zinc, crude oil, and agriculture or agro commodities. Commodity trading is possible in two ways;commodity futures trading and commodity options trading. Now, BSE and NSE also started offering commodity futures trading services.

One who wishes to start commodities trading in India must open a commodity trading account with a broker. Many discount and full-service brokers offer commodity trading services to customers. Discount brokers such as Zerodha, Upstox, and 5paisa charge flat Rs. 20 brokerage on MCX trading, whereas full-service brokers like Motilal Oswal, HDFC Securities, and Sharekhan charge a % based brokerage fee based on trade volume. Some full-service stock brokerage firms like ICICI Direct, and Kotak Securities levy a fixed flat brokerage fee of Rs. 20 per order on trading in commodity derivative segment.

If you want to trade in different commodities yourself, then discount brokers are the best option to enjoy low-cost trading benefits. However, if you are new to the commodity derivative market, then better to go with full-service brokers who offer commodity research & advisory services. Find below a list of the top or the best brokers for commodity trading in India considering critical factors such as brokerage, commodity trading platforms, active users base, and customer support channel. You must select the right broker based on your specified requirements.

Best Commodity Trading Brokers in India 2022

Broker Brokerage Transaction charges Review Request Callback
ZerodhaFlat Fee Rs 20Non-Agri: Rs 360 Per Cr | Agri: Rs 275 Per CrZerodha ReviewOpen Account
UpstoxFlat Fee Rs 20Non-Agri: Rs 360 Per Cr | Agri: Rs 275 Per CrUpstox ReviewOpen Account
5paisaFlat Fee Rs 20Rs 260 Per Cr5paisa ReviewOpen Account
Angel OneFlat Rs 20 or 0.25% whichever is lowerNon-Agri: Rs 260 Per Cr | Agri: Rs 175 Per CrAngel One ReviewOpen Account
Alice BlueFlat Fee Rs 15Non-Agri: Rs 360 Per Cr | Agri: Rs 275 Per CrAlice Blue ReviewOpen Account
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  • Sharekhan0.1% or 10 paisaNon-Agri: Rs 260 Per Cr | Agri: Rs 175 Per CrSharekhan ReviewOpen Account
    Motilal Oswal0.05% (both side)Non-Agri: Rs 260 Per Cr | Agri: Rs 175 Per CrMotilal Oswal ReviewOpen Account

    Commodity Trading Pros and Cons

    Pros/Advantages Cons/Disadvantages
    • Portfolio diversification.
    • Exposure to the global market.
    • Extended market timing from 10 AM to 11 PM.
    • Commodity can be used to hedge against other asset class.
    • High risks due to extreme volatility.
    • Cyclical nature of commodity market thus, exposed to economic and geopolitical factors.
    • Commodity trading is speculative thus, involves very high risk.

    Best Commodity Trading Brokers in India 2022 - Final Verdict

    Zerodha is the best broker for commodity trading with Rs. 20 flat brokerages charged on commodity F&O trading. The broker offers superfast and easy-to-use Kite web and mobile app-based online commodity trading platforms. Upstox and 5paisa are the other top discount brokers to open commodity trading accounts with. However, if you are a newcomer and want to look for commodity research then ICICI Direct and Kotak Securities are the two top full-service brokerage firms to trade in commodities.

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    Zerodha FAQs

    There are many factors to be checked before selecting the best broker to start commodity trading. If you are a commodity trader, then here is a list of pointers prepared for you to choose the best commodity trading broker;

    1. Registered member or affiliation: Before choosing anyone, make sure to check whether the broker is a registered member of the commodity trading exchange (MCX and NCDEX) or not.
    2. Brokerage fee: Undoubtedly, the brokerage charged on MCX trading is one of the critical factors to check. You may prefer discount brokers or those full-service brokers who charge a flat brokerage price on trading in commodities.
    3. Trading Platforms: Commodity traders must check for a dedicated commodity trading app, while advanced traders can check for the commodity trading software.
    4. Active customers: The customer base is an important factor to measure how reliable or trustworthy a broker can be. A higher active clientele base indicates that a broker is very popular or vice-versa.
    5. Customer support: Check all the possible modes available with your broker to provide customer support such as email, telephonic assistance, chatbot, and offline support.

     

    If you're looking to start online trading in the commodity at the minimum brokerage, then Zerodha is undoubtedly the best commodity broker. It is India’s largest discount brokerage firm that charges Rs. 20 flat fee on MCX futures & options trading regardless of the trade value. Its Kite platform is a superfast, multi-linguistic, intuitive UI, and feature-rich commodity trading platform available in web and mobile app versions.

    To trade in commodities, you must open a Zerodha commodity trading account. The broker charges Rs. 200 commodity trading account opening fees from clients.

    Zerodha Commodity Trading Review

     

    Likewise, stock market trading is where you purchase and sell a company’s shares, in commodity trading, you buy and sell commodity products such as metal commodities, energy commodities, and agro commodities. Although trading in commodities helps in portfolio diversification and hedge against risks, however, at the same time, it is subject to a high degree of risk. Therefore, beginners must have a basic understanding of the commodity market segment including what are the types of commodities available, and how to trade in commodities. Newbies can consider full-service brokerage firms that offer commodity trading research & advisory services to make a better d

     

    If you are new to the commodity trading market, you must go with full-service brokerage firms. Before starting, it is advisable to learn about commodity market basics such as commodity futures and commodity options, commodity trading process, etc. You can open a commodity trading account with top full-service commodity brokers who offer commodity research services to customers.

    ICICI Direct, Sharekhan, Kotak Securities, and Motilal Oswal are the recommended full-service commodity traders to open an account with. ICICI Direct , the top full-service brokerage firm with the highest customer base, has a fixed brokerage plan at a flat brokerage fee of Rs. 20 per order commodity trading.

     


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