Have you often heard people talking of buying gold for trading? You sure must have! There are different brokers offering commodity trading options and so here we are with one of them, Zerodha. To begin with, here is the complete detail of the Zerodha commodity account.
Here with the commodity trading account, you can trade in different agri and non-agri commodities. So if you are willing to trade in any one of them like the most popular one, Crude oil trading in Zerodha, then grab a complete detail of the account opening and other important aspects here.
So, let’s begin!
What is Commodity Account in Zerodha?
If you are willing to step into the emerging segment of commodity trading, then the Zerodha commodity account is a perfect option for you. But the question here is, what is a commodity account in Zerodha?
A commodity trading account is an account that you open with your stockbroker when you want to trade in the commodity segment. For commodity trading, your stockbroker should be registered with the commodity stock exchanges. (MCX and NCDEX)
Just like the equity market, commodity markets also function on momentums and fluctuations. The only difference is that you can only trade commodities in the futures and options.
The commodity trading time in Zerodha starts from 9:30 am- 11:55pm for most of the internationally acclaimed commodities as well.
If you are willing to open a Zerodha commodity account, then let us discuss that in the upcoming segment.
How to Open Commodity Account in Zerodha?
Opening a Zerodha commodity account is essential when you want to venture into the world of commodity trading. Although, there is one interesting thing to notice in commodity trading. You technically do not need a demat account if you just want to do commodity trading.
This is because of the fact that you only trade in futures in commodities. Let us know have a quick look at the opening process of the Zerodha commodity account.
You need to open a Zerodha account before activating the commodity segment in Zerodha. The process of opening an account is given below.
You can easily open your account online by visiting the website.
Enter your basic details like name and phone number.
After this, upload the required documents like PAN aadhar, aadhar card, income proof, address proof, etc.
You will be redirected to complete the e sign process. For this you will receive an OTP on the registered number linked with your aadhar card and on verification, your account will be processed.
Complete the payment and your account will be opened successfully.
Once you have this account, you can easily activate the commodity segment. The process is discussed in the further segment.
Zerodha Commodity Account opening for Existing Customers
If you are an existing customer of Zerodha, then also you can open your commodity account by simply following the above steps. But what if your phone number is not linked to your Aadhar card?
Don’t worry, in this case, you can open your commodity account offline. For this, you can download the commodity trading form, fill it, and post it to the stockbroker.
You will have to pay some extra charges for this though, but in case you fail to open your commodity account online through Zerodha KITE, this method can be a saviour for you.
Zerodha Commodity Account Opening Documents
You need some documents for opening the commodity trading account in Zerodha. Given below is the list of documents that you should keep handy so that the account opening process becomes smooth for you.
Bank proof (cancelled cheque)
Income proof (this is an important aspect if you are trading in the commodity segment) the following documents for income proof are accepted.
Bank statement of the last six months. The average balance in this should be at least ₹10,000.
Salary slip (recent) and the monthly salary average should be ₹15,000.
You can also submit an ITR acknowledgement slip. In this, the income should be at least, ₹1,20,000.
If your gross annual income exceeds ₹1,20,000, then you can also submit Form 16.
If your net worth is more than ₹10,00,000, you can also submit a certificate.
If your demat account holdings are worth ₹10,000 at least, you can also use that as income proof.
You can use these documents and get your account opened quickly and efficiently.
Zerodha Commodity Account Opening Form
Many times, the online process doesn’t go as planned and then you need a backup option. Also in cases, when your aadhar is not linked to your registered mobile number, you can also open the zerodha commodity account offline.
You can download the Zerodha commodity account opening form and open the account easily and in few steps.
Zerodha Commodity Account Activation
Once you have opened a Zerodha account, you can easily open the commodity account as well by just activating the segment.
Log in to the console using your credentials.
Now you will see a commodity segment. On that tab, click on the ‘activate segment’ option.
Later you will see a drop-down menu. Fill in all the details like income range, trading experience, and trade classification.
You will now be required to attach an income proof as you will be trading in the derivatives segment.
You will now be required to proceed with the e-sign on NSDL and Digio.
Once you reach the NSDL website, enter the aadhar number linked with your mobile number. Enter the OTP received on the registered mobile number and click on verify.
Once the verification is done, your Zerodha commodity trading account will be opened in 48 hours.
It is certain that the brokers usually charge some amount when you want to open a trading account, be it commodity or equity. Similarly, Zerodha also levies some charges when you open a commodity account in Zerodha.
In the upcoming section, we will talk about,
Account opening charges
Account maintenance charges
Zerodha Commodity Account Opening Charges
Some of the brokers charge for the account opening, and Zerodha is one of them. It charges you for opening a demat and trading account and an extra charge when you want to open a commodity account.
The charges are listed below.
If you have paid ₹300 at the beginning of the opening process but haven’t activated the commodity trading segment, then you can simply activate the account and you wouldn’t be charged again.
Zerodha Commodity Account AMC charges
AMC or account maintenance charges are levied by the broker to maintain your demat and your trading account. There are no AMC charges on the Zerodha commodity account but for the commodity trading, you need to have a trading account, therefore Zerodha charges for this as well.
The AMC charges for the Zerodha commodity account are given below:
Zerodha Commodity Account Login
Once you have opened a Zerodha commodity trading account, you need to log in so that you can trade efficiently and effectively. You can use the desktop or mobile app to trade.
Once you have opened your account and set your password, you can easily log in using the given steps.
Enter the received client ID and password.
Enter the four-digit pin and log in.
After this, you can easily buy commodities in Zerodha.
Commodity trading might look a little difficult because of the derivatives segment involved with it. But when you are associated with the right broker and have the right strategies, you can easily reap profits.
If you are willing to do commodity trading, then open your demat account today and start trading.