How To Buy Commodities in Zerodha

According to the research report, Zerodha is one of the best top 20 stock brokers in India with the largest user client base (more than 64 lakh client base). 

Zerodha MCX commodity trading allows you to buy and sell commodities like Silver, Gold, Zinc, Copper, and Crude oil. You can trade only in commodity futures and options (F&O) segments. 

Before you can start trading commodities in Zerodha, you need to open a commodity account. For a commodity account, Zerodha will charge you Rs. 300.

However, if you already have a both trading and demat account with Zerodha, you can activate the commodity trading account by paying Rs. 100 more. 

Account opening charges with Zerodha offline:

Equity trading and demat account	Rs. 400
Equity trading, demat and commodity account	Rs. 600

Types of MCX Commodities Trading in Zerodha

#1. Non-Agri Commodities 

• Base Metal: Aluminium, Alumini, Copper, Lead, Lead mini, Nickel, Zinc, Zinc mini and MCX Metldex. 
• Bullion: Gold, Gold mini, Gold guinea, Gold petal, Silver, Silver mini, Silver micro and MCX Bulldex.
• Energy: Crude oil, Crude mini, Natural gas, Natural gas mini and MCX Enrgdex. 

#2. Agri Commodities – Cotton candy and Kapas

#3. All Other agri commodities – Mentha oil

How To Open Commodity Account with Zerodha

You can follow these steps to open a commodity account with Zerodha:

Step #1. Log in to your Zerodha account at the console.

Step #2. Click on the “Activate Segment” option.

Step #3. Select the “Commodity Account” option.

Step #4. Click on “Continue” to proceed.

Step #5. Provide your income range, trading experience, and commodity trading classification.

Step #6. Upload an income proof document by clicking on “Choose file”.

Step #7. If the file is password-protected, enter the password and accept the terms and conditions. Click on “Continue”.

Step #8. Proceed to e-sign and click on “Sign now”.

Step #9. Enter your Aadhaar number and click on “Send OTP”.

Step #10. Enter the OTP and click on “Verify OTP”.

Your commodity account will be opened within 48 working hours.

Commodity Trading Classification

You need to select any one of the following commodity trade categories based on your profile.

• Farmers/FPOs: If you are a farmer, part of farmers’ cooperatives or belong to Farmers Producers Organisations (FPOs).
• Value chain participants (VCPs): If you are a processor, commercial user as dal and flour miller, importer, exporter, physical market trader, stockist, Cash & Carry participant, SME/MSME & Wholesaler.
• Others: If you intend to trade on MCX and don’t belong to any of the above categories.

How to Buy Commodities in Zerodha

Step #1. Log in to your Zerodha kite account using your user ID and password. Ensure that you have a commodity account activated in your Zerodha account.

Step #2. You can add funds with zerodha for commodity trading. You need to maintain separate funds for Equity and Commodity trading. You cannot utilize, adjust or move the funds within Equity and Commodity.

Step #3. In the search bar, you can search the commodity that you want to buy and add it to your watchlist. 

Step #4. Select the commodity you want to buy. Then click on the “Buy” button. 

Step #5. Enter the quantity of the commodity you wish to buy.

Step #6. Set the price at which you want to buy the commodity. You can choose order types such as limit order and stop-loss order for MCX options. You cannot place market orders for commodity options trading.

Step #7. Review your order details and swipe on the ‘Buy’ button to place your order.

Step #8. Your order will be executed successfully. 

You may also like to read the best strategies to commodity trade in Natural Gas for profit.

Zerodha Commodity Trading Time

Segments	Trading Time Hour
Internationally Referenceable Non-Agri Commodities	9:00 AM to 11:30 PM (March to November) 9:00 AM to 11:55 PM (November to March)
Internationally Referenceable Agri Commodities (Cotton, CPO & Kapas)	09.00 AM to 09.00 PM
All Other agri commodities (Mentha oil)	09:00 AM to 05:00 PM

Zerodha squares off all MCX intraday positions 25 minutes before the market closes. If you fail to square off your positions within the cut-off time, Zerodha will auto-square off the open intraday positions with a charge of Rs. 50 per squared-off position.

Zerodha Commodity Brokerage Charges

Zerodha charges a flat brokerage rate of 0.03% or Rs. 20 per executed order, whichever is lower, for commodity trading.

In addition to brokerage charges, Zerodha also charges a few other fees for commodities trading, such as transaction charges, GST, stamp duty, and SEBI turnover fees.

Zerodha charges	Commodity futures	Commodity options
Brokerage Fee	0.03% or Rs. 20 per executed order whichever is lower	Rs. 20 per executed order
STT/CTT	0.01% on sell side (Non-Agri)	0.05% on sell side
Transaction charges	Group AExchange txn charge: 0.0026%Group B:Exchange txn charge:CASTORSEED – 0.0005%KAPAS – 0.0026%PEPPER – 0.00005%RBDPMOLEIN – 0.001%	Exchange txn charge: 0.05%
GST	18% on (brokerage + SEBI charges + transaction charges)	18% on (brokerage + SEBI charges + transaction charges)
SEBI charges	Agri: Rs. 1 / crore + GSTNon-agri: Rs. 10 / crore + GST	Rs. 10 / crore + GST
Stamp charges	0.002% or Rs. 200 / crore on buy side	0.003% or Rs. 300 / crore on buy side

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