Best Commodity Brokers in India : Top 5 Brokers of 2023

Finding the best commodity brokers in India is the first step in starting commodity trading.

In the first half of the current fiscal year, FY 2021-22, commodity trading had an average daily turnover of Rs. 29,021 crore. Trading in options contracts increased by approximately 197% in FY 2021-21 to Rs. 8.7 lakh crore of notional trade value (including both options on futures and options on goods) from Rs. 2.9 lakh crore the previous year. (Source : MCX)

Table of Contents

• 1. Registration :- 
• 2. Brokerage charges :-
• 3. Trust :- 
• 4. Popularity :-  
• 5. Customer support :-
• 6. Trading Platform :-
• Top 5 commodity brokers in India
• Top 5 Commodity Brokers in India : Trust and popularity 
• Top 5 Commodity Brokers in India : Brokerage
• Best Commodity Brokers in India : In Customer Support
• Top 5 Commodity Brokers in India for Trading Platform
• Summary 

With the growing interest of market participants in commodity trading, many brokers in India are offering commodity trading options on their trading platforms with attractive brokerage charges.

In such a competitive environment, traders should conduct thorough research to determine their trading requirements and select the best commodity broker in India.

In this blog, I will go over all of the benefits and drawbacks of the existing brokerage options in India as of 2022.

Before we try to understand all of the options, let us quickly go over some important factors to consider when choosing the best commodity broker in India:

1. Registration :-

A broker must be registered with a commodity trading exchange in India.

Two major operational commodity exchanges as per SEBI directives in India are  

Multi Commodity Exchange (MCX) &  National Commodity and Derivatives Exchange (NCDEX)

2. Brokerage charges :-

Brokerage charges are fees collected by brokerage firms in order to facilitate trade orders and provide service as exchange members. Traders should always check the brokerage charges before opening an account with a broker.

3. Trust :-

Customers in the banking or brokerage industries always look for trust and transparency; it is a key metric you need to have a trustworthy broker for trading.

4. Popularity :-

Another important factor to consider is popularity, because popular brokers typically have better service and technology to provide their clients with the best trading experience. You should also look for updated popularity data on a regular basis because popularity changes as new players enter the market.

5. Customer support :-

It is critical to investigate the customer support options available with brokers, as well as how quickly customer inquiries are typically resolved.

6. Trading Platform :-

The trading platform includes –

 1. Trading console –  To place orders, which should be fast and free of bugs. 

 2. Charting software-Many traders use third-party charting integrations. You need to ensure there are no chart data delay issues because of such integrations.

3. Trading tools – With new technological advancements in quants and algo trading, high frequency trading tools are in demand. If you need to use those tools, make sure the broker can provide them.

Top 5 commodity brokers in India

The top five commodity brokers are listed below, with ratings based on the metrics discussed in the previous section. 

Top 5 Commodity Brokers in India : Trust and popularity

Top 5 Commodity Brokers in India : Brokerage

Best Commodity Brokers in India : In Customer Support

Top 5 Commodity Brokers in India for Trading Platform

Summary

• The brokerage industry is rapidly changing.
• Recent years have proven to be the years of discount brokerage.
• Many new players entered the market, followed by the influence of retail traders.
• Although the Indian commodity market is still in its infancy, there are many best commodity brokers in India for those who are interested in commodity trading.
• As far as broker selection is Considering my own experience in commodity trading, I think that Indian brokers still have a ways to go before offering top-notch performance and customer service.
• Dhan Broker and Trading View have partnered to offer direct trading from charts in terms of trading and charting platforms. It will be fascinating to see how these modern brokers drive the transformation that the Indian brokerage industry sorely needs.

BULLS ARENA TRADING

[Suggested Reading : Crude Oil Trading- How to Trade Crude Oil?]