Indianmoney Facebook Indianmoney twitter Indianmoney LinkedIn Indianmoney Google Plus Indianmoney Youtube Indianmoney Instagram Indianmoney Medium

" Buy any commodity from the
comfort of home. "

Commodity Trading Account

What is a commodity exchange?

Commodities may be classified into agri-commodities such as spices, soyabean, corn, cocoa and so on. Bullion and other metals may also be traded. Crude oil, natural gas, furnace oil as well as vegetable oils are also traded on commodity exchanges.

Commodity exchanges in India, are basically electronic trading and settlement systems, with a nationwide presence. A number of brokers are associated with these commodity exchanges who offer online trading in commodities. Electronic trading enables even retail investors to participate in the markets by purchasing small quantities of precious metals and other commodities and holding them in electronic form.

Why invest in Commodity Account
Easy Transactions

Easy Transactions

You can buy and sell commodities very fast. All transactions are electronic. There is no need of physical buying and selling of commodities.



Traditionally the prices of commodities move in a direction opposite to equity. Commodities are a good alternate investment.

High Liquidity

High Liquidity

You can easily buy and sell commodities unlike real estate. There is always a buyer and a seller for the commodity.

Margin Finance

Margin Finance

Invest only a fraction of the cost of the commodity and take home huge profits, through margin financing.

Commodity Exchanges in India

The forward market commission (FMC) functions as a regulatory authority in the commodity market. The National Commodity and Derivative Exchange (NCDEX), Multi-Commodity Exchange (MCX) and National Multi Commodity Exchange (NMCE) are the commodity exchanges present in India.

How to open a commodity trading account in India?

In order to open a commodity account you need to submit an address and an identification proof, such as a copy of the voter's card or the passport, a bank account statement, copy of the PAN card which form a part of the know your customer (KYC) norms. This is similar to the opening of a demat account in the equity market.

A trading account will have to be opened with National Spot Exchange Limited (NSEL) and a demat account with a depository such as National securities depository limited.

A minimum amount of INR 5000 is sufficient to trade in most commodities. The brokerage charges are in the range of 0.1-0.3% of the contract value. Transaction charges are in the range of INR 5-10 per Lakh per contract. The brokerage varies based on the type of commodity.

Related Articles

18 November 2014, Tuesday

Risk Tolerance

Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a long period. Before choosing an investment, you must make sure that you understand the investment, ...

18 November 2014, Tuesday

Risks Involved in Investments

Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase over last year's prices. Inflation is a simple concept that punishes the people who ignore it. Even...

17 November 2014, Monday

Commodity Trading

The terms “commodities” and “futures” are often used to depict commodity trading or futures trading. It is similar to the way “stocks” and “equities” are used when investors talk about the stock market. Commodities are the actual physical goods like ...

Most Read Articles

18 July 2012, Wednesday

How to Make Claim on a Life Insurance Policy?

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways: On a Cashless basis and A Reimbursement Claim On a Cashless basis: For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party...

14 March 2014, Friday

ELSS - Utilizing the power of compounding

As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an ELSS Fund. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in period of three years and...

07 January 2014, Tuesday

Why one must never neglect estate planning

One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger yea...

Get It now!

How about our new look!

Mm.. Ok