What Is a Commodity Market?
Starting with what the commodity market is, how it works and the basics of the market. So a commodity market is a trading area for the buying, selling, and trading of raw materials or primary products.
They are usually split into the broader category of two, hard and soft. Natural resources such as gold, rubber, and oil, which are mined, come in hard commodities. On the other hand, soft commodities are agricultural products or livestock—such as corn, wheat, coffee, sugar, soybeans, and pork. Let’s discuss about the best commodity broker in India.
Points to be Noted
● The commodity market is the market that involves the buying, selling, or trading of a raw product, like oil, gold, or coffee.
● These are bifurcated into two parts: soft and hard commodities. Hard commodities usually entertain the natural resources, and on the other hand soft commodities, include livestock or agricultural goods.
● The spot commodity market includes the immediate deliveries; on the other hand, the derivative market involves delivery in the future.
● The one who is investing can gain exposure to the commodities by investing in the company that has exposure to the investment directly via futures contracts.
Talking about the full-service commodity broker in India offers commodity trading, which includes research and advisory services. The customer can easily be trading in contracts at MCX and NCDEX exchanges.
The trading in commodities are differentiated into two categories:
1. Commodity Discount Brokers
2. Commodity Full-service Brokers
Commodity Discount Brokers
The commodity discount broker is the Ultra-Low cost brokerage service provider in commodity trading. You can access the service through the mobile, website and installable trading terminals. The fees of the commodity broker range from rupees 9 to rupees 20 per executed order. This is irrespective of the size of the trade.
Commodity Full-Service Broker
The fee of the full-service commodity broker fees usually ranges from 0.03%-00.5% of the transaction value. Some of the brokers tend to charge a flat fee per trade. Some of the brokers charge the fixed brokerage that is decided. Below is the list of the best commodity brokers in India offering full-service to customers.
Best Broker for Commodity Trading in India
Here is the list of the top 10 Best Commodity broker in India. These brokers have given out the best services for commodity trading.
|1||ICICIdirect||Rs 20 per order|
|2||HDFC Securities||0.02% for Intraday / 0.025% for positional|
|3||Kotak Securities||Delivery charges Rs 20 per trade | Intradaycharges Free|
|5||Motilal Oswal||0.05% (both side)|
|7||IIFL Securities||Rs 20 per order|
ICICI Direct is one of the best commodity broker in the Indian Market. The company is the sub-company of the ICICI group. They offer their services online. The service offered includes online trading and investment services to over 50 lakhs customers. They deal in different sectors like equity, commodity, and currency trading at the three major exchanges BSE, NSE, and MCX. The other services offered by the company are Mutual Fund & IPO, Fixed deposits, Bond, NCD, wealth products, Home Loans, Loans against Securities, etc. this makes the platform the best Online Commodity Trading platform.
ICICIdirect has its famous service called the 3-in-1 Account, which includes ICICI Bank Account, ICICI Trading Account, and ICICI Demat Account. It gives a seamless trading experience to its client as one Account can be easily used for two other purposes. The I-Secure Plan, ICICIdirect Prime Plan, Lifetime Prepaid Brokerage Plan, and Neo Plan are among the brokerage plans offered by the business. You can read our article about the 3 in 1 icici demat account.
The plans mentioned above are the flat rate brokerage plan. They offer free equity future trading. The brokerage charges for the investment goes as flat Rs 20 per executed order brokerage for Equity Intra-day and Options trading and 0.55% brokerage for equity delivery. The plan has additional features like the 30-minute payout when selling the share, margin funds at the low-interest rate and margin funds.
HDFC securities is another well-known broking firm in India. It is a subsidiary of the HDFC bank. The company provides both online trading and trading on the phone as a platform. Also, they provide the 3 in 1 account for their users. This account makes trading, banking and the Demat account easier to access. This feature helps in the transferring of the fund seamlessly.
The company also provides services in the sectors like Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE. One can also easily Trade on Futures & Options on the NSE and Online IPO Investment.
Another Best Online Commodity Trading Platform is Kotak Securities, which is a subsidiary of Kotak Mahindra Bank. The company was founded in 1994. There are 1209 branches, franchise and satellite offices that have more than 11.95 lakh customers. Also, the company is a corporate member with the two main stock exchange firms Bombay Stock Exchange and the National Stock Exchange. In addition, the organization has been the Depository participant in the National Securities Depository Limited (NSDL) and Central Depository Services Limited depository systems (CDSL).
They offer three accounts that help the investors to open the Demat Account, bank account and trading Account together with Kotak Mahindra Bank Limited. One can easily save time by just opening one single Account with a single application form. Also, the benefit of the Account is that the client doesn’t have to transfer the money to a trading account via the bank account. It happens automatically. It is much easier to manage the Account, and also once the Account is opened and updated, one can trade in Equity, IPO, Mutual Fund, ETF, Tax-free bonds, Currency Derivatives, Gold ETF etc.
The company started in 1987, and the company introduced as the Motilal Oswal Securities Ltd. (MOSL) is a Mumbai. It is an Indian based diversified financial service providing firm. They offer their services in Equity, Commodity, Currency and Derivatives. The other segments covered by the company are Mutual Funds, IPOs, Gold, Insurance and Fixed Income products. They have been well known for the MOAMC discretionary Portfolio Management Service (PMS).
The Portfolio Management Services has performed well and has a strong track, and has consistency. It has set a benchmark across the market cycle since the beginning of 2003.
They have a diversified client base, which means the client includes the investors and retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions, and corporate clients.
The track record of March 2018 indicates that the company network has been spread over 500+ cities and towns that include the 2200+ Business Locations operated by the company and its Business Partners.
Also, the number for the registration has been over 10,00,000, which comes with over Rs 69,500 Crores in depository assets.
Also, a strong base is created due to the company’s research tactic. The company invests almost 10% of its revenue in equity research. They have separate teams that focus on each large-cap, mid-cap and technical research.
The company has completed more than 30,000 research reports on over 260 companies spread across 21 sectors. If we judge the company on the fundamental, technical, derivative research basis, they have received wide coverage in the media. India’s Best Market Analyst Award also facilitates them for the IT & FMCG sector by Zee Business. This makes the company on the list of the Best commodity broker in India.
Another leading stockbroking firm that deals in the commodity market. They are one of the largest full-time service stock brokers in India. IIFL Securities is led by a powerful parent company named IIFL India. They are the leading financial service provider offering a wide range of services.
The company is well known for its quality of advice, personalized services, and technology usage. The company also offers online trading and research-based advisory services, which have an entire range of the
IIFL Securities provides online trading and research-based advising services for various financial instruments, including stocks, derivatives, commodities, insurance, FDs, loans, initial public offerings, and bonds.
IIFL also offers flat rate brokerage plans. The plan of the discount brokerage offers brokerage-free equity delivery trading. But the other section does cm with a charge of flat Rs 20 per executed order.
The company also offers NRI trading services for investment, and they have their presence in the countries like Colombo, Dubai, New York, Mauritius, London, Singapore, and Hong Kong.
SMC Global was established in the year 1994 known as SMC Global Limited. They are one of India’s leading financial service provider companies, which have many other plans like brokerage, investment banking, and wealth management.
The company has a network of 50+ branches and 2,400 registered sub-brokers and authorized persons with a PAN-India presence. They have the pan recognition and also hold the international recognition. They have their offices situated in Dubai.
The company comes with the SMC’s trading portal, which acts as the one-stop financial investment portal and offers online trading in Equities, Derivatives, Currency, Commodities, IPOs, Mutual Funds and Bonds, etc.
The company also trades in the leading segment the NSE, BSE, MCX, NCDEX and MCX-SX. Hence these services and features make it to the list of Best Online Commodity Trading Platform.
This is another Best Brokers for Commodity Trading in India. The company was started in 1986 named Nirmal Band Securities Pvt. Ltd. The company also offers various financial services and products. They are also among the list of best full-time service brokers.
They offer their vivid services in trading services in equities, derivatives, commodities and currency. They have a client base targeting retail clients through multiple channels, including online trading in the BSE and the NSE. They also provide other financial services such as mutual funds, IPOs, fixed deposits & bonds, dedicated desks for NRIs and institutional clients. The other services provided include insurance broking(both life & general), clearing services, margin financing, investment banking, portfolio management, wealth advisory & research.
The company is the leading member of India’s premier exchange which is named the Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE), Multi Commodity Exchange of India Limited (MCX). The list doesn’t end here; they are associated with National Commodity & Derivatives Exchange Limited (NCDEX), National Multi Commodity Exchange of India Limited (NMCE) and MCX Stock Exchange Limited.
Also, they have been the depository participants (DP) of NSDL and CDSL. The company is a full-time broking firm that offers market insight too. They have a research team that identifies and recommends investment opportunities to the customers.
Also, the company has a strong network of regional officers and branches across India. They have a physical presence in over 16 states of India.
The company started in 1986 which came to be known as Religare Securities Ltd (RSL). The company is the subsidiary of Religare Enterprises Limited, New Delhi, based on a diversified financial group.
Talking about the company, it offers retail broking, depository services, and other related investment services to customers based in India. They have their physical presence from over 500 cities from their branches or the sub-brokers. They are one of the largest brick and mortar stockbrokers who provide personalized services to over 10 lakh customers.
The services provided by the company include trading in equity, equity derivatives, currency derivatives, commodity, Demat Account and its related services, Mutual Funds, NCD, IPO etc.
They are active members of the leading exchanges like BSE, NSE, MCX and NCDEX exchanges. Also, they offer the Demat account service through NSDL and CDSL. The one interested in trading with the company can easily do it by using the website and mobile trading application. This has been created for the customer who wants to do it by themselves. It is one of the Best Online Commodity Trading platforms.
Axis bank has been widely known to their customers, and Axis Direct is the child company to them which deal in the financial state. The company was started in the year 2005 named Axis Securities Ltd. talking about the Axis Sec. It is a full-service broker that offers clients the distribution of financial products and stockbroking services through the AxisDirect brand in India. They are included in the list of 10 stock brokers in India. The active clients of the company are more than 4-5 lakhs.
The company offers their services in the investment in Equities, Mutual Fund, SIP, IPO, Derivatives, Bond, NCD, ETF, and Company Fixed Deposits.
Also, the other services which the firm offers are Home Loans, Auto Loans, Personal Loans, Loan against Property, Loan against Shares and Loans for SME, Credit and Prepaid Cards.
Axis Direct is one destination that offers the 3-in-1 Account, an integrated Trading, Demat and Bank account. The Account helps in seamless trading services, which is the transaction of money and shares between the three accounts. This helps in simplifying the trading experience for beginners and casual traders.
Last but not least, another Online Commodity Trading platform is Sharekhan. In February, the company was started in the year 2000 and bagged as the 3rd largest stockbroker after ICICI and HDFC Securities. Currently, the company has been providing the services of brokerage through its online trading website Sharekhan.com. The current office placement or the physical placement has been in 1800 offices that includes the branches & franchises in over 550 cities across India. The company has their international presence in countries like UAE and Oman.
The services offered by the company includes all kinds of clients, from individual investors and traders, corporate, institutional and NRI’s. The current customer count is more than 17 lakhs. One can easily trade in the equity cash and derivatives segments on BSE and NSE, commodities trading facilities on MCX and NCDEX. They also offer other services like depository services (Demat Account) and the option to invest in mutual funds and IPOs.