Over the last few decades, India’s financial markets have changed dramatically. Interested investors and traders can now choose from a variety of market segments. The commodity market is one of these choices. If you want to get into commodities trading in India, learning about the basics and finding helpful brokers is a great place to start.
Commodity trade is the purchasing and selling of raw commodities and the global economy’s base. It uses physical elements such as gold, silver, crops, oil, etc. Because of the constant impact of demand and supply on their pricing, these items’ prices are subject to change. Thus, commodity trading in India can include a high risk of immature investors. You can choose the most renowned and best commodity broker from among the top brokers for effective investing.
How Must You Select the Best Commodity Brokers in India?
A crucial stage in the investment process is selecting the best commodity broker in India. Many stockbrokers have encountered work because of the market’s expansive breadth. However, the impression of an efficient broker gets marked by both experience and credibility.
Your choice of stockbrokers should get based on the offers and fee waivers. When compared to stockbrokers, relying on commissions might often be fruitless. Check out the media demo or the app that gets advised for new investors before signing up for a stockbroker. You can trade in the commodity market by opening a commodity trading account. For intraday commodity trading, orders can get placed during marketing hours.
Investors may lose money if they rely solely on their stockbroker without conducting any market research. You should select a qualified broker for the entire deposit process. The top ten commodities brokers in India are listed below. They provide commodity trading solutions to investors and assist them in making commodity investments.
List of Top 10 Commodity Brokers in India
Here we have sorted out some best Commodity Broker in India:-
Sharekhan is the best broker in India and one of the country’s oldest and largest commodity dealers. Within the commodity broking area, it provides clients with regular suggestions and insights based on their portfolios. It’s an excellent broker for traders who are just getting started. It provides clients with various hand-holding solutions through emails, phone calls, and SMS notifications.
All you have to do to begin commodities trading with Sharekhan is open a Sharekhan commodity Trading Account. You can open a Sharekhan broker account online or offline, depending on your preference. Entities can get traded using Sharekhan’s website, mobile app, or Sharekhan Trade Tiger.
2. Angel Broking
The advantage of trading commodities with Angel Broking is that the company has been in business since 1987. It offers a technology-enabled trading and Demat account. In addition to that, it also provides fundamental and technical analysis. Angel Broking allows commodities trading because it is a registered trading member of commodity exchanges such as the Multi Commodity Exchange (MCX) and the National Commodity and Derivative Exchange (NCDEX).
Angel Broking requires investors to register a Commodity Trading Account to trade commodities. Notably, the brokerage business only allows citizens to deal in the commodity market, not NRIs. Before opening a commodity account, you should be familiar with the commodity trading process.
Futures and options are the two most common derivative products for investing. The former gives the right to buy or sell a certain amount of commodity at a predetermined future period. But options provide the right to buy or sell a specific entity at a future date but not the duty. You can get daily updates on commodity markets and commodities research reports from Angel Broking. As a result, Angel Broking is one of the best commodity trading brokers.
Upstox is an MCX member that provides customers with online commodity trading services. Customers can register a commodity trading account with Upstox online and begin trading on the MCX for a flat fee of ₹20 per order. Customers can business gold, silver, copper, zinc, oil, and other commodities through an Upstox commodity account.
A commodity trading account with the broker costs ₹150. However, the trading account with the AMC is free. Upstox Pro is the broker’s platform for trading different commodities. The Upstox Pro web and mobile app platform allow users to trade-off entities. It is one of the best commodity trading companies in India.
Customers of Zerodha, the largest commodity stock broker in India, may also trade commodities. Customers can buy and sell entities such as metals, bullion, energy products, and agricultural items through Zerodha, a member of the MCX. Zerodha MCX trading is a service that allows you to trade in commodity futures and options through Zerodha (F&O). In the MCX, Zerodha allows trading for Silver, Gold, Zinc, Copper, and Crude Oil.
To trade commodities, you must first request activation of the Zerodha Commodity Trading section. Only existing Zerodha Equity account holders or those who choose to register an Equity trading and Demat account combined with a Commodity trading account can open a commodity trading account with Zerodha. With Zerodha, you can’t just start a commodity account. If you already have a Zerodha account, you can activate the commodities trading segment online by paying ₹100 for the Zerodha commodity account opening fees.
5. Trade Smart Online
Trader Smart Online is the next name on the list for providing commodity trading best broker. TradeSmart is a Mumbai-based discount brokerage firm that specializes in stock, commodities, and currency trading. It is well-known for its excellent customer service. In the commodities area, it offers five times intraday leverage.
VNS Finance & Capital Services Ltd, often known as TradeSmart, is a traditional brokerage firm founded in 1994 to provide brokerage services to Indian stock, commodity, and currency market investors and trades through franchisees and sub-brokers. NSE Cash, NSE F&O, NSE Currency futures, BSE Cash, MCX Commodities, and CDSL depository services are all available through TradeSmart.
TradeSmart offers two different brokerage plans:-
- Power Plan (Trade at a Flat ₹15 Per Trade) – Trade-in equity (intraday, deliverable), futures and options (F&O), and currency for just ₹15 per completed transaction, regardless of size.
- Value Plan S [Trade at 0.007%]- Intraday trading in equity, equity F&O, commodities, and currency derivatives is 0.007%, equity delivery is 0.07%, and options are ₹7 per lot.
6. Motilal Oswal
Motilal Oswal Securities Ltd. (MOSL) is a Mumbai-based diversified financial services firm founded in 1987. MOSL is one of the most reputable commodity trading firms in India. The organization offers trading services in equities, commodities, currencies, and derivatives to its investors. Mutual funds, initial public offerings (IPOs), gold, insurance, and fixed income are some of the other products available. MOSL’s MOAMC discretionary Portfolio Management Service is well-known (PMS).
Since its introduction in 2003, the PMS has consistently exceeded the benchmark over multiple market cycles. Motilal Oswal’s varied client base includes retail consumers (including High Net Worth Individuals), mutual funds, overseas institutional investors, financial institutions, and corporate clients.
Three distinct trading programs are available through Motilal broking services. Customers could select one of these options based on their needs.
- Default Brokerage plan– Casual stock market investors should use the default plan. It is a fundamental strategy. Mainly the services are included, including free online trading software and access to research and consulting services. The brokerage fees for this plan are the highest.
- Value Pack Plan- The Value Pack is a prepaid brokerage plan that allows you to save money on brokerage by paying a one-time cost. This strategy has got designed for active traders. In the value bundle, there are seven options ranging in price from ₹2500 to ₹1 lakh.
- Margin scheme- The Motilal Oswal Margin Scheme is for those who trade frequently. When you commit more margin money to your trading account, the brokerage rates in this plan decrease.
7. HDFC Securities
HDFC Securities (HDFCsec) in HDFC Bank’s equity trading company. HDFC Securities offers both online and telephone trading. The HDFC Securities trading account features a unique 3-in-1 feature that combines your trading account with your existing HDFC bank savings account and Demat account.
HDFC Securities allows its clients to perform trading through its browser-based and Mobile App based trading application. They are considered as the best commodity trading platforms in India. They charge Brokerage of ₹23/- per Contract on Futures and 0.50% on equity delivery.
HDFC Securities is well-known for its services, which include:-
- Seamless Transactions – By connecting your accounts, HDFC Securities ensures that the movement of your funds and shares takes as little time as possible.
- Speed– Orders get placed electronically, so funds are immediately available.
Safety and Security- HDFC Securities provides the highest level of security, including 128-bit encryption technology.
8. ICICI Direct
ICICIdirect is one of India’s most well-known retail stockbrokers and a member of the ICICI Group. It has approximately 50 lakh users who use its online trading and investment services. At the BSE, NSE, and MCX, equities, commodity, and currency trading are available. Mutual funds and initial public offerings are also available, as well as fixed deposits, bonds, NCDs, wealth products, home loans, and loans against securities.
When it comes to brokerage services, ICICI provides four options to its clients:-
- ICICI Neo Plan- In Equity Futures, the ICICI Neo Plan provides brokerage-free trading. Intraday and F&O brokerage are ₹20 per deal, and Equity Delivery brokerage is 0.55%.
- ICICI Prime Direct Plan- When selling shares, the ICICIdirect Prime plan cuts brokerage fees while ensuring that money is received immediately in their bank account. Members of this plan also have access to exceptional research.
- I-Secure Plan- This plan provides Flat Brokerage (in %) regardless of the turnover. This plan is ideal for traders and investors who want a guaranteed fixed brokerage.
IIFL Securities, founded in 1995, is one of the full-services commodity brokers in India. IIFL Securities is a division of the IIFL Group, a renowned financial services firm with various offerings. The quality of its counsel, customized service, and utilization of cutting-edge technologies have made IIFL a well-known brand. IIFL Securities offers online trading and research-based consulting for various financial instruments, including equities, derivatives, commodities, insurance, FDs, loans, IPOs, and bonds.
IIFL has a straightforward flat-rate brokerage arrangement. This bargain brokerage service allows you to trade stocks without paying a commission. It charges a set rate of ₹20 per executed order for all other segments.
10. Kotak Securities
Kotak Securities Ltd got established in 1994 as a subsidiary of Kotak Mahindra Bank. In India, they provide stock brokerage services and distribute financial products. They serve 11.95 million clients through 1209 branches, franchisees, and satellite offices. They are Bombay Stock Exchange and National Stock Exchange corporate members.
As a full-service broker, Kotak Securities may provide the impression of high brokerage fees. The cost has effectively decreased since the introduction of the Kotak trade-free plan, making it a popular choice.
So, these are the top 10 Commodity Brokers in India.
Bonus Listing of Commodity Brokers in India
While you might find many commodity brokers in India, there are a few others that also offer extensively valuable investment with surpassing portfolio growth. Determined with evolved technology and the latest market offerings, these companies function to offer the best diversification and advantages that will prove beneficial to your portfolio. Listed below are a few companies that can be a bonus and further elevate your investments.
Aditya Birla Money Ltd (ABML), a subsidiary of Aditya Birla Capital Limited, was founded in 1994 and is located in Chennai. Apollo Sindhoori Capital Investments was the company’s last name. It is a stockbroking firm that is a member of the BSE and NSE.
Securities broking, portfolio management, depository, and e-insurance repository services are just a few of the services provided by ABML. It also distributes a variety of other financial goods. It is indeed one of the best commodity brokers in India for intraday commodity trading.
Prabhudas Lilladher was one of the first few brokerage firms that successfully introduced a new dimension to the business. A Prabhudas Lilladher Trading account is suitable for investors who want to trade without hassles. It was founded in 1944 and offered traders some extraordinary investing opportunities. There are outstanding Prabhudas Lilladher Online Trading solutions that may make the entire trading process simply because they can become helpful from one’s own home.
The Multi Commodities Exchange of India Ltd’s PL commodities market is a regular, full-time, and the country’s best commodities houses dealer. PL’s commodity trading team assists investors in making informed investing and trading decisions in billions, metals, crude oil, and other commodities.
Goodwill was created in 2008 and has since grown to become one of the country’s biggest commodities houses and the country’s largest distribution network, offering a diverse variety of investment and financial services. It has a customer-driven strategy and foundation which strives for putting the customer first always. It uses innovative and integrated which enables the customers to trade comfortably. The account opening process is easy with them. Their professionals assist investors in acquiring knowledge, trading, and training.
Goodwill provides one of the best commodity trading platforms in India. They provide the most advanced technology for enabling trade processes from any location, at any time. It also facilitates browser base, mobile trading, etc. It offers a hassle-free, timely support system for the clients. It has custom products which fundamental training and extensive research at all the goodwill branches and webinars.
RMoney provides sophisticated stock trading platforms. Bullion, agricultural, non-agriculture, metal, and other commodities can all get traded on a single screen. You can conduct commerce using your smartphone or the internet. Exclusive research reports, commodities expert comments, and technical quotes are available. A free online commodity trading account can get opened. Furthermore, you can use a fast commodity trading platform for the cheapest brokerage fee.
FAQs on Commodity Trading
Q. What is commodity trading?
Ans. Commodity trading refers to the buying, selling, and trading of commodities like metals, agricultural produce, crude oil, and livestock. In India, this type of trading gets typically done through derivative contracts like commodity futures and options.
A commodity derivative contract such as futures and options extracts its worth from the fundamental asset from the commodity. These vital commodities are raw materials or essential products like gold, silver, rice, wheat, crude oil, and so on, rather than a manufacturing method. Commodity trading gets generally carried out in heaps, such as barrels of oil, kgs of wheat, bushels of corn, etc. When it reaches maturity, you can either get the physical transfer of the product or done with cash, according to the contract terms.
People tend to make profits from the fluctuation in the prices of commodities without directly putting money in futures or other derivative apparatuses via exchange-traded funds or exchange-traded notes.
Q. What work does a commodity broker do?
Ans. Commodity brokers facilitate the trading of commodities in the stock market.
Commodity brokers can get defined as traders on the floor of a stock exchange who execute trades on your behalf. Or, they may feature a trading platform that assigns and executes trades in an electronic form. The commodity exchanges depend heavily on brokers to invite business to the swaps. They follow their own rules to define how the brokers do business exchanges.
Q. Commodity Brokers: What Are They?
- Commodity traders or commodity trading companies in India refer to people or businesses that buy and sell physical commodities like metal or oil.
- Commodity traders hope to profit from predicted trends as well as arbitrage opportunities.
- Commodity traders may aim to get a supply of raw material for an industrial unit or business entity to help to promote liquidity in a global market or invest in their capacity.
Q. How to find the best commodity broker in India?
Ans. Here are some proven tips on picking up the best commodity broker in India.
- Get a commodity broker backed by several years of relevant experience in commodity trading.
- A broker with an impressive total worth means he is a skilled broker.
- Measure the brokerage charges. Brokers who offer discounts and reasonable fees are usually preferred. Some brokers give rebates only in the case of a fixed trading volume.
- Choose a commodity broker with an excellent client support system.
- The broker should also be able to provide insightful trading tips and other research stuff related to commodity trading.
- Brokers should also provide help regarding the opening of a new commodity trading account.
- It should have a user-friendly trading platform.
Q. Which are the cheapest commodity brokers in India?
Ans. Here are the cheapest commodity brokers or commodity trading companies in India.
₹20 per trade or .03% whichever is lesser
₹20 per trade or 0.05% whichever is lesser
₹20 per trade
₹20 per trade
Q. What are the merits and demerits of commodity trading in India?
Ans. There are many merits of commodity trading which include:-
- A Better Chance for Growth: The supply and demand concept governs commodity markets. So, a surge in demand will have an immediate influence on pricing. Therefore, allowing yielding higher profits in a fixed time frame.
- Diversification: Diversification of your portfolio safeguard you in the case of abrupt lows and helps to keep your investment portfolio steady. The commodity market is the most sought-after hub of diversification from your investments in stocks and bonds by equivocation. Commodity investment is used as a hedging instrument to avoid market risks.
- Security against Price Rises: Inflation could damage daily stock traders as, during the inflation phase, there can be a decrease in your income from stocks and bond investments, but commodities typically remain stable during inflation. The reason is that any increase in the prices of goods and services will lead to a demand surge for entities required for production, thus increasing the costs.
Demerits of Commodity Trading
Extreme Unpredictability:- Compared with the other asset classes, commodities are considered one of the most volatile. According to research, the commodity market features double the volatility of the stock market and four times the volatility of the bonds segment. High volatility makes the commodity market riskier for commodity traders.
High Risk:- Commodity trading of items like crude oil needs a high-risk bearing capacity. The commodities market has its dangers, so it’s critical to assess your risk profile before diving into commodity trading.
Q. Can we do intraday trading in commodities?
Ans. Yes, you can do intraday commodity trading easily. As the commodity market in India starts trading at nearly 9 AM and extends till 11.30 PM, it is known as an excellent avenue for intraday trading.
Q. Which commodity is best for intraday trading?
Ans. Though commodity booking can get done on a range of commodities, the five most promising commodities in the present scenario are crude oil, copper, aluminum, natural gas, and gold.