More on Commodity Trading
Angel Broking is a full-service retail broking house. It was established in the year 1987. It offers its services through its online trading platforms and also has a network of more than 11,000 sub-brokers.
Its apps and digital platforms are widely used for equity and commodity trading. To know which one to choose for investment among Equity vs Commodity. Let us discuss details about trading with Angel commodity.
How to Activate Commodity in Angel Broking
Commodity trading is done through trading in futures and options of commodities like:
- Precious metals like gold and silver
- Base metals like copper, zinc, etc.
- Energy like crude oil and natural gas
- Agricultural products like wheat, chana, soya bean, etc.
Commodity trading is done mainly on 2 commodity exchanges :
In order to trade in commodities, it is necessary to open commodity trading account. Currently, it is not possible to trade in commodities using an already existing demat account for stocks, futures and options.
In case, an investor has a demat and trading account with Angel Broking and now wants to venture in commodity trading as well, he/she will have to submit a “Segment Activation request” in order to start trading in commodities as well.
In case a person does not have an existing equity demat and trading account with Angel Broking, he / she needs to open a commodity trading account to be able to trade in commodities.
The Angel Commodity account is very easy and convenient to open and the whole process can be completed within minutes. Let us learn what needs to be done to open a commodity trading account with Angel Broking.
The step by step process is entailed below:
1. The account opening form for commodities needs to be filled (to get started, you can fill the form displayed at the bottom of this review as well).
2. Some basic documents need to be submitted along with the form. These documents are taken as Identity and address proof like PAN card, Aadhar card, voter id, driving license, passport, etc. Income proof like bank statement or Form – 16 can be submitted.
3. A member-client agreement needs to be submitted on a non-judicial stamp paper.
4. In order to trade commodity futures and options, initial margin money needs to be deposited.
The initial Angel Broking Margin depends on the transactions done by a trader and can vary from 5% – 10%. (For more information, check this detailed review on Angel Broking Margin Calculator).
To know about their Margin, read about Angel Broking Margin Funding and get yourself cleared about how much margin they provide to their client.
Note – The trading in commodities is done by two types of products which are futures and options.
Also, read Angel Broking Sub Broker
Angel Broking Commodity Brokerage Charges
Whenever a trader makes a transaction, he/she needs to pay two kinds of charges. One is paid to the broker through which the transaction is being made.
The other charges are standard charges that need to be paid to the government. Some examples of such charges are transaction charges, SEBI charges, DP charges, stamp duty, etc.
Let us first try to learn about the brokerages charged by Angel Broking. Since April 2019, iTrade Angel Broking has been started offering discounted brokerage across all segments now.
According to this plan, Angel Broking charges a flat brokerage of ₹15 for an order size less than or equal to ₹50000 and a flat brokerage of ₹30 for an order size of greater than ₹50000.
It charges no Annual Maintenance Charges (AMC) fee. One can avail of the call and trade facility at a flat rate of ₹20 for every order.
Now, we have already learned about the brokerages charged by Angel Broking for commodity trading. For more information, you can check this detailed Angel Broking Brokerage Calculator as well.
Let us now discuss the other standard charges that need to be paid to the government.
Also, please note that there are some common charges that apply to each and every segment like GST, SEBI and stamp charges.
GST applicable is 18% on the sum of brokerage and transaction charges.
SEBI charges are ₹15 per crore.
Stamp duty depends on the state where the account holder’s residential address is.
Angel Broking Commodity Apps
Angel Broking offers three commodities apps to its clients to trade and make investments. Let us discuss each of the trading platforms with its features in details.
This is a mobile phone application which is powered by ARQ Angel Broking.
ARQ is a rule-based technological investment and advisory engine. This app has been awarded the “Best Mobile Trading App”. Some of the best features of the app have been listed below –
- Intraday technical charts equipped with technical indicators.
- Live quotes
- Customised notifications for trades
It is a web-based trading platform which can be used directly. No installation is required to use Angel Broking Trade for commodity trading.
Some of the best features of the app have been listed below –
- Latest news updates and market data.
- High-Speed platform with a user-friendly interface.
It is a trading software which can be downloaded on a desktop or laptop. Some of the best features of the app have been listed below –
- Historical data of the last 20 years
- Research Reports
Most of the trading platforms provided by this stockbroker are better than the industry standards.
Angel Commodity Research Tips
When it comes to Commodity trading research, Angel Broking provides multiple levels of recommendations. Here are the details:
- Fundamental Reports
- Daily Metals and Energy Fundamental
- Daily Agri Report
- Weekly Commodities Fundamental Report
- Monthly Commodities Fundamental Report
- Technical Reports
- Daily Metal and Energy Tech Report
- Daily Agri Tech Report
- Weekly Commodity Technical Report
- Monthly Commodities Technical Report
- Special Reports
- Pound Update
- Nickel Update
- Lead Update
- Chana Update
As listed above, Angel Broking Commodity research is done pretty exhaustively and covers multiple investment products.
These reports, depending on their type and purpose, are published at different frequency levels including daily, weekly, monthly etc.
Angel Commodity Margin
The margin limits in case of Commodity segment are very limited.
You can only avail margin of up to 3 times by Angel Broking. This can be seen as one of the lowest margin values provided by a stockbroker in the commodity segment.
Nonetheless, it depends on your trading requirements and objectives and if commodity margin is not that important to you, you can go ahead with the stockbroker.
Angel Broking Commodity Customer Care
This is one of the weakest links of this stockbroker. Angel Broking Customer care provides multiple ways to reach out as listed below:
- Offline Branches
The benefit of using the services of a full-service stockbroker is that they can also send their representative or RM (Relationship Manager) to your home/office in case you are in the vicinity.
However, when it comes to the qualitative part, the broker still has some room to improve.
Angel Commodity Pros
Now, let us discuss some of the advantages of commodity trading through Angel Broking –
Highest Leverage in Industry: Angel Broking offers the leverage of up to 40 times to its clients. This leverage is one of the highest leverages given in this industry.
Higher leverage directly means better rates of returns on one’s trades. It is quite a considerable positive point of trading commodities with Angel Broking.
Research Reports – This is one of the most important factors while considering a broker for opening commodities trading account.
Angel Broking offers different kinds of research reports free of cost to its clients –
- Fundamental Reports – Daily, Weekly and Monthly basis
- Fundamental Special Reports – Including RBI policy review, seasonal agri reports, etc.
- Technical Reports – Daily, Weekly and Monthly basis
- Technical Special Reports – Including agri and non-agri technical reports, special festival reports, etc.
- Knowledge Series that comes out annually – It provides expert knowledge about commodities
Recognized and Reliable Services – Angel Broking has received many awards for its products and services. Also, the quality of their services gets reflected in the number of retail clients that have been quite satisfied with them.
Currently, Angel Broking has more than 10 lakh clients which seem to be happy and satisfied with the services Angel Broking is offering.
Extensive Network of Angel Commodity Trading – Angel Broking has a presence in more than 900 cities across the entire country.
It has a wide network of more than 8500 + associates and business partners which have been registered with Angel Broking. Also, they have their clients using more than 12000 trading terminal.
A team of relationship managers and dealers have been serving those clients.
Angel Commodity Cons
Every coin has two sides. So, there are some disadvantages to Angel Commodity trading. Let us discuss them as well
Extra Charges for Call and Trade Facility – There are some brokers that offer this facility for free but with Angel Broking, a client would have to pay Rs. 20 for every order he / she places using call and trade.
3 – in – 1 Account Not Offered – Some brokers offer the facility of opening 3 – in – 1 account which saves the effort and time of their clients for opening a separate trading account for commodities.
However, with Angel Trading, one has to either open a separate commodity account or submit a special request for activation of commodities segment (in case of a client who already has a demat and trading account for stocks.)
Angel Broking is one of the best and most trusted names in the Indian industry. Angel Commodity trading can be done on MCX and NCDEX in futures and options of metals, energy products, agricultural products, etc.
Account opening is simple and requires few basic steps like filling up of the account opening form and submission of a few documents and margin money requirements.
The detailed charges associated with Angel commodity trading should be looked at before entering into any transactions. This article has given detail about brokerage costs and other charges and costs related to commodity trading.
Angel Broking offers 3 good trading platforms where one can do commodity trading.
Angel Broking App, Angel Broking Trade and Angel SpeedPro are its various trading platforms equipped with very good and useful features like research reports, availability of historical data, etc.
The different pros and cons related to Angel Commodity Trading have been listed in the article and after analysing them and examining the brokerage costs Angel Broking charges, it can be said that Angel Broking is a good platform for commodity trading for investors and is worth a try.
In case you are looking to get started with stock market investments and trading, let us assist you in taking the next steps ahead.
Just fill in a few basic details to get started:
Nice article, Thanks for sharing.