CLOSE X

Blogs

How to choose Best Commodity Broker in India

Aug-14-2020Blog by – Mr. Dhruv AjmeraRead Time: 3 Min.Word Count: 687
194How to choose Best Commodity Broker in India

You might have ventured into stock market, Mutual funds, real estate, and equities but commodities are also a focus for active traders. Now… what exactly is a commodity?

A commodity is a raw material or agricultural produce that is cultivated. Crude oil and gold are some of the most common commodities that are traded. These commodities are traded and exchanged on cash markets or as standardized futures exchanges.

The process of futures exchange can be a lot more complicated than the trading itself. Any seasoned trader in the stock market would be able to get a hang of commodity trading quickly but they might want to look out for commodity brokers in India.

The commodities broker will simply sell and buy the futures contracts on behalf of their client, in lieu of a commission or brokerage. An amateur commodity trader must hunt for the best commodity broker so that they can have a comfortable journey in trading in the commodities’ world.


But how does one look for the best commodity broker? Here are some pointers:

  1. Make a list
    Start off your hunt of a commodity broker in India by making a list of all brokers available including all the ones who do commodity trading online. Shortlist the brokers based on their reviews on different platforms. Who knows, you might find some material where someone has already done research on the best commodity brokers!

  2. Check History
    Once you have shortlisted, let`s say, top 5 commodity brokers in India, you can start doing more in-depth research on each organization or company. Check how long they have been in the industry. Along with this, be on the lookout for their regulatory history, the number of clients they serve, what their portfolio and profits typically look like. Keep on adding these details to your list of commodity brokers in India so that you can evaluate and choose by looking at the comparison right in front of you.

  3. Choice of trading platform
    Now there are many new and efficient trading platforms that can make one’s trading experience better. Online commodity trading has become common in India too and one can hunt and ask the brokers for what tools and platforms they use to make your trading experience more comfortable. An online platform with some level of autonomy usually works very well for most people. We say this often: check all out but choose only the best commodity broker!

  4. Know what you want
    While the above mentioned online platforms work well for the seasoned trader, if the commodities world still seems fresh and daunting to you, you might want the trader to assist. If you want to make this long-term, you might want to have a managed portfolio. You can speak to different people in your trading groups, people who have traded in commodities before, and understand the pros and cons of each choice.
    Once you have done that, you would be able to make your goal crystal clear and find the commodity broker in a much more streamlined fashion, even in a vast country like India.

  5. Check the brokerage
    Once you have ticked off the above checkpoints, you need to see if the best commodity broker even fits in your budget or not! More often than not, there are discounts and negotiations available with brokers. Some of them offer discounts when there is a certain trading volume that one has narrowed down to.
    Call your shortlisted commodity brokers in India and discuss these discounts and negotiations with them one on one. Since nobody wants to lose a potential customer, you might be able to find the best broker within your budget fit through this process!


These 5 points are the basic check-list for any commodity trader to look out for. While market ups and downs will determine your profit the most, other than it, your broker’s efficiency will be a determinant too!

We all want a smooth sailing boat, and to ensure that, speak to your broker and establish a good rapport with him.

Once all of this is done, you are free to explore the vast world of commodity trading!


Also Read: Tricks And Tips For Commodity Trading

Rate & Review:GoodOkNot Good

Leave Your Comments

Your Comments
Name
Email
Comments
No comments found

Open Demat Account

ATTENTION INVESTORS KYC IPO

Escalation Matrix

Details of Contact Person Address Contact No. Email Id Working Hours
Client Servicing / Customer care Suresh Munge 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628913 suresh_munge@ajmera.co.in 10:00 am to 6:00 pm
Head of Client Servicing Mr. Dhanesh Bendre's 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628915 dhanesh_bendre@ajmera.co.in 10:00 am to 6:00 pm
Compliance Officer Ashish Ajmera 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628888 ashish@ajmera.co.in 10:00 am to 6:00 pm
CEO / Whole Time Director Ashish Ajmera 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628888 ashish@ajmera.co.in 10:00 am to 6:00 pm

In absence of response/ complaint not addressed to your satisfaction, you may lodge a complaint with CDSL at https://www.cdslindia.com/Footer/grievances.aspx or SEBI at https://scores.gov.in/scores/Welcome.html. Please quote your Complaint Ref No. while raising your complaint at SEBI SCORES/ Depository portal.

Group Companies Members of BSE, NSE, MCX, MSEIL, CDSL, Broking Services, Depository Services
BSE Clearing No.: 911 | NSE Clearing No.: 11858 | MCX Clearing No.: 10665 | MSEIL Clearing No.: 11400 | CDSL DP ID: 30300 | SEBI Regn. No.: IN-DP-715-2022 | SEBI Reg No.: INZ000177531 (Cash/F&O/CDs/MCX)

Attention Investors
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 dated August 31, 2020 and other guidelines issued from time to time in this regard
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
.......... Issued in the interest of Investors

© Copyright 2022 Ajmera Associates Ltd
Designed, Developed & Content Powered by  Accord Fintech Pvt. Ltd.