If you are looking to trade in the commodity market, the first step would be to pick the best commodity broker in India. With so many different brokers to choose from, it’ll surely be difficult for a new trader to select the best. Thus, to make things easier for you, I have listed top 5 of the best commodity brokers in India. I know that there are various criteria which may differ your choice compared to me. But this is my personal list of top 5 which I have listed as per understanding and experience. You are always welcome to share your favorite list of top brokers in India who provide demat trading account for commodity trading.
What is the meaning of commodity market?
Well, if you have little bit of idea about stocks or company shares, then you might have also heard about commodity stocks. As the name suggests, it is the shares or stocks of commodity products like Oil, gold, cotton, wheat, sugar, cattle, pork bellies, lumber, silver and other precious metals. When people trade on the stocks related to these products, it is called commodity trading. E.g. the price of petrol is always fluctuating ups & down and if you want to make money trading on petrol price, then you have to go for a commodity trading account and then continue trading there.
List of Best Commodity Brokers in India where you can open a trading account easily
RKSV too is a popular discount broker. Their brokerage plan is similar to Zerodha and they too charge a flat brokerage of Rs. 20 per trade or 0.01% of the trading amount whichever is lower. So, if you are a regular trader who generally trades in large quantities, you can rest assured that you’ll save a lot of brokerage. However, it is important to note that they do not provide any advisory services. You can easily open a trading account with RKSV by simply uploading the documents online on their official website.
The discount broker is currently one of the most popular brokers in the country. While the broker is popular for its cheap brokerage for equity F&O, it is also one of the best for trading in the commodity market. It charges a flat fee of Rs. 20 per trade or 0.01% of the trade amount whichever is lower. So, no matter if you are buying 1 lot of Silver or 10 lots of Silver, you will not pay more than Rs. 20 per trade.
3. Religare Securities
While Religare Securities is not very popular, it is great for traders who are looking to trade in the commodity market. It doesn’t charge any account opening or software installation charges and offers a number of additional benefits, like free technical support, free tips on a daily basis and quick withdrawal. Its commodity brokerage ranges between 0.01% and 0.03% of the trading amount. They also recently launched their mobile app which according to users is very easy to use and has several handy features.
Sharekhan is a full-service broker which allows traders to trade in the commodity market as well. Sharekhan offers many different types of trading accounts, however, the commodity brokerage is higher than the above-mentioned options. If you go with their Classic Account, the brokerage will be 0.10% of the trading amount. But while their brokerage is higher, they offer a host of other facilities, like online demo, charting, mobile trading, advisory, etc.
1. Angel Broking
Angel Broking is one of the largest and oldest brokers in the country. Being a full-service broker, they offer a host of benefits to the traders, like phone advisory, online trading, mobile trading, and a lot more. Moreover, you can also opt for advisory service where their analyst will call you and tell you about the trades which you can take. Such calls are created by their analysts and several traders agree that they are very beneficial. While their brokerage is at the higher end at 0.30%, you can negotiate it if you are a regular trader.
If you are planning to explore the amazing opportunities offered by the commodity market, the options mentioned above can be your companion in the journey. Commodity trading is little different compare to stock trading. In case you want to know the differences between commodity trading vs Stock trading vs currency trading, then follow this good article shared in moneycontrol.com.
You can also share your experience or any kind of tips & tricks of commodity trading by writing a comment below. This will be very much helpful for our readers. Thanks you for sharing this article in your Facebook & other social media profiles.