Commodity Trading Platforms are a definite area that MUST be discussed and known about before you start putting in your hard-earned capital into this form of trading. This is for the simple reason that these platforms help you to decide whether you would be able to successfully churn out money from your trades.
This needs to be understood that Commodity markets are quite volatile and offer a lot of risks to the inexperienced traders. If an investor is planning to enter into the commodities trading market, he must be well prepared in advance and must gather all the information, knowledge and resources to keep him afloat during the process.
Like all the other forms of trading, commodity trading also requires a lot of practice and experience to be able to make successful trades.
Mostly the traders learn out of their own experience, however, a lot of information can also be gathered second-handedly through the experience of other investors, by reading commodity trading books, and by taking advice from the experts in the field.
Commodity Trading Platforms Review
In order to be profitable at commodity trading, the trader must understand fundamental analysis which includes the actual factors that affect the price fluctuations of the commodities, including the changes in demand and supply and the economic, political and geographical factors that directly or indirectly influence demand and supply.
Along with the fundamental analysis, technical analysis also plays a vital role in commodity trading. Technical indicators help investors in predicting trends in the price of commodities and set up their trades accordingly.
At such a juncture, commodity trading platforms and tools become the trader’s best friends.
Irrespective of whether the trader is new or experienced, there is a lot to be learnt from and to take benefits from the commodity trading platforms and tools. The choice of the trading platform and tools are mostly correlated to the choice of the broker as it is the broker who provides the commodity trading platform and tools to the traders in most cases.
Therefore, it is a critical decision to choose an efficient broker services company. The broker company not only takes orders on the trader’s behalf and executes them but also provides its expert advice and the trading platform and tools.
While making a decision, the trader must take a demo of the platform and tools that the broker has to offer to understand how in-depth knowledge do they provide and what all technical indicators are available.
Top Commodity Trading Platforms in India
The good and efficient commodity trading platforms and tools must allow the users easy and user-friendly experience, speedy access along with providing analyst research, portfolio trackers and live streaming, among other features. The trading platforms also vary in terms of the fee they charge and thus affect the net profit of the trader.
According to the ratings given to the trading platform and tools offered, considering features, fee and other features, the 5 commodity trading platforms and tools used most widely are:
Zerodha provides one of the most efficient and modern commodity trading platforms known as Zerodha Kite. It is a simple yet innovative commodity trading platform which is suitable for modern time trading. The platform is very easy to use and accessible and offers many innovative features.
This platform is very carefully designed with the user-interface that helps in buying, selling, analysing and managing the portfolio. Alongside, it also provides real-time data regarding prices, quotes, ticks and orders through the data widgets, with absolute zero latency. This is one of the most required features for an efficient commodity trading platform.
Along with the detailed information, Kite also provides technical analysis tools like advanced forms of charts which are very powerful and customisable. Kite also offers online education to the traders through Varsity. In spite of all the excellent features, Zerodha charges a low brokerage of ₹20 or 0.01%, whichever is lower, per executed trade on commodity trades on MCX.
Angel Commodities Broking is a member of the MCX and NCDEX and provides one of the most useful commodity trading platforms for trading in all the commodities. The commodity trading account is free and the brokerage is as low as ₹15 per executed trade for orders less than ₹50k value and ₹30 otherwise (check Angel Broking Brokerage Calculator for more).
The platform provides excellent resources, along with tips and recommendations to figure out the top commodities to invest in.
A unique feature is the highest levels of leverage of up to 40 times which offer the highest exposure to the traders.
The platform gives a personalised experience to the investors with the help of dedicated relationship managers and dealers and is the one platform that offers the best of services and experience.
All the aspects of commodity trading can be handled on a single platform including creating and managing a portfolio, receiving real-time and updated market reports and quotes and ability to trade online anytime from anywhere.
Sharekhan is a full-service stockbroker that provides both equity and commodity trading services. It offers a single trading platform for commodity along with all the other segments. The specific commodity trading platform is called ComTrade.
It helps the traders to trade in commodities on MCX and NCDEX and provides complete services including searching the entire list of commodities along with live charts, quotes and prices.
The charts are extensively available in the most advanced versions and they can be studied, analysed and used to open trade positions right then. ComTrade keeps the trader updated with all the open positions in all the commodities like Gold, Silver, Oil etc. and also lets the trader square off positions straight away.
The charts are live with the line, candlestick, bar and area options, with various time intervals ranging from 1 minute to yearly and also has tracker ball feature.
ComTrade also lets the trade receive news about the commodities to help to make a profitable decision and provides resources for research and training in the form of daily research reports including fundamental and technical short-term and long-term reports.
Furthermore, Sharekhan offers a trading platform such as Sharekhan Trade Tiger which provides a decent trading experience as well.
TradePlus is one of the lowest brokerage commodity trading platforms in India. It provides an infinite commodity trading plan at ₹99 per month for unlimited commodity trading on MCX. The transaction charges are the lowest and the brokerage also gets refunded if the trader does not trade in any given month.
Along with low brokerage, TradePlus offers excellent features like brokerage calculator and margin calculator, along with providing market information, analysis and trading solutions. There are multiple blogs and articles to assist the trader in making the correct decision, although it does not provide any research, tips or recommendations.
There is a specific commodity trading platform INFINI-TRADER (NEST) and a specific technical analysis tool called INFINI-POWER that helps the traders immensely in technical analysis before taking a position. The fund transfers can also be completed safely and securely through the platform.
Upstox provides one of the most comprehensive commodity trading platforms. It offers many innovative and powerful tools to assist the commodity traders like the advanced charting, live market data and excellent user experience.
The trades on different exchanges can all be viewed and monitored on a single platform and it offers resources for all the commodities including gold, silver, zinc, oil, copper and natural gas.
The technical indicators are advanced and varied to analyse the markets smartly with powerful charts and more than 100 indicators to choose from. Using this platform, orders can be placed and positions can be squared off in one click.
Upstox provides a 3 times margin for both buying and selling for MCX Futures and is therefore quite useful for the traders looking at high leverage. The brokerage is also quite low at ₹20 per executed order.
Thus, there are multiple excellent and efficient commodity trading platforms and tools available at the disposal of the commodity traders to be able to choose from.
The platform and tools provide a big helping hand to the traders in making analysis, along with using their own knowledge and information, in making the right trading decision, which earns them huge profits and helps them to avoid big losses.
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