Among different types of stock trading, commodity trading is a popular option. If you are willing to trade in commodities, it is necessary to choose the best commodity broker in India that can help you at every step of this endeavor. While choosing from the top 10 commodity brokers in India, do pay attention the broker which offers the best commodity app in India.
Commodity market in India is largely understood by two categories – spot market and derivatives market. The spot market is a platform where commodities are exchanged for immediate delivery or typically within 4-5 days. In contrast, the futures markets involve transactions that will be fulfilled at a later date, usually 1 month, 2 months, or 3 months in the future. While the functioning of commodity markets in India predominantly revolves around the futures market, it’s crucial to acknowledge the significance of the spot market as well. And most importantly, the role of commodity brokers in India and the best commodity trading app are paramount as they enable faster, safer, and effective commodities transaction. In this post, you will get to know all major elements related to commodity trading and the top 10 commodity brokers in India.
What Does Commodities Mean?
The resources or raw materials that are homogenous in nature and have intrinsic worth and are utilized to make refined goods are called commodities. It may be classed as any type of moveable product that can be purchased and sold, except money and claims that can be brought to court. Although the quality of goods may vary, some criteria must be largely similar between producers.
What Are The Different Types Of Commodities?
According to statistics, there are over 100 types of commodities that get traded in nearly 50 commodities across the globe. These commodities are divided into four categories.
- Metal: Along with precious metals like gold, silver, and platinum, a wide range of metals, including those used in manufacturing and construction such as iron, copper, aluminum, and nickel, are accessible for trade on the market.
- Energy products: Items used in homes and businesses that utilize energy are traded in large quantities. These are oils and natural gas. Uranium, ethanol, coal, and electricity are additional energy commodities that are traded.
- Agriculture-related items: The commodities market oversees trading in a plethora of agricultural and livestock products. Take, for instance, sugar, cocoa, cotton, spices, cereals, oilseeds, pulses, eggs, feeder cattle, and a variety of other products.
- Environmental goods: This category of commodity covers carbon emissions, white certifications, and renewable energy sources.
What Is A Commodity Trading App?
A commodity trading app is much like a typical stock trading app which enables traders to trade in various commodities. Today, all major stockbrokers in India use a single stock trading which can be used by traders and investors to invest in various stock market instruments such as equities, currencies, commodities, mutual funds, IPOs, and others. In order to get a fabulous commodity trading experience, choosing the best commodity trading app is extremely important.
Commodity Trading in India
Commodities were allowed in 2001, and the MCX and the NCDEX opened for business in 2002. However, only a few commodities saw a very strong increase in volume. The commodity markets initially exclusively provided futures on commodities. The commodity futures market, however, provided both speculation-based trading and delivery-based trading because it is a market for commodities. This indicates that the exchange has agreements with warehouses to provide the underlying product to the two parties at a guaranteed price. The exchange served solely as a forum, and the parties themselves bore the risk.
There is a total of 6 commodity exchanges in India that enable the trading of commodities. They are:
- Multi Commodity Exchange – MCX
- National Commodity and Derivatives Exchange – NCDEX
- National Multi Commodity Exchange – NMCE
- Indian Commodity Exchange – ICEX
- Ace Derivatives Exchange – ACE
- The Universal Commodity Exchange – UCX
What is MCX and how does it function?
MCX refers to Multi Commodity Exchange of India Limited. It is the first listed exchange of India. This exchange facilitates trading of commodity derivatives transactions online. It started operating in 2003 and is a registered member of the Securities and Exchange Board of India (SEBI).
The functioning of MCX is very much similar to the working of Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It provides commodity derivative contracts across various categories like metals, agriculture commodities, energy, and others.
What Are Commodity Brokers?
Just like typical stock brokers, commodity brokers work as an intermediary between a traders and commodity exchange and enable easy and seamless trading of commodities. The role of commodity brokers in India is paramount as they leverage the power of their experience and technology to deliver unparalleled value to the overall commodity trading process. Additionally, commodity brokers attract new clients; without them, there would be far less trading on the commodity markets.
In the next section of this post, you will get to know the top 10 commodity brokers in India. Also, if you want to get the best commodity trading app in India, all these stockbrokers have fabulous trading software systems for both mobile and desktop. This way, you can easily choose the best commodity broker in India.
Top 10 Commodity Brokers In India
If you are looking to trade in commodities through the best commodity broker in India, it is necessary to choose the right commodity broker that can understand your investment objective and deliver wonderful value to both the exchange and the trader. For your reference, we have highlighted the top 10 commodity brokers in India you can choose to consider.
|S.No||Commodity Broker Name||Commodity Brokerage||Rating||Best Offers|
|1||ICICIdirect||Rs. 20/order||9.8||Click Here|
|2||Angel One||Flat Rs 20 or 0.25% whichever is lower||9.2||Click Here|
|3||5Paisa||Flat Rs. 20 per order||9||Click Here|
|4||Upstox||Flat Rs. 20 order||8.7||Click Here|
|5||Sharekhan||0.1% or 10 paisa||8.5||Click Here|
|7||HDFC Securities||0.02% for intraday, 0.025% for positional||8||Click Here|
|8||Zerodha||Flat Rs. 20 per order||8.0||Click Here|
|9||Kotak Securities||Delivery charges Rs.20 per trade, free intraday charges||7.9||Click Here|
|10||Axis Direct||0.03%||7||Click Here|
Let’s take a close look at them.
1. ICICI Direct
ICICI Direct is one of the best full-service stockbrokers in India. Being a part of the prestigious ICICI Group, the stock broker is known for its superior levels of reliability and legacy. The stock broker offers a wide range of services that include equity, commodity, and currency trading at BSE, NSE, and MCX. ICICI Direct also offers Mutual Fund & IPO, Fixed deposits, Bond, NCD, wealth products, Home Loans, Loans against Securities, etc.
There are many benefits of trading in commodities with ICICI Direct that include:
- Easy and seamless transfer of funds
- Research advisory
- Steadfast trading platform
- Robust risk management
- Daily morning/evening reports
- Commodity outlook
- Smaller lot sizes
- Lower margin is required
- Easy to understand commodities
- Longer trading hours
2. Angel One
Angel One is another popular stockbroker that is preferred by traders for commodity trading in India. It is one of the top 10 commodity brokers in India. If you are looking for the best commodity broker in India, this is one name you can always rely upon. Angel One offers a wide range of benefits to traders looking to trade in commodities in India. They include:
- Best commodity trading app
- Different types of reports – fundamental, technical, and special
- 1 million satisfied clients
- Dedicated relationship manager and dealer
- Widespread network of 11000 sub-brokers
- Excellent present in 900+ cities across the country
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Among the to 10 commodity brokers in India, 5Paisa is a remarkable name in the stockbroking industry. Being the best commodity broker in India, 5Paisa offers a wide range of products & services to its clients through its state-of-the-art trading platforms available across different channels. Whether you are a new investor or a seasoned one, 5Paisa lets you trade in different commodities easily and quickly. Let’s get to know more about the benefits of commodity trading through 5Paisa.
- Trade in commodity derivatives
- Single account to trade in equity, commodity, and other categories
- No extra commodity trading account opening charges
- Enjoy up to 2x exposure on MCX commodity trading
- Trade at a flat brokerage of Rs. 20 per order
- Trade in commodity using best-in-class trading software systems
Upstox is another best commodity broker in India and enables faster and reliable commodity trading services to its clients. Trading, analysis, charting, and many other advanced trading functions are available on the Upstox trading platform. This technology makes it simple to place orders online and using mobile devices. The Order Management System (OMS) and Risk Management System (RMS) of Omnisys NEST are the foundation of the Upstox trading platform.
- Brokerage of up to Rs. 20 per order
- Easy, quick, and simple order placement
- Advanced tools for quick stock analysis
- Option chain with strategy mode
- TradingView and ChartsIQ
- Trade in commodities anytime, anywhere
- Easy way to check gains
Sharekhan is another wonderful stockbroker chosen by a majority of investors and trades for commodity trading. Established in 2000, Sharekhan has come a long way in offering unparalleled trading services to its clients across all segments including commodity. At present, Sharekhan.com, the company’s online trading platform, provides brokerage services. The current physical placement of offices, which includes branches and franchisees in more than 550 sites, is in 1800 offices across India. The company has operations in countries including Oman and the United Arab Emirates.
Below are the reasons why you should Sharekhan for commodity trading:
- Augmented margin value
- Advanced trading tools
- Live market feeds
- Technical indicators
- Weekly research report – Commodity Brave Heart
- Smart chart calls
- Commodity Eagle Eye – Day research report
IIFL stands for India Infoline and considered the best commodity broker in India. IIFL provides services in a number of areas including equity, commodities, currencies, derivatives, and so on. Strong internal research teams and first-rate customer support systems back up these offerings. The IIFL’s own trading terminal, Trader Terminal, makes it easy to trade commodities by allowing access via desktop applications and browser-based online applications.
Its major features are:
- Invest in commodities like silver, gold, copper, crude oil, and others.
- Enjoy the benefit of margin trading
- Embrace superior levels of liquidity
- Price alerts
- Free trading tips
- Brokerage of ₹20 or 0.05% per trade (whichever is lower)
- Margin calculator
7. HDFC Securities
HDFC Securities is another well-known brokerage firm in India. It belongs to HDFC Bank as a totally owned subsidiary. The company serves as a platform for both online and telephone trading. Additionally, they provide a three-in-one account to its clients. With this account, trading, banking, and the Demat account are all made simpler. This feature aids in the efficient transfer of payments.
The company also provides day trading services on the NSE and the BSE, as well as Cash-n-Carry on both exchanges. You may easily trade futures and options on the NSE, as well as make online IPO investments.
- Trade in commodity derivatives
- Detailed research reports
- Timely notifications and alerts
- Easy access to research calls
- Extensive network of offices
Since Zerodha participates in the MCX, consumers may trade commodities including metal, bullion, agricultural products, and energy products. With the use of its web-based platform and mobile application, Zerodha provides online commodity trading. To be qualified to execute commodity orders, Zerodha needed traders to fund their Zerodha Commodity accounts with an acceptable margin.
The major features of commodity trading through Zerodha are:
- Zero annual maintenance charges for commodity trading account
- Enables trading futures on multi-commodity exchange
- Zero condition Demat account opening
- Settlement time is T+1 days
- No charges for inactivity in regard to commodity trading
- Trade in commodities through mobile app and browser-based platform
9. Kotak Securities
Kotak Securities is one of the fastest growing stockbrokers in India and considered one of the top 10 commodity brokers in India. The stockbroker offers its clients to invest in equities, derivatives, commodities, currency, and even mutual funds. They can also choose to invest in US stocks. Backed by over 2 decades of experience, Kotak Securities offers a wide range of services in a seamless manner.
The major benefits commodity trading through Kotak Securities are:
- Great real-time market updates
- Option to stay active 15 hours a day
- Streamlined asset management
- Seamless pay ins and pay outs
- 4 million clients
10. Axis Direct
A part of the prestigious Axis Bank Axis Direct emerges as the top choice for someone looking for the best commodity broker in India. Axis Securities Ltd., a company that focuses in financial services, was established in 2005. It is a full-service broker that offers customers stockbroking and the sale of financial products under the Axis Direct name in India. They rank among the top 10 stock brokers in India. Over 4-5 lakh clients are now working with the company.
Its major features are:
- 3-in-1 account opening
- Easy access to various market segments and financial tools
- Detailed research reports
- Margin funding
- Free trading calls
If you are looking for the best commodity broker in India, you can refer to the aforementioned top 10 commodity brokers in India. Whether you are a new trader or an experienced one, choosing the right stock broker makes a valuable difference to one’s overall trading experience. From easy account opening to brokerage, commodity trading application, a good commodity broker and the best commodity trading app makes this type of trading easy.
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Qu1. What does commodity trading mean?
Ans. The buying and selling of various commodities and the derivative goods derived from them is known as commodity trading. Any raw resource or basic agricultural product that may be purchased or sold is referred to as a commodity. Examples include wheat, gold, and crude oil, among many others. When you trade commodities, your asset portfolio can become more diversified.
Qu2. What is a commodity exchange?
Ans. A commodity exchange is a controlled marketplace where commodities are traded. Traders have the option to engage in futures contracts rather than taking actual delivery of commodities.
Qu3. What are the major commodities available for trading?
Ans. Gold, silver, crude oil, copper, natural gas, and agricultural products including coffee, wheat, and sugar are the principal trading commodities.
Qu4. Which type of commodity is best for beginners?
Ans. According to commodity trading experts, crude oil is the most preferred commodity that beginners can trade.