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Best Commodity Trading Brokers in India 2023

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Top 10 best commodity trading brokers in India 2023

Any stockbroker registered with commodity exchanges provides commodity trading services. Do you trade commodities? If yes, here is a complete list of 10 best or most popular commodity trading brokers in India with the cheapest broker fees, best platforms, good client base and commodity research.

What is Commodity trading or MCX trading?

Commodity trading means buying and selling various types of commodities or financial instruments of commodities. Commodity traders trade commodity futures and options contracts on commodity exchanges. Traders can trade in commodities such as metals (gold, silver, zinc, etc.), energy, and agricultural commodities.

There are two popular commodity exchanges in India;

  • Multi Commodity Exchange of India (MCX)
  • National Commodity and Derivatives Exchange Ltd (NCDEX)

A stockbroker who is registered as a member of these two exchanges allows his clients to trade in commodities.

How to select the best broker for commodity trading

To start trading in commodities, you need to open a commodity trading account with a broker. Many full-service brokers and discount brokers in India offer commodity trading services.

Discount brokers like Zerodha, Upstox, and 5paisa charge Rs 20 flat brokerage fee for MCX trading but do not offer commodity research. On the other hand, full-service brokers like HDFC Securities, Motilal Oswal, Sharekhan, etc. charge a higher percentage of brokerage fees but offer commodity trading tips, research and advisory. They may charge commodity trading brokerage fee of 0.03% to 0.05% of the trading value.

Which one you should choose depends on your requirements. If you are new to commodity trading, you can opt for a full-service broker, while if you are looking for the cheapest commodity trading brokers, you should open an account with a top discount broker.

An indicative list of factors to be checked to select the best commodity trading brokers in India;

  • Reliable and trustworthy broker
  • Number of active customer base
  • Ultra-low or flat brokerage pricing model
  • Easy and user-friendly trading platform
  • Good customer support

On this page, we present you the top 10 most popular brokers for commodity trading including full-service and discount brokers. You can consider these top brokers for opening a commodity trading account.

List of Top 10 best Commodity Trading Brokers in India 2023

Broker Brokerage Transaction charges Review Request Callback
ZerodhaFlat Fee Rs 20Non-Agri: Rs 360 Per Cr | Agri: Rs 275 Per CrZerodha ReviewOpen Account
Angel One0.25% or Rs 20 whichever is lowerNon-Agri: Rs 260 Per Cr | Agri: Rs 175 Per CrAngel One ReviewOpen Account
5paisaFlat Fee Rs 20Rs 260 Per Cr5paisa ReviewOpen Account
UpstoxFlat Fee Rs 20Non-Agri: Rs 360 Per Cr | Agri: Rs 275 Per CrUpstox ReviewOpen Account
Alice BlueFlat Fee Rs 15Non-Agri: Rs 360 Per Cr | Agri: Rs 275 Per CrAlice Blue ReviewOpen Account
Sharekhan0.1% or 10 paisaNon-Agri: Rs 260 Per Cr | Agri: Rs 175 Per CrSharekhan ReviewOpen Account

Zerodha Trade@20

Want to start your investment journey, join India’s number one online broker – ZERODHA – Free Delivery Trade, Maximum Rs 20 for F&O and Intraday, Free Direct Mutual Fund investment.Open Zerodha Account

Commodity Trading Pros and Cons

Pros/Advantages Cons/Disadvantages
  • Helps to diversify your portfolio and hedge against other asset classes
  • Commodity market remains open from 10 AM to 11:30 PM
  • Protection against inflation
  • Exposed to economic and geopolitical factors
  • Commodity trading is highly risky as vulnerable to extreme volatility
  • You may lose excessive leverage quickly even at small price movement

Best Commodity Trading Brokers in India - Final Verdict

Zerodha is ranked on the top commodity brokers with a Rs 20 flat commodity brokerage fee and the super-fast and easy-to-use Kite web and app platform. Angel One is another recommended full-service offering discount broker in the list that offers flat commodity brokerage and also provides commodity research to users.

ICICI Direct, Kotak Securities and Sharekhan are the best full-service brokers for commodity trading. Beginners who want to get into commodity trading can consider these brokers for trading on MCX.

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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