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How to do commodity trading in India?

To do commodity trading in India, you need a broker who is members of MCX and/or NCDEX (commodity exchanges). The commodity trading account is separate from Equity and currency trading Account. If your broker offers a commodity trading services, then you need to open a separate commodity trading account other than trading and demat account or request specifically in case of a new account.

In case your broker does not deal in commodity trading services, you need to open an account with the broker who offers commodity services. You can take help from our list of brokers providing commodity trading services in India. Compare their attributes and choose one which suits your requirements.

Most full-service brokers like Sharekhan, Angel Broking, Motilal Oswal, Edelweiss etc offer commodity trading and add on services like research reports, tips & recommendations and relationship managers to facilitate your trading. Brokerage charged by them is a percentage based on lot size. Discount brokers like Alice Blue(₹20), Zerodha(₹20), Upstox(₹20), etc. charge a flat fee whether you buy 1 lot or 10 lots.

Commodity trading was not available with the brokers that are associated with Banks or providing 3-in-1 accounts (ICICI Direct, HDFC Securities, SBI Securities, Axis Direct, Kotak Securities). After changes in SEBI guidelines, Axis Direct (a subsidiary of Axis Bank) has started Commodity trading on MCX in 2018.

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