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Zerodha Commodity Trading 2024

Rated 4.5/5 by InvestorGain Team
Zerodha Commodity Trading
  1. The Pioneer Discount Broker
  2. Get 100% Free Delivery Trading
  3. Free Direct Mutual Funds & SIP

Zerodha is a trading member of MCX and NCDEX to offer an online commodity trading facility to its clients. To start trading on MCX, you have to open a Zerodha Commodity Trading Account that allows users to buy and sell different types of commodities. The discount broker charges flat Rs. 20 per order brokerage or 0.03% whichever is lower on commodity trading. Zerodha Kite commodity trading app and the web is the platform for MCX trading. The broker also provides a margin facility on commodity trading in Zerodha. Let’s get the complete Zerodha Commodity Trading Review including brokerage charges, commodity trading platform, margins, orders, and more.

Zerodha Commodity Trading Account| Commodity Trading in Zerodha

You can trade-in commodities with Zerodha by opening a commodity trading account. If you have an activated commodity account, then you can trade-in the following types of commodity futures & options contracts on MCX.

  • Gold
  • Silver
  • Crude oil
  • Copper
  • Zinc

Zerodha Commodity Account Opening Charges

S. No. Particulars Fee
1. Zerodha Commodity Trading Account opening fee [Online] Rs. 100
2. Zerodha Commodity Trading Account opening fee [Offline] Rs. 200
3. Zerodha Commodity Account Maintenance Charges Nil

Zerodha Commodity Account Opening Process

A commodity account in Zerodha can be opened online or offline as per your choice and start online trading on MCX.

  • New customers: If you are a new customer then you have to open an equity trading account + commodity trading account + Zerodha Demat account. The process to open a commodity account is the same as the equity account opening, just make sure to select the commodity segment as well.
  • Open Zerodha Commodity Trading Account online
  • Existing customers: If you already have an equity trading + Demat account with Zerodha, then you just need to activate the commodity trading segment.

Zerodha Commodity Trading Brokerage

Zerodha charges a maximum of Rs. 20 per executed order brokerage on commodity futures & options trading.

S. No. Particulars Brokerage
1. Commodity Futures trading brokerage Rs. 20/executed order or 0.03%, whichever is lower
2. Commodity Options trading brokerage Rs. 20/executed order or 0.03%, whichever is lower

Zerodha Commodity Trading Orders

  • NRML order: NRML stands for Normal margin order in the commodity derivative segment to carry forward the positions.
  • MIS order: Margin Intraday square off is an order that must be squared off before the: market closure. If MIS positions are not closed then the Zerodha RMS team will automatically square it. Zerodha commodity intraday (MIS) auto square off time is 25 minutes before the market closure.
  • Cover order: Zerodha allows a Cover order (CO) on commodity trading that is placed with a compulsory stop-loss order. The broker offers higher leverage on cover orders than MIS orders.

Zerodha Commodity Trading Margin

S. No. Particulars MCX margin
1. Zerodha commodity intraday margin [MIS] 2X or 50% of NRML margins
2. Zerodha commodity cover order margin 3.33X (30% of NRML margins)

Zerodha Commodity Segment Activation

To start commodity trading on MCX, existing Zerodha clients just have to enable the commodity segment that can be done online or offline.

Zerodha Commodity Trading Form

The commodity account opening form is available on the broker’s website. Steps to download Zerodha commodity form:

  • Visit the Zerodha website.
  • Go to the “Downloads & Resources” option.
  • Under the “Commodity” head, click on the “Application form-Individual”.

Download Zerodha Commodity Form

Zerodha Commodity Trading Platform

  • Zerodha Kite is the platform for online trading in commodities that is available in web and mobile versions. Zerodha Kite app (Android and iOS) is a commodity trading app that allows commodity trading at your fingertips.

Zerodha Commodity Account Login

  • Users don’t need separate login credentials to access commodity account. You can use the same Zerodha Kite login credentials i.e. user ID and password to login to the Zerodha commodity account for trading on MCX. The account can be logged in either on the Kite web platform or Kite mobile app on android and iOS devices.

Zerodha Commodity Trading Pros and Cons

Pros Cons
  1. Lowest brokerage commodity trading at a maximum of Rs. 20 per order.
  2. India’s number one discount broker.
  3. Online commodity trading on Kite mobile app and web.
  4. Get commodity trading margin.
  5. Advanced orders like cover order and after-market order.
  6. Single login credentials for equity and commodity trading accounts.
  1. Commodity trading on BSE and NSE is not allowed.
  2. You must open an equity + commodity + Demat account, only commodity account can’t be opened.

Zerodha Commodity Trading Customer Care

Helpline no.
Zerodha Commodity Helpline number [New A/c opening] 080 4719 2020/ 080 7117 5337
Zerodha commodity customer support number 080 4718 1888/ 080 4718 1999
Zerodha commodity call & trade 080 4718 1888
Request call back from Zerodha

FAQs

No, it is not possible to transfer the funds internally from your equity trading account to your commodity trading account. The reason for that is that Zerodha is registered as two different companies for two different segments.

For equity, the company name is Zerodha Broking Limited, and for commodity, the registered company is Zerodha commodities Private limited.

To transfer the funds from equity to commodity or vice versa, you have to withdraw first to your bank account and then transfer the funds back to your chosen segment.

 

 

Yes, you can close your commodity account without even closing your Demat and Trading account.

Zerodha doesn’t charge you an account maintenance charge for maintaining the commodity and trading account, it only takes the AMC for using the Demat account. So you can disable the commodity segment by using the kill switch(from console), if you want to trade no further.

To close the commodity account online follow the step mentioned below.

  • Download the Account Deactivation/closure form from this link.
  • Fill the form in Microsoft Word or any text editor.
  • Upload the document to the Digio website for digital esigning.
  • Choose the “Sign “ option and select ” Adhaar esign”
  • Enter your VID/Adhaar and you will receive an OTP.
  • After you enter OTP the esigning will be complete.
  • Download the esigned copy and send it to Zerodha via raising a ticket from the support portal.

The account closure will be processed within 5-7 working days.

 

 

Once the commodity segment activation request is placed from the console, it will take the next 48 working hours for the segment to be activated.

You can also send the commodity trading form offline and it will be activated within 48 working hours after the application form reaches the Zerodha head office.

 

 

Yes, you can trade in metals, oil, and Agri commodities on the MCX exchange through Kite-Zerodha. You can trade in all the commodity derivatives (i.e futures and options). You have to separately add funds to your commodity account to trade in it.

Zerodha doesn’t charge you an annual maintenance charge (AMC) for maintaining the commodity account. Trading in NCDEX exchange contracts is not possible in Zerodha, as recently Zerodha returned its NCDEX membership license because of illiquidity in NCDEX contracts, as illiquid scrip increases the risk for the trader as well as broker.

 

 

If you are a new customer and looking to start commodity trading at the cheapest brokerage then you can open a commodity account in Zerodha.

Steps to open Zerodha Commodity Trading Account Online:

  1. Visit Zerodha's official website.
  2. Click on the “Sign up Now” and enter the mobile number, e-mail, and the OTP to sign-in.
  3. Provide PAN number and date of birth.
  4. Pay the account opening fee. Make sure to select the commodity option as well.
  5. Enter aadhaar number, personal information, and bank details.
  6. Complete Zerodha IPV process.
  7. Upload bank proof, PAN card, aadhar card, signature, and income proof.
  8. Complete e-sign with aadhar.
  9. Once details are verified, the equity + commodity + Demat account will be activated.

Note: Zerodha charges Rs. 100 to open an online commodity account while the offline account opening fee is Rs. 200.

 

 

You have to maintain a separate fund balance in your commodity account. The equity fund balance can’t be used for your commodity trading.

You can add the funds using UPI. The UPI fund transfer is completely free and it is not chargeable in Zerodha. The fund needs to be transferred from your registered bank account with Zerodha. To do the same you have to follow the following steps.

  • Visit zerodha.com/funds or Click on the “funds” tab on the Kite web.
  • Choose “ Add funds”.
  • Enter the amount and select the segment ”commodity”.
  • Enter your “UPI id”
  • Select the payment mode ”UPI” and continue.
  • Now you have to accept the payment collect request on your UPI app .

Then the fund will instantly reflect in your commodity account, “payin” section.

 

 

Yes, you can trade in the commodities via KITE. You can trade in all MCX-listed commodities (Metal, Bullion, Agro Commodities, and Energy).

The brokerage charge for commodity options/futures is 0.03% or 20 Rs whichever is lower.

 

 

To trade in commodities, you need to have your commodity account activated in Zerodha. You can activate your commodity segment from the console>Accounts if you have already opened an equity account.

In case the commodity account is already opened, you can start trading by searching the respective commodities in the KITE watchlist.

 

 

You can trade in commodities such as metals, oil, and Agri commodities on the MCX exchange through Kite-Zerodha. You can trade in all the commodity derivatives (i.e futures and options). You have to separately add funds to your commodity account to trade in it.

Zerodha doesn’t charge you an annual maintenance charge (AMC) for maintaining the commodity account. Trading in NCDEX exchange contracts is not possible in Zerodha, as recently Zerodha returned its NCDEX membership license because of illiquidity in NCDEX contracts, as illiquid scrip increases the risk for the trader as well as broker.

 

 

You have to activate the commodity account if not opened at the time of Account opening to start trading in commodity. Zerodha Commodity trading account can be opened online, by placing a segment activation request from the console. Follow the below-mentioned steps to do so.

  • Visit zerodha.com/account/segment-activation
  • Go to “Accounts” and click on “segments”.
  • Under Manage segments, toggle on “Commodity account switch” and then click on “continue”
  • Select the income range in the” Gross income” section, then select the “trading experience”.
  • You can select the “commodity trade classification” and attach the income proof.
  • Enter the “file password”, if the income proof file is password protected. Otherwise, you can keep it blank.
  • Once you click on “continue”, it will redirect you to the esign page.
  • In the esign page click on “proceed to esign”>”sign now”.
  • Enter the Adhaar Number and the OTP.
  • Once you verify the OTP, then the commodity segment will be activated within the next 48 working hours.
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Yes, you can do commodity trading in Zerodha on the kite mobile app. You have to go to the watchlist and search for commodities you want to trade. The MCX contracts are available in derivatives such as futures and options.

 

 

Last Updated on 2024-03-28