Commodity trading is one of the best ways to create wealth in the short term. The commodity market is a very good alternative to trading in equities and exhibits a host of different asset classes ranging from agricultural commodities like wheat, paddy, and maize to non-agricultural commodities like copper, zinc, and steel. That’s not all. You also get to trade in bullion like gold and silver as well.
That said, if you’re planning on taking up commodity trading, you should know that a brokerage firm plays a huge role in shaping your experience. Here’s a list of 5 great features of the commodity market that you can benefit from when you sign up with a commodities brokerage firm.
5 Great Features Of Commodities Trading Brokerage Firms
In India, many stock brokers also double up as commodities brokerage firms. And as such, you get the benefit of also being able to use the features that are offered to equity traders. Let’s take a quick look at the features.
1. Lower margins
One of the major features of the commodity market is lower margin requirements on derivative contracts. This is quite unlike the equity market, where the margin requirements on derivatives tend to be very high. This allows you to take up positions that are far larger for a much lower overall cost.
2. Attractive brokerage
Another feature of commodities brokerage firms is the very attractive brokerage that they charge. Apart from a few who still charge brokerage as a percentage of the total trade value, most of the commodity brokers have moved on to charging brokerage as a flat-rate fee per trade irrespective of the trade value. Thanks to such lower brokerages, your profits are preserved and don’t take a major hit.
3. Research reports and advisory
Full-service commodity brokerage firms provide intraday and positional advice and other research reports for a small fee. With the help of such research data, you can take an informed trading decision.
4. Multiple trading platforms
Almost all commodities brokerage firms give you the freedom to trade on multiple devices. Their trading platforms can be accessed across devices ranging from desktop computers to mobile devices. This flexibility allows you to place trades quickly and from almost anywhere in the world.
5. Robust customer support
Another one of the very underrated features of commodity market brokers is their customer support. Full-service brokers such as Motilal Oswal offer exceptional and timely customer support that not only helps clarify your doubts and queries. You can even call and place an order if you don’t have access to the trading platform but would still like to make use of a trading opportunity.
Conclusion
With this, you must now be aware of the great features that commodities brokerage firms offer. So, what’re you waiting for then? Head over to the website of Motilal Oswal and sign up for commodities trading now!
Alternatively, if you’re interested in investing in upcoming IPOs or trading in equities, Motilal Oswal can help you in that regard as well. You can open a demat accountand a trading account within minutes through a completely paperless process and start your wealth creation journey in no time.
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