Best Brokers for Commodity Trading in India-2017


Commodity trading is nothing but trading in commodity spot and derivative Futures and Options. Commodity Options trading on MCX is recently launched in India. Retail investor should understand that the returns from commodity trading depends on price change of the respective commodity and it a variant of demand and supply. As the demand of any product increases, the price also increases and over supply of any product leads to fall in its price.

Commodity Trading in India can be done on the Commodity Exchanges. Multi-Commodity Exchange (MCX) and National Commodity and Derivative Exchange (NCDEX) are two major commodity exchanges in India along with other exchanges. Gold, silver, agri-commodities including grains, pulses, spices, oils and oilseeds, mentha oil, metals and crude oil are some of the commodities that these exchanges deal in. Gold is the most traded contract on MCX. There are different gold contracts available to trade in. Gold (The Big Gold),Gold Mini, Gold Guinea and Gold Petal.

Commodity Derivative market in India is regulated by SEBI. Margin money is required upfront to take positions in commodity future contracts. Margin percentage varies between 4% to 10% depending upon various factors.

You need a broker who is members of these commodity exchanges to trade in commodities. You have to open a separate account or request specifically ( in case of new account) separately (in case of existing account) to trade in commodity. Most full service brokers (like Sharekhan, Angel Broking, IIFL etc) offer commodity trading and add on services like research reports, tips & recommendations and relationship managers to facilitate your trading. Brokerage charge by them is percentage based on lot size. Discount brokers (like Zerodha, Upstox, Tradingbells, SAMCO etc) charge flat fee whether you buy 1 lot or 10 lots.

Commodity trading is not available with the brokers that are associated with Banks or providing 3 in 1 accounts. ICICIDirect, HDFC Securities, SBI Securities, Axis Direct doesn’t offer commodity trading.

Below you will see the best commodity brokers in the industry but we will recommend you to choose wisely based on your preferences:


Zerodha

Rated-4.5/5 Overall

Zerodha Logo
Read the Zerodha Review

Zerodha is the leading broker at present who you can trust and bank on for all your commodity trading needs. They have education to well designed trading platform to low brokerage, all you need for trading smoothly. Zerodha  doesn’t allow you to get into the physical delivery of commodities. So you will be forced to close the position before 1st of the expiry month.

Benefits of commodity trading with Zerodha:

  • ₹20 or 0.01% (whichever is lower) per executed order on intraday trades in commodity on MCX.
  • Superb online education on Varsity for all you want to know about Commodity trading.
  • In house, advance trading platforms KITE and Pi over web, desktop and mobile app.
  • Margin Calculator available to calculate margin requirements for NRML and MIS, BO and CO in Commodity Segment.
  • Best Broker in current scenario in terms of innovative ideas, technology, customer support and brokerage charges.

Special Offer:100 Rs off on account opening fee for limited time. Sign up now.

Angel Broking

Rated-4/5 Overall

Angel Broking Logo
Read the Angel Broking Review

Angel Commodities Broking Pvt Ltd is a member of MCX & NCDEX and allows trading in all the commodities. Angel is a full service broker and provides all basic services like online trading, call and trade, tips and recommendations by special team of research analysts.

Benefits of commodity trading with Angel Broking:

  • Free Commodity Trading Account.
  • Easily accessible in your local city as Angel has branches in more than 900 cities in India with more than 8500 sub brokers and partners.
  • Margin Funding available with high exposure.
  • Services of Relationship Managers and dealers available for personal assistance.
  • Extensive comprehensive research and analysis, get fundamental, technical and special reports.
  • Provide tips and recommendation through SMS, email and phone.
  • Brokerage charge is .01% to .04%.

Special Offer:Free Life time Demat AMC & *Trading AMC and Flat 20% discount on for online transaction Sign up now.

Sharekhan

Rated-4/5 Overall

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Read the Sharekhan Review

ShareKhan is the leading full service broker offering equity and commodity trading on one platform. The broker offers commodities trading facilities on MCX and NCDEX at the brokerage of .1%.

Benefits of commodity trading with ShareKhan:

  • Huge Network of more than 1950 share shops in 575 cities.
  • Single trading platform for commodity along with all other segments.
  • High quality, daily research reports including fundamental and technical short term-long term positional calls & intra- day calls.
  • Dedicated Relationship Manager provide online and phone support, online trading support through messenger, online risk management software and round-the-year workshops for learning.
  • Robust trading platform ComTiger for desktop, Sharemobile app for smarphone.
  • Also trade through local outlets or call and trade service for free.

Special Offer:Zero Account Opening fee. Sign up now

Tradeplus Online

Rated-3.5/5 Overall

Tradeplus Online Logo
Read the Tradeplus Online Review

Tradeplus provide commodity trading in non-agri products at the lowest brokerage cost with monthly plan but doesn’t provide any RM, research, tips or recommendation.

Benefits of commodity trading with Tradeplus:

  • Infinite commodity Plan of Rs 99 per month for unlimited commodity trading on MCX.
  • Lowest Transaction charges in MCX Commodity segment - 400 Rs per crore.
  • Brokerage refund if you don’t trade in any month.
  • 2 times intraday leverage on all Metals and Energy.
  • Robust trading Platform INFINI -TRADER(NEST) for trading exclusively in commodity segment.
  • Technical Analysis tool INFINI-POWER to support your trading.

Special Offer:Waiving off Account opening of Rs 199 i.e. zero trading account opening fee for limited time.If KYC is completed and submitted within 2 days of contacting us.

In contrary to equity settlement, in commodities the settlement is physical and therefore ‘delivery’ is compulsory. However you can square off your position on 1st of the expiry month to avoid physical delivery of commodity.  In order to get the delivery of the commodity, one has to express his intention to do so. This has to be done any time before 4 days to expiry. So given that the expiry is on 5th, one has to express his intent to take delivery anytime on or before 1st.

Key Advantages of Commodity Trading:

  • Commodity is less volatile than equity.
  • You get exposure to global market.
  • Commodity futures have extended timings from 10.00am to 11.30pm (11.55 during day light saving).
  • Hedge against other Asset Class.
  • Commodity futures perform better in periods of inflation.
  • Portfolio diversification.

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Guaranteed Save 60% to 90% Brokerage + Taxes

ProStocks, The Flat Rate Discount Stock Broker

Fix Price - Rs 15 Per Trade


Rs 899/Month,8999/Year for
Equity Cash and F&O

Rs 499/Month,4999/Year for
Currency Derivatives

Lowest Transaction Charge
Lowest Call & Trade Fee
Lowest Stamp Duty

Get FREE Trading + Demat Acct

Zerodha  Zerodha

Free Delivery trading

Max Rs 20 Per Trade for F&O

zerodha

Sharekhan

Beginner, seasoned investor, active trader or HNI. Get customised solutions.

Rs 0 account opening fee on Online Trading and a Demat Account
(Rs 1150 waived)

sharekhan

angel-broking  Angel Broking

Free Equity Delivery Trades
Flat 20% discount on online transaction

angel-broking



Sub brokers by name

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