ICICI Direct is a full-service stockbroker that provides highly competent trading platforms and applications for efficient trading. However, if you want to do ICICI Direct commodity trading, it cannot be done directly.
Also, if you are new to commodity trading, you can opt for commodity courses online in India. There are a variety of courses available, you can opt according to your choice and requirement.
Although you can invest in some commodities through other means which we will discuss in this article.
ICICI Direct Commodity Trading Account
Normally, some brokers in India provide the facility of trading in commodities by just opening a trading account with them. Whereas, some brokers need you to fill a separate form to activate the commodity trading facility.
On the other hand, ICICI Direct commodity trading account does not allow its clients to trade in futures and options contracts of commodities. Unfortunately, ICICI Direct has not been registered with the commodity exchanges in India like the Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX).
To facilitate commodity exchange in India, they would be required to get registered with these exchanges and make the technological efforts to create a platform for the investors or traders to buy/sell commodity scripts directly through them.
ICICI Direct Commodity Trading Indirectly
Contrary, there is an indirect way through which you can avail of the benefit of commodity trading through an ICICI Directtrading account, which is gold. Let us see how?
Exchange-Traded Funds (ETFs): Exchange-Traded Funds are financial securities that can be traded on the stock exchanges just like any other stock. An ETF can be of many types like an index ETF, banking or international ETFs, or Gold ETF.
Gold ETF can be traded using an ICICI Direct trading account which can be either a 2 – in – 1 account or a 3 – in – 1 account. You need not make any special account opening for trading in ETFs. If you are already an ICICI Direct trading account holder, you can trade in gold ETFs just like trading in stocks.
In case you do not have an ICICI Direct trading account and you want to trade in gold ETFs or any other ETFs through it, you would be required to open an account with them.
After the completion of the account opening process, you would be given a user id and a password. Through this unique login information, you would be able to get access to your trading account and can start trading.
Benefits of Trading in Gold ETFs through ICICI Direct
There are many benefits of trading in ETFs through an ICICI Direct trading account which have been discussed below –
1) They provide the facility of investing in ETFs without the hassles of paper and documents, etc. It is a paperless facility. Also, there is no need to send cheques for the investment.
2) Once you invest in ETFs, you would get instant confirmation of your investment or trade.
3) The capital gains generated by the investment in ETFs can be checked in your trading account with just one click. You can also get to check the realized as well as unrealized profits or losses in your investment in ETFs.
Customers can trade-in equity with ICICI Direct Equity.
Stock trading can be done in any way like a delivery based trade or intraday trading in shares listed on both the major stock exchanges in India.
ICICI Direct commodity trading can not be done directly through futures and options contracts in commodities. However, there is an indirect way of investing in one special commodity, gold through investment in its exchange-traded funds.
Gold ETFs are an indirect way of investing in commodities through any of the ICICI Direct trading accounts.
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