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Best Commodity Broker In India

best commodity broker in india
Best Commodity Broker In India

Looking for a best commodity broker in India? Great! You have reached the right place.

Commodity trading brokers have an important role to play in selling and trading tangible goods.

This type of trading is centered around commodities such as agriculture (wheat, cotton, etc.), minerals (petroleum), and precious metals (gold, silver, etc.).

Commodity brokers place commodity trades for their clients.

Previously, commodity trading required a substantial investment in terms of money, time, and expertise, making it primarily the realm of professional traders.

Nowadays, commodities can be traded in a variety of ways. Commodity trading brokers buy and sell these goods in the form of options, futures and other financial derivatives. 

There are some brokerage firms that also take care of commodity trades. If you’re an investor, commodity trading can be a lucrative option to diversify your portfolio. Commodities work wonders during periods of market volatility.

On the flip side, commodities tend to be a bit risky because their supply and demand gets impacted by unpredictabilities like epidemics, pandemics or any environmental disaster

In this guide, we ranked and reviewed the 10+ best broker for commodity trading, along with our top 3 choices, so that you can pick the best one for you.

Recommended
Upstox

Upstox

(Best for Price)

Overall Rating: 4.5/5

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Angel Broking

Angel Broking

(Best for Performance)

Overall Rating: 4/5

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Zerodha

Zerodha

(Best for Overall)

Overall Rating: 4.5/5

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua minim veniam, quis nostrud.

Best Commodity Broker In India

Want to jump straight to my top picks? My favorite's among top 10 commodity trading companies in India are Zerodha and Angel Broking.

What is Commodity Trading?

There is no major difference between commodity trading and equity trading. In both equity and commodity trading, investors can invest their funds and traders can take a price view. It can be short-term and long-term, as per the preferences.

In commodity trading, traders trade on contracts of future commodities. Commodity futures allow you to buy or sell a commodity at a fixed price in the near future.

Here’s a list of top commodity exchanges in India-

  1. National Commodity and Derivatives Exchange Limited (NCDEX)

  2. Multi Commodity Exchange of India Limited (MCX)

  3. National Multi Commodity Exchange of India Ltd (NMCEIL)

  4. ACE Derivatives and Commodity Exchange 

  5. Indian Commodity Exchange Limited (ICSE)

MCX and NCDEX tops the chart, being two of the most popular commodity exchanges amongst traders. Trading in commodities are differentiated into 2 categories, namely-

  1. Commodity Discount Brokers

As the name suggests, this is one of the affordably priced brokerage service providers in commodity trading. The fee per order starts from INR 3 to INR 20.

To get started, you need a mobile device, website and installable trading terminals. The interesting part is that all of these services can be availed of, independent of the size of the trade.

  1. Commodity Full-Service Brokers

Full-service commodity trading starts at 0.03%-0.05% of the transaction value. However, some brokers charge a flat fee based on the trade while others charge fixed brokerage, as decided.

List of best commodity trading platform in india

Below is the list of top 10 commodity brokers in India. Here you go!

Rank

Commodity Brokers

1

Zerodha

2

Angel Broking

3

Sharekhan

4

Upstox

5

ICICI Direct

6

HDFC Securities

7

Motilal Oswal

8

IIFL

9

TradePlus Online

10

Alice Blue

1. Zerodha

Zerodha

Commodity trading in Zerodha is available on the portal. To enable commodity trading, you’ll have to log in to your Zerodha Kite.

Commodity trades can only be carried out if this feature is enabled on Zerodha’s trading platform. 

If you’ve enabled MCX in your trading account, you can use Kite for trading in different commodities provided by the broker.

Enabling MCX commodity segment is a must to start commodity trading. 

Kite is also available as a mobile app and a web application. Discount brokers demand a flat Rs. 20 per order brokerage or 0.03%, whichever is lower on commodity trading.

Let’s get the complete Zerodha Commodity Brokerage Charges below.

Description

Commodity Futures

Commodity Options

Brokerage

Rs. 20 per order brokerage or 0.03%, whichever is lower on commodity trading. 

Rs. 20 per order brokerage or 0.03%, whichever is lower on commodity trading. 

Commodity Transaction Charges (CTT)

0.01% on sell side (Non-Agri)

0.05% on sell side

Transaction Charges

0.0026%

0

SEBI Charges

Agri: INR 1/crore

Non Agri: INR 10 /crore

INR 10 /crore

GST

18% on brokerage and transaction charges

18% on brokerage and transaction charges

Pros
  • Commodity trading at a minimum commission of Rs. 20 per order
  • India’s premium and well-reckoned discount broker
  • Offers online merchandise on Kite mobile app and web
  • Get commodity trading margin.
  • Advanced orders like cover order and after-market order
  • Just one login required to access equity and commodity trading accounts
Cons
  • Does not allow commodity trading on BSE and NSE.
  • Requires you to open an equity + commodity + Demat account, just commodity accounts won’t work.

2. Angel Broking

Angel Broking

Angel Broking is a full-service commodity in India. They currently operate from 900 towns with approx. 8500 sub brokers.

Earlier, they used to charge percentage-based brokerage, however, recently they shifted to a iTrade Plan that amounts to Rs. 20 for every executed order. 

Description

Commodity Futures

Commodity Options

Brokerage

Rs. 20 for every executed order.

Rs. 20 for every executed order.

Commodity Transaction Charges (CTT)

0.01% on sell side (Non-Agri)

0.05% on sell side

Transaction Charges

MCX Rs. 150 per Cr (0.0015%) | NCDEX Rs 300 per Cr (0.003%)

MCX Rs .150 per Cr (0.0015%) | NCDEX Rs 300 per Cr (0.003%)

SEBI Charges

0.0001% (₹10/Crore)

0.0001% (₹10/Crore)

GST

18% on (Brokerage + Transaction Charge + SEBI Fee)

18% on (Brokerage + Transaction Charge + SEBI Fee)

Pros
  • Full-service brokerage companies come with extremely low brokerage rates.
  • 30+ years of experience in the brokerage business
  • Flat fee stock broker charging Rs. 20/order across segments and exchanges
  • Free research and advisory; comprehensive daily, weekly and specialized research reports from experts
  • Does not charge for fund transfer.
  • Free trading software (website, mobile, and trading terminal)
  • Multitude of investment like equity trading, F&O, commodities, PMS, mutual funds, insurances
  • Training available for beginners
Cons
  • They do not offer 3-in-1 accounts.
  • Broker-assisted trades are charged at an extra Rs. 20 per order.

3. Sharekhan

Sharekhan

Apart from leading in commodities, Sharekhan also offers services in segments like equities, currency, and F & O.

Portfolio management is their forte. To upskill their customers, Sharekhan also invests in classroom training and workshops.

Since their brokerage charges are pretty high, traders who trade frequently may have to incur high costs.

They do not charge for opening an account. However, they do have an Annual Maintenance Charge, which you’ll have to pay from the second year onwards. It amounts to Rs. 400.

Description

Commodity Futures

Commodity Options

Brokerage

Minimum Brokerage of Rs. 15/ per scrip settlement delivery (sell)

Minimum Brokerage of Rs. 15/ per scrip settlement delivery (sell)

Commodity Transaction Charges (CTT)

Rs 1000/crore

Rs 5000/crore

Transaction Charges

Rs 390/crore

Rs 2000/crore

SEBI Charges

0.0001% (₹10/Crore)

0.0001% (₹10/Crore)

GST

18% on (Brokerage + Transaction Charge + SEBI Fee)

18% on (Brokerage + Transaction Charge + SEBI Fee)

Pros
  • Mobile platform is intuitive and well-equipped.
  • Single-platform trading in multiple segments and multiple exchanges (NSE-BSE-MCX-NCDEX, Equity cash, F&O, Currency, Commodity)
  • Provides aftermarket order facility (AMO)
  • Free call and trade facility
  • Multiple brokerage schemes to suit varied customers
  • Zero fee for fund transfer
Cons
  • They do not offer 3-in-1 accounts
  • The brokerage charges are a bit higher (% based) compared to flat fees
  • Classic account holders cannot trade commodities.

4. Upstox

Upstox

Upstox is one of the leading commodity broker service companies in India. It allows you to trade via MCX.

The platform allows you to invest in the commodity of your choice. Web or mobile, you can pick anything to start trading on Upstox. However, their app is very intuitive and super clean. 

Upstox Pro is their mobile trading app. Using the app, you can also analyze futures in resources, including (but not limited to!) copper, gold, crude oil, silver,zinc, and natural gas.

You can manage your trade selections on several exchanges at the same time, including BSE, NSE, NFO, NCD, BCD and MCX, from a single online trading platform.

For Futures, you’ll be billed Rs. 20 or 0.05% (whichever is lower) per transaction. For options, you’ll have to pay a flat fee of Rs. 20 for every single order.

Your maximum brokerage cost remains Rs. 20 for every single order, no matter what the size!

Description

Commodity Futures

Commodity Options

Brokerage

Rs. 20 or 0.05% (whichever is lower) per transaction

flat fee of Rs. 20 for every single order

Commodity Transaction Charges (CTT)

0.01% only on sell

0.05% only on sell

Transaction Charges

NSE: 

Exchange turnover charge: 0.0020%

Clearing charge: 0.0002%

Exchange turnover charge: 0.053%

Clearing charge: 0.005%

SEBI Charges

Rs. 5/crore

Rs. 5/crore

GST

18% (on brokerage + transaction & clearing charges)

18% (on brokerage + transaction & clearing charges)

Pros
  • Low brokerage fee of Rs. 20 per trade for Delivery, Intraday and F&O
  • Excellent online trading platform (website and mobile app)
  • Bracket and Cover Orders available
  • Margin against share available
Cons
  • Doesn't offer Brokerage-Free Equity Delivery trading.
  • Charges Rs 20 extra for Call & Trade orders.
  • Charges Rs 20 for the auto square of Intraday orders
  • No monthly unlimited trading plans
  • API to alog traders not available
  • No GTC orders
  • NoMargin funding 

5. ICICI Direct

ICICI Direct

A trading extension of ICICI Securities, ICICI Direct forms part of the ICICI Group. ICICI Securities offers online trading platform services to 20 lakh customers and more only via ICICI Direct.

An ICICI Direct customer has to activate the Commodity Trading Segment. Once registered, you can start trading by logging on to ICICIDirect.com or the mobile trading app.

One of the most competent trading platforms, ICICI Direct allows trading in various segments listed by NSE and BSE.

ICICI Direct offers a simple way to trade in the commodity derivatives segment with a stunning brokerage structure of Rs. 20 per lot. 

ICICI Direct meets three crucial needs of investors - protection, investments and borrowings.

They also deliver commodity learning programs and FAQs that can further aid traders in becoming successful commodity traders.

Description

Commodity Futures

Commodity Options

Brokerage

Rs. 20 per lot

Rs. 20 per lot

Commodity Transaction Charges (CTT)

0.01% of turnover (on sell side).

0.01% on turnover

Transaction Charges

0.0026% on turnover for MCX Group A Commodities 

0.0026% on turnover for MCX Group A Commodities 

SEBI Charges

0.0001% (Rs. 10 per crore) on turnover for Non-Agri commodities and 0.00001% (Rs. 1 per crore) on turnover for Agri commodities

0.0001% (Rs. 10 per crore) on turnover for Non Agri commodities and 0.00001% (Rs. 1 per crore) on turnover for Agri commodities.

GST

18% of the total value of brokerage

18% of the total value of brokerage

Pros
  • 3-in-1 account for your banking, broking and demat needs
  • Trading in both BSE and NSE
Cons
  • Costs are high and are not negotiable
  • Charges Rs. 25 per call for call and trade after the first 20 free calls.

6. HDFC Securities

HDFC Securities

HDFC Securities provides commodity derivatives trading on MCX. A minimum brokerage Rs 20 is to be paid per order on carry forward or square off trades.

If you’re an existing HSL customer, you can avail of the Commodity Derivatives facility with a simple online registration.

Once the commodity rights are given, you can use the same login credentials and access commodities and place their trades.

Description

Commodity Futures

Commodity Options

Brokerage

Rs. 23 per contract

Rs. 20 per contract

Commodity Transaction Charges (CTT)

0.00110%

0.040% (on premium)

Transaction Charges

.00190%

0.050% (on premium)

SEBI Charges

0.0001% (Rs. 10/Crore)

0.0001% (Rs. 10/Crore)

GST

18% on (Brokerage + Transaction Charge + SEBI Fee)

18% on (Brokerage + Transaction Charge + SEBI Fee)

Pros
  • Integrates 3-in-1 account for convenient trading.
  • Allows investment online in IPOs, Mutual Funds, GOI Bonds, Insurance and Postal Savings Schemes from a single platform.
  • Trading in both BSE and NSE
  • Excellent for beginners
Cons
  • Very high rates
  • No commodity trading - you cannot trade at MCX or NCDEX through HDFC.
  • Participant (DP) and Bank Account need to be opened with HDFC Bank as the banker.
  • HDFC minimum brokerage charge - Rs. 23

7. Motilal Oswal

Motilal Oswal

Motilal Oswal Securities Ltd. (MOSL) is an India-based, diversified investment firm.

Offers trading services in Equity, Commodity, Currency and Derivatives and, at the same time, offers products like Mutual Funds, IPOs, Gold, Insurance and Fixed Income.

MOSL is widely acclaimed for its Portfolio Management Service (PMS).

One of the biggest names in stock-broking firms today, MOSL is known for its best-in-class 

research in stock recommendations. 

MOSL is registered with NCDEX and MCX and allows you to trade in different commodities.

A brokerage fee of 0.05% per trade in commodity futures and Rs. 100 per lot in commodity options has to be paid to start trading.

Segment

Default Brokerage Plan

Value Pack Brokerage Plan

Margin  Scheme Brokerage Plan

Equity Delivery

0.50%

from 0.10% to 0.40%

from 0.15% to 0.50%

Intraday Cash or Future – Equity and Commodity

0.05% (both side)

from 0.01% to 0.04% (both side)

from 0.015% to 0.05% (both side)

Options – Equity

Rs. 100 per lot (both side)

from Rs. 20 to Rs. 50 per lot (both side)

from Rs. 25 to Rs. 100 per lot (both side)

Currency F&O

Rs. 20 per lot (both side)

from Rs. 10 to Rs. 22 per lot (both side)

Rs. 20 per lot (both side)

Pros
  • Several years of hands-on experience in investment, diversification, trading and portfolio management 
  • Provides an array of investment choices - right from Equity to Derivatives, IPO, Mutual Funds, Insurance and Fixed Deposit.
  • Value Pack Brokerage Schemes offer low brokerage options.
  • Operational ease
  • Free research advisory services
  • Free trading software
Cons
  • No 3-in-1 account
  • Brokerage charges are pretty high.
  • No option to update or cancel value pack plans once selected.

8. IIFL

IIFL

IIFL is known for its customized services.

Being one of the top full-service commodity brokers, IIFL leads in research-oriented advisory services for an assortment of financial products like Stocks, Insurance, Commodities, IPO and Bonds FDs, Derivatives, Loans, etc. 

Currently, they charge brokerage fees at a flat rate. It is Rs. 20 per executed order.

Description

Commodity Futures

Commodity Options

Brokerage

Rs 20 per order

Rs 20 per order

Commodity Transaction Charges (CTT)

Rs 210 per Cr (0.0021%)

Rs 5100 per Cr (0.051%) (on premium)

Transaction Charges

Rs 210 per Cr (0.0021%)

Group A - Rs 280 per Cr (0.0028%)

SEBI Charges

0.0001% (Rs 10/Crore)

0.0001% (Rs 10/Crore)

GST

18% on (Brokerage + Transaction Charge + SEBI Fee)

18% on (Brokerage + Transaction Charge + SEBI Fee)

Pros
  • Full-service firm operating across India
  • Gives the option of brokerage-free equity delivery trading.
  • Flat Rs 20 per trade brokerage for Intraday and F & O at BSE, NSE, MCX, and NCDEX
  • Free equity and MF research and recommendation provided.
Cons
  • No 3-in-1 account
  • No Direct Mutual Funds
  • Call and trade priced at Rs 50 per call

9. TradePlus Online

TradePlus Online

If you’re looking for a commodity brokerage firm that charges the minimum, TradePlus Online is your choice! So, there are 2 options:

  1. Exclusive pack for unlimited trading costs Rs. 99 per month

  2. Flat brokerage plan for Rs 9 per order

Compared to other giants in the market, TradePlus plans are extremely affordable. TradePlus is a subsidiary of Navia Markets that has been in the business for more than 3 decades now.

Description

Commodity Futures

Commodity Options

Brokerage

Plan 1- Exclusive pack for unlimited trading costs Rs. 99 per month

Plan 2- Flat brokerage plan for Rs. 9 per order

Plan 1- Exclusive pack for unlimited trading costs Rs. 99 per month

Plan 2- Flat brokerage plan for Rs. 9 per order

Commodity Transaction Charges (CTT)

0.01%

0.05% on sell trade

Transaction Charges

Exchange Charge- 0.0026%

Clearance Charge- 0.0014%

Exchange Charge- 0

Clearing Charge- 0.05%

SEBI Charges

0.001% on turnover 

0.001% on turnover 

GST

18% of brokerage and turnover charges 

18% of brokerage and turnover charges 

Pros
  • Unlimited monthly plan available for regular traders
  • Free equity delivery
  • Zero brokerage charges for trading in (cash & carry) segment
  • Low Demat fee - Rs 90 per month
  • Analysis tools for intraday trading
Cons
  • Lower margin
  • There’s a premium to be paid for software.
  • Call & trade charges at Rs 1000 per month.

10. Alice Blue

Alice Blue

Based out of Bangalore, this trading firm has been here for quite some time now.

The platform allows trading through BSE, NSE, NCDEX, and MCX for free. Alice Blue is a discount stock-broking firm with high-end technology-driven trading terminals.

With a presence of more than 1000 sub-brokers spread all across India, Alice Blue is doing extremely well in providing low-cost brokerage services.

They provide equity delivery trades for free under the Alice Blue Freedom 20, a flat fee brokerage plan. 

They also have an Advisorymandi app for research and advisory services.

Exchange

Segment

Freedom Plans (F20)

Trade Pro Plan

NSE, BSE

EQ Intraday

Rs 20 per order or 0.01% whichever is lower

0.01%

EQ Delivery

0

0.10%

FUT

Rs 20 per order or 0.01% whichever is lower

0.01%

OPTION

Rs 20 per order

Rs 20 per lot

MCX

FUT

Rs 20 per order or 0.01% whichever is lower

0.01%

OPTION

Rs 20 per order

Rs 20 per lot

NSE, BSE

CURRENCY FUT 

Rs 20 per order or 0.01% whichever is lower

Rs 10 per lot

CURRENCY OPT

Rs 10 PER ORDER

Rs 20 per lot

Pros
  • Low-cost brokerage plans
  • Unique cutting-edge technology ANT
  • 100% paperless
  • Tools that are useful for a better trading experience
  • Beginners can get to understand the fundamentals of the stock market.
Cons
  • It’s not full-service
  • Broker-assisted calls charge at premium rates.

Pros and Cons of Commodity Trading

Pros-

  1. You get to trade during your working hours. Timings - 10 AM to 11:30 PM

  2. Maximizes portfolio diversification.

  3. Gets you exposure to global stock markets.

Cons-

  1. It’s prone to uncertainties. Expect higher volatility.

  2. No income gains, just like equities

  3. Extremely unpredictable

How to Select the best broker for futures trading in india

Here are some non-negotiables when it comes to selecting the best broker for commodity trading in India. Please be mindful of these steps so that you don’t end up in a mess. 

  • Always look for credibility and reliability when selecting one!
  • Go to the website and look for the registration number. It’s a strong green signal.
  • Look for client associations. Credibility in clients= Credibility in business
  • Brokerage fees must not exceed Rs. 20.
  • Check reviews before signing up with just any random platform.
  • The platform should also have improved and accessible chat/email or call support.

Conclusion

Commodity trading can be extremely fruitful, if managed well. Since the trading hours are quite feasible, you can even choose to trade after your work hours.

The only thing you should be extremely cautious of is the platform - choose a reliable platform only. We hope the list of commodity brokers shared above helps you decide on the best commodity broker in India.

frequently asked question

1. Is Zerodha good for commodities?

Yes, Zerodha is one of the giants when it comes to commodity brokerage services. It offers commodity trading at a minimum commission of Rs. 20 per order.

Besides, you also get commodity trading margin and advanced orders like cover order and after-market order. You can completely trust Zerodha for commodity trading.


2. Which broker is best for crude oil trading?

Here’s a list of best oil trading brokers: 

  • XTB
  • FP Markets
  • FXCM
  • IC Markets
  • VantageFX
  • Plus500
  • MultiBank
  • FXTM
  • eToro


3. How can I buy commodities in ICICI Direct?

An ICICI Direct customer has to activate the Commodity Trading Segment. Once registered, you can start trading by logging on to ICICIDirect.com or the mobile trading app.

One of the most competent trading platforms, ICICI Direct allows trading in various segments listed by NSE and BSE.  ICICI Direct offers a simple way to trade in the commodity derivatives segment with a stunning brokerage structure of Rs. 20 per lot.


4. How can I buy gold in ICICI Direct?

In order to purchase gold through ICICI Direct, you will need a Demat account that is linked to your ICICI Direct account. You can visit either ICICI Bank or call ICICI customer care to obtain a Demat account.

Here are the ICICI Direct codes for a variety of gold investment choices. All of these also need to be purchased, similar to stock purchases in ICICI (Equity --> Cash Buy)

  • GOLDEX - BENCHMARK GOLD EXCH TRADED SCH
  • AXIETF - AXIS Gold ETF
  • BSLGOL - BIRLA SUN LIFE GOLD ETF-GROWTH
  • HDFGOL - HDFC GOLD EXCHANGE TRADED FUND
  • ICIETF - ICICI Prudential Gold ETF
  • KOTGOL - KOTAK GOLD ETF
  • QUGOLD - QUANTUM GOLD FUND -ETF
  • RELETF - RELIGARE GOLD - ETF
  • RELGOL - RELIANCE GOLD ETF
  • SBGETS - SBI GOLD EXCHANGE TRADED SCHEME
  • UTGOLD - UTI GOLD EXCHANGE TRADED FUND


5. How do commodity traders make money in India?

The 5 essential steps to follow for commodity trading in India are:

  • Have a clear understanding of the major exchanges through which commodities are traded.
  • Finalizing an efficient broker
  • Opening the commodity trading account
  • Making an initial deposit
  • Creating a trading plan

Here are my best picks among top 10 commodity brokers in India:

Also Read: Check out my reviews of the best image editing software, the top choices for video editing software, and my full guide to start a blog for beginners.

Ankur Aggarwal

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About the Author

Hi all, I am Ankur Aggarwal – Digital Marketer, Entrepreneur, Traveller, Blogger, and Foodie. Have been blogging since 2010. In 2016 I scored 99.2 percentile in XAT Exam for MBA, left that to pursue my Online business dreams.
The purpose of ankuraggarwal.in is to pass on 100% accurate, genuine and FREE information on Personal Finance, Entrepreneurship, Investing, Career, and Learning Digital Marketing Online. Know more about me here: About Ankur Aggarwal

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