10 Best Commodity Broker in India- Find Best For Trading Needs
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Commodity Trading is considered one of the best trading methods to get high profits but is also the riskiest form of trade as here one makes profits only at the loss of others. So, choosing a perfect commodity broker according to your needs is very important. So, in this blog, we will talk about the top 10 best commodity brokers in India.
As we have BSE and NSE stock exchanges in the equity market, there are MCX (Multi Commodity Exchange), NCDEX, etc. commodity exchange in the commodity market.
So before moving to the top commodity brokers in India, first let’s discuss some basic commodity trading concepts.
In Commodity trading, Trader can trade in a group of assets or goods that are used in or everyday life like metals (silver, gold, platinum, and copper), Energy (crude oil, natural gas, etc.), agriculture (wheat, rice, soybean, etc.) and Livestock & Meat (Eggs, pork, etc.)
There are two ways by which you can invest in the Commodity market – Futures and Options.
The seller will be in a loss, and if the price decreases, the seller will get a profit, and the buyer will make a loss.
After discussing some basic commodity trading concepts, let’s discuss the top high margin broker for India’s commodity trading.
Founded by Sidhavelayutham Alice Blue provide the best class broking services at minimum costs and one of the most recommended Commodity Broker in India today.
Alice Blue charges Rs 20/order or 0.01% of trade amount, which is lower for Commodity Futures Trading & Rs 20/order for Commodity Options Trading in their “Freedom 20” Plan. The company also has another plan, “Trades Pro,” in which they charge 0.01% of trade value for Futures trading and Rs 20/lot for Options trading.
They provide margins of about 10X on Commodity Options trading and about 20X margins on Commodity Futures trading. You can open a trading account in Alice Blue for Rs 500 for trading in commodities.
Some of the reasons that you can consider while going for Alice Blue as a Commodity Broker are:
- They provide very high margins and charges low brokerage.
- The trading platform ANT (Analyse and Trade) that they provide compared to the brokerage they charge is excellent.
- They have proper offline support with more than 100 franchise offices in India.
What Expert Are Saying:
Alice Blue is a good option for you if you want a commodity stockbroker that provides a high margin and fair trading platform.
Angel Broking is one of the first names that will come into a trader’s mind while recommending someone for a Commodity Broker. Being started in 1987 as a full-time broker, they are one of India’s oldest broking firms. They have recently become public by listing them on the BSE and NSE stock exchange.
Angel Broking charges Rs 20/order for Commodity Future and Options Trading. They offer up to 3X margin on Commodity Futures and Options Trading. You can open a trading account for free with angel broking to trade in commodities.
Some of the reasons that you can consider while going for Angel Broking for Commodity Trading:
- They provide the best offline support because of their massive network of more than 8500 outlets and franchises across India.
- Angel Broking provides researched reports and advice from Experts that can be highly beneficial for beginners.
- Being a stockbroker for a very long time, they are highly trusted.
What Expert Are Saying:
Though they do not provide very high margins, you can consider it if you want excellent support, an advanced trading platform and pieces of advice and tips on trading from their experts.
Upstox is the second-best broker in India next to Zerodha by the total number of customer base. It is founded by Ravi Kumar and Shrini Viswanath and is backed by Tiger Global and Ratan Tata.
They have two plans – “Upstox Basic Plan” and “Upstox Priority Pack.”
In Upstox Basic plan, they charge a brokerage fee of Rs 20/order or 0.05% of trade value, which is lower for Commodity Futures trading and Rs 20/order for Commodity Options trading. In this plan, they provide up to 4X margin on Futures & Options trading.
In the second plan, “Upstox Priority Pack,” they charge a brokerage fee of Rs 30/order or 0.05% of trade value, whichever is lower on Futures & Options trading. You can get up to 6X margin in this plan on Futures & Options trading in this plan. Here, you also get more advanced charts, indicators, and other functions, which is quite helpful in F&O commodity trading and is not available in the basic plan.
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You can open a trading account for Rs 249 with Upstox.
Some of the reasons for which you can consider Upstox for commodity trading are:
- There are significantly fewer limitations for taking margins from Upstox.
- Their trading platform is very good with all the advanced features that an advanced trader needs.
- Upstox provides prepaid brokerage plans in which you get more brokerage amounts that you have to pay. This is quite useful for traders that make a large number of trades.
- They also offer the facility to invest in mutual funds through a Upstox account.
- They also have an option where you can get margin against shares.
What Expert Are Saying:
Upstox can be considered a good option for those who want an advanced trading platform with good charting and fairly good commodity margins and do not need any trading tips and advice.
Zerodha is the top broker in India by the client base. It was founded in 2010 in Bengaluru by Nitin and Nikhil Kamath. They charge Rs 20/order or 0.03% of trade value, whichever is lower as brokerage fee for commodities trading.
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Zerodha provides up to a 2-3X margin on commodity trading. You can open a separate commodity account for Rs. 200 with Zerodha. Zerodha doesn’t offer any tips or advice.
Some of the reasons that you can consider for choosing Zerodha as your commodity stockbroker are:
- Zerodha has the best trading platform in the industry, which is quite a user friendly and quite useful for beginners.
- Along with the trading platform, they provide other tools as well as Varsity, Console, sentinel.
What Expert Are Saying:
By the way, Zerodha is not usually recommended for commodity trading as margins rules are not trader friendly. They are on our list because of their user interface, which is very helpful for beginners and overall they one of the topmost recommended stockbrokers.
Astha Trade is one of the top commodity stockbroker founded in 2005 in Madhya Pradesh. They are considered mostly for their low brokerage and high margins.
They charge Rs 20/order or 0.01% of the trade value, whichever is lower as the brokerage for commodities future trading. Astha Trade provides up to 66x margin on Commodities Futures trading and up to 20X margin on commodities Options trading.
Though they provide very high margins and charges low brokerage, their trading platform is not good.
Some of the reasons that you can consider while choosing Astha Trade for Commodity trading is:
- They charge a low brokerage fee.
- Astha Trade provide the highest margins in the industry as compared to other commodity stock brokers.
What Expert Are Saying:
Astha Trade is the best option for traders who only need a high margin and don’t consider other things. Their brokerage is similar to the other brokers, but their trading platform is not up to the mark.
Founded in 2000 by Shripal Morakhia, Sharekhan used to be the topmost broker in the full-service stockbroking segment, but it fade up its popularity just after discount brokers come into play. But, Service & Trading Platform (Trade Tiger) that Sharekhan offer is remarkable & also very popular among commodity broker.
However, it has now started with the discount broking. Sharekhan charges 0.1% of the trade value as the brokerage for commodity trading and provides up to 2X margin on commodity futures trading. You can open a trading account free of cost with Sharekhan to trade in the commodity segment.
They have an excellent offline network with more than 1800 offices and franchises across India. They also provide their services internationally in Oman and UAE & other countries.
Some of the reasons that you can consider while looking for Sharekhan as your commodity broker:
- Sharekhan provide good offline support because of their sizeable offline presence in India.
- Their trading “Sharekhan TradeTiger” and “SharekhanMobile” are excellent.
- They have experts that provide trading tips to investors.
- For futures and options trading, they allow their customers to submit FD (Fixed Deposit) as collateral.
- Sharekhan provides a free Call and Trade facility, which is generally paid with other brokers.
What Expert Are Saying:
You can consider this Sharekhan for your commodity trading if you need good offline support & advanced online trading platforms with tips and Advisory services from market experts.
Founded by Nirmal Jain and Rajamaini Venkataraman in 1995, IIFL has its headquarters in Mumbai. General Atlantic and CDC group has invested in IIFL. They are also listed on NSE and BSE stock exchange. Like Sharekhan, they were earlier used to be in the full broking segment, and they have now ventured into the discount broking segment.
They have two brokerage plans – IIFL Flat Brokerage Plan (FBP) and IIFL Variable brokerage plan (VBP).
In Flat Brokerage Plan, they charge 0.05% of the trade value as brokerage charge for Futures trading and 1% of trade value or Rs 100/lot whichever is higher as brokerage fee for Options trading.
In Variable Brokerage Plan, they charge variable brokerage based on the volume of the trades that you did in the preceding 20 days before the day you are making a trade. For Futures trading, the brokerage fee can vary between 0.02% and 0.05% of trade value. Options trading charges brokerage fees between 1% to 2.5% of trade value or Rs 40-100/lot, whichever is higher.
IIFL provides up to a 3X margin on commodities trading. You can open a trading account for Rs 750 with IIFL for commodity trading which is quite high but sometimes they also offer a free account opening.
Some of the reasons that you can consider while selecting IIFL as your commodity broker are:
- IIFL has good offline support.
- They are very old stockbrokers and have experienced professionals and experts who provide tips and support to their customers.
- The company has an advanced trading platform by the name “Trade Terminal.”
What Expert Are Saying:
Like Sharekhan, IIFL can be considered a good option for traders who want good offline support, tips and advice support, and an experienced, trustworthy old stockbroker. IIFL is not recommended for traders looking for a low brokerage broker as their brokerage fee is the highest in the industry.
Fyers was founded in 2015 by Tejas Khoday and is being promoted by the IIFL founders. They charge Rs 20/order or 0.01% of the trade, whichever is lower as the brokerage fee for Futures trading and Rs 20/order for Options trading as the brokerage fee. They provide up to 2X to 3X margin on commodity trading.
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You can open fyers account for Rs 400 for both the equity & commodity segments.
Some of the reasons that you can consider while choosing Fyers as your commodity trading stockbroker are:
- FYERS have good customer support because of a low client base.
- FYERS trading platform and charting are also acceptable & well known in the stockbroking industry.
What Expert Are Saying:
FYERS can be considered a good option for traders who want good customer support and a trading platform.
5Paisa is another commodity discount stock broker founded in 2016 and has headquarters in Thane, Maharashtra. They are a publicly listed company on NSE and BSE stock exchange.
5Paisa charges Rs 20/order for futures and options commodity trading. They provide up to 2X to 3X margins on commodity trading. You can open a 5paisa accounts for in commodities segments.
Some of the reasons that you can consider for choosing 5Paisa as your commodity stockbroker are:
- 5paisa provides brokerage plans to offer advice and tips, charge less brokerage, and many other benefits. This is very helpful for traders that make a large number of trades.
- You can invest from your 5Paisa account in mutual funds. They also charge zero brokerage fee for that.
- 5paisa Mobile Trading Application is also useful.
What Expert Are Saying:
5Paisa is a standard commodity broker where you get an average margin and a good trading platform.
Stoxkart is a discount broking firm by SMC Global, a financial services company. They charge Rs 15/order as a brokerage fee for commodity trading, but here, you only have to pay the fee only when you make a profit. You can get up to 6X margin on futures trading but no margin on commodity trading. You can open trading account with Stoxkart for Rs 500 to trade in the commodities segment.
Some of the reasons that you can consider while choosing Stoxkart as a commodity broker:
- Stoxkart charge less brokerage fees as compared to other brokers.
- Stoxkart have an advanced trading platform that is quite helpful for advanced traders.
- You can invest in mutual funds also through a Stoxkart account.
- Stoxkart provides comparatively good margins.
What Expert Are Saying:
You can consider Stoxkart for its advanced trading platform, good margins, and if you want to invest in mutual funds along with commodity trading.
Conclusion
Tips For Choosing Commodity Broker
The margin, trading platform and customer support are some of the most important things that you should keep in mind while choosing a commodity broker.
In commodity trading, you have to buy in lots size, therefore the capital required is higher in commodity trading compared to Equity trading. So, choosing a broker providing a more significant margin can be a massive advantage over other brokers.
You must not only select a broker providing the high margins as in commodity trading but you also have to monitor every bit of small movements due to high volatility. Hence you must also look for a broker providing an excellent fast & reliable trading platform.
The next important things can be good customer support, brokerage, and other charges that you can also consider after margins and trading platform. Hopefully, after reading this blog, you must have got an idea of the top commodity brokers in India and will be able to select the best one for you.
