Now that you have decided to trade in commodities, it make sense to choose the broker which will best suite your needs. Think what type of broker you need. Do you need someone who provide you tips or someone who have a weekly newsletter and a analyst staff to tell you what to trade. Do you trade through phone by calling or you are comfortable trading through web. These are some of the basic question you should ask before choosing the broker which will be right for you.
Below you will find the list of the best commodity brokers but choose someone who will be a best fit for you. Call then, talk to them and then decide. Even it is not that difficult to change the broker once you have an account with them but it still is not recommend. You should also get a better understanding about the margin which your broker will provide to you.
1) Angel Broking : They are one of the largest equity brokers in India and as people started to trader in commodities, they just choose the same broker which they were using for equity. They are a full service broker and provide all basic services like online trading, call and trade. They also have analyst which will call and tell you when and what to trade if you want. There brokerage varies from .30%. To get more details on how to open account, please provide your details by clicking on the button below.
2) Zerodha : The are one of the largest discount brokers in India and have more than 45,000 clients trading with them. They have a very aggressive brokerage and charge Rs 20 or .01% whichever is lower per trade irrespective of the value of the trade. In simple terms, it means that the maximum brokerage you will pay per trade is Rs 20 whether you but 1 lot or 10 lot of Gold. So if you are a trader and trade with them you will end by saving lots of brokerage. But do remember that they are discount brokers and don’t expect a recommendation from them about which commodity to buy. They prefer there clients to trade through online platform even though they have a call and trade service available. So if you are comfortable trading online and not seeing your broker, they are the brokers for you.
2) RKSV : They are the second largest discount broker in India and provide a competitive brokerage rate of Rs 20 per trade or .01% whichever is lower. So if you are trading in mini lots, your brokerage will be even less than Rs 20 per trade. The one thing to remember is discount broker don’t provide advisory service which means that they will never call you and ask you to trade in some specific trade.
Apart from these there are other full service brokers like Sharekhan and HDFC which provide commodity trading services. There are many other discount brokers like SAS Online, Trade Smart online which also provide commodity services at a very competitive rate. The documents you will need to open account with these brokers are PAN Card and Bank account. Most of the brokers now allow to fill the form online, take a printout and send a complete signed up form to the broker. There is IPV(In person verfication) on computer camera and then you are ready to trade.
There is one question which most of the readers have about the safety of discount brokers. But they are unfounded in most of the cases. SEBI have very stringent rules which these brokers have to comply with to provide online trading service. Even then if you have some question give these brokers a call and only open a account with them once you are comfortable.