7 Best Commodity Brokers in India 2024

Even tough I do not trade in commodities. I have few close friends who do deal in commodity futures. Based on my interaction with them, I try to answer the question about who is Best Commodity Broker in India for 2024 and their Pros and Cons.

I have also written an article about the best stock brokers in India for equity investment. You can read that here.

What is Commodity Trading?

Commodity trading refers to the buying or selling of commodities or various financial instruments based on the commodities. Commodity trading is no different than equity trading. Instead of trading shares of listed companies, traders trade on contracts of commodities Futures.

Commodity Futures is an agreement to buy or sell a specific quantity of a commodity at a set price at a future time.

In India, SEBI oversees the functioning of Indian Commodity Exchanges.

Here are the top commodity exchanges in India:

National Commodity and Derivatives Exchange Ltd. (NCDEX)
Multi commodity Exchange of India Ltd. (MCX)
National Multi commodity Exchange of India Ltd.(NMCEIL)
ACE Derivatives and Commodity Exchange
Indian Commodity Exchange Ltd. (ICSE)

Among above, MCX and NCDEX are the most popular commodity exchanges among traders and almost all reputed commodity brokers of India are affiliated to these two exchanges.

Pros and Cons of Commodity Trading

Commodity trading has its own advantages and disadvantages. I am listing some of them.

Biggest advantage is, the trading hours are longer compared to equity market which ends at 3.30PM IST. Commodity market is open until 11.30PM

Pros

Commodity trading time is from 10AM to 11.30PM
Helps in portfolio diversification
can be used as hedge vs other asset classed
Opportunity to get exposure to global market

Cons

Commodities are more volatile compared to equities
Unlike equities which provide dividends, commodity investment do not provide any income
Commodities are highly cyclical

How to select the best commodity broker in India?

Trading in commodities is high risk activity but at the same time it is highly rewarding if done properly.

But you also need to have a reliable commodity broker as your parner if you want to be successful in commodity trading.

But, how to figure out if the commodity broker is good or not?

Below are some pointers which I feel would help you in this regard.

Affiliated to exchanges : Please check at website of the broker, the registration number should be mentioned clearly.
Number of Customers : Higher the number of clients, more popular the broker is
Brokerage ; Gone are the days when we used to pay exuberant charges. Rs 20 is new norm
Trading Platform: Read the review of their desktop platform and mobile app
Customer support : Check various modes of available support such as email, phone, online chat and physical location

Ranking For Best Commodity Broker in India 2024

Commodity brokers come in different shades. But based on the criteria I put above and feedback & ratings from the customers, I have came up with the list of top commodity brokers of India.

Here are the 7 best commodity brokers in India,

Zerodha Commodity Broker
Upstox Commodity Broker
Angel Broking Commodity Broker
TradePlus Online Commodity Broker
TradeSmart Online Commodity Broker
FYERS Commodity Broker
Sharekhan Commodity Broker

#1 Zerodha

Zerodha is pioneer in discount broking in India. They introduced discount broking concept to India.

While traditional brokers charge commission based on certain percentage of total traded value, discount brokers like Zerodha charge only a fixed amount like Rs20 per trade irrespective of trade size.

This results in tons of savings to the customers particularly who trade very frequently.

Zerodha’s trading platform KITE is easy to use clutter free interface which I like while trading in equities. (Read: Best stock market trading apps in India)

Zerodha charges Rs 200 as commodity account opening charges.

Zerodha commodity brokerage charges:

Cons of Zerodha:

Zerodha does not provide any recommendations or tips for commodity trading

Pros of Zerodha:

One of the fixed and lowest brokerage charges for commodity trading in India
“Zerodha Varsity” – one of the finest module to understand more about commodity trading.
Superior trading platforms for both desktop and Mobile.
Best known for product innovation and development.

How to open commodity trading account in Zerodha?

Commodity account in Zerodha can be opened both Online and offline.

If you have Aadhaar card then commodity trading account with Zerodha can be opened within 15 minutes completely online.

Please refer this detailed procedure on opening account at Zerodha.

Zerodha Account Opening Charges:

Online through Aadhaar : Rs 300
Offline by submitting forms : Rs 600

SaveRs200: you can save Rs200 by opening the account online. Use below Link to save Rs 200.

#2 Upstox

Previously known as RKSV securities, the Mumbai based broker is one of the fastest growing broker of India.

But you can trade only at MCX exchange through Upstox.

They set the record of first broker to open 1lakh demat account in a month.

They have backed by well known personalities like Mr. Ratan Tata. Read more about Upstox here.

They also innovated in trading products space and Upstox Pro is their advanced trading platform which is in direct competition to Zerodha’s KITE.

Commodity account opening charges of Upstox : Rs 150

Upstox Commodity brokerage charges:

Below is the brokerage and other charges of Upstox for commodity segment.

#3 Angel Broking Commodity Broker

Angel Broking is a well established full service broker of India.

They have branches at more than 900 cities/towns of India and 8500 sub brokers.

Earlier, as common with full service brokers, they used to charge percentage based brokerage charges.

Recently they have commenced iTrade Plan which charges Rs20/executed order.

Read the complete Angel Broking review which has details of brokerage charges and trading platforms etc.

Angel Broking Account opening charges : Rs600

Angel Broking Commodity brokerage charges:

#4 TradePlus Online

TradePlusOnline provides one of the lowest brokerage charges for commodities in India.

They have an exclusive pack of Rs99/month for unlimited trading . You can also choose flat brokerage plan in which Rs9/order is charges.

In both the cases, the fees are lower than that of Zerodha. But Tradeplus is not as big brand as that of Zerodha.

They are based out of Chennai and subsidiary of Navia markets who is a full service broker. Navia markers are into brokerage business for more than 3 decades.

Read the detailed review of TradePlus online.

And Tradeplus also does not provide any research reports and tips and there will also be no RM (Relationship Manager).

TradePlus Commodity brokerage charges:

#5 TradeSmart Online

TradeSmart Online is top rated online brokerage arm of VNS Finance who is full service broker popular in Mumbai.

VNS Finance is into brokerage business for last 3 decades offering services in Equity, F&O, Currency and Commodities.

TSO charges Rs 15/executed order irrespective of the size of the order. They also have another plan called Value plan which charges 0.007% for commodity futures.

Read more about them at TradeSmartOnline information.

TradeSmart Online account opening charges: Rs200. Currently they are waiving off the account opening charges.

TradeSmart Commodity brokerage charges:

#6 FYERS Securities

FYERS stands for Focus Your Energy & Reform Self is based out pf Bengaluru.

This discount broker started operation lately compared to Zerodha but they are growing at higher pace.

Their trading platforms are also top notch and named as FYERS ONE and FYERS Market.

FYERS commodity trading account opening charges : Rs400

FYERS Commodity brokerage charges:

The brokerage structure is also same as that of Zerodha.

#7 Sharekhan

Sharekhan is a leading commodity broker of India. Apart from commodities, they also provide service in other segments such as equities, F&O and Currency.

They also have specialized service such as Portfolio Management Service (PMS).

They also conduct regular classrooms and workshops for their customers.

But brokerage charges of Sharekhan is one of the highest in India which makes them expensive for the traders who trade frequently.

Read further details about their brokerage plans at Sharekhan review.

Account opening charges are Zero at Sharekhan. Annual Maintenance Charges (AMC) is zero for first year and Rs 400 from second year onwards.

Sharekhan Commodity brokerage charges:

Best Commodity Broker in India : Conclusion

Commodity trading is very lucrative if done properly. Trading hours are longer than equity trading hours.

Working people who are busy with 9AM-6PM job can also trade once they reach home.

But, since commodities are very volatile compared to stocks (large caps atleast), the platforms has to be top notch without much downtime.

At the same time brokerage should also needs to be reasonable at par with industry standard. Rs20/trade has become standard nowadays. Gone are the days when traders used to pay in percentage basis.

All in all, I have tried to come up with list of best commodity brokers of India which are good for both beginners and experienced traders. You can consider anyone to open your account. If you have accounts with any of these commodity brokers, please share your ratings and feedback.

I trade in equities through Zerodha and can easily recommend them any day.

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