The commodity trading of gold, silver, crude oil, and agricultural products has never been easier in the digital world than it is at present. This is because with the advent of technology and convenient platforms, every individual can trade using the best commodity trading apps in India. With these applications, all you need to do is to follow the prices, perform some analysis of charts, and make a trade in real time, so the process of investing in commodities would become easy even for a novice.
We shall look at the process step by step on how to begin trading commodities online with these apps.
What is Commodity Trading
Commodity trading is the business of selling and buying raw materials like metals, energy and farm products. This trading is conducted on 2 major exchanges in India under the Multi-Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX).
The trading is mainly done in the form of futures contracts, whereby investors determine to either sell or buy a commodity at a certain price at a future date. This enables the traders to make profits on price variations. Yet, one should also bear in mind that commodity trading is highly volatile, and clear knowledge of the market is the key to investing in it.
Know the Basics Before Trading
Practice before getting down to it, and make sure you know how the commodity market operates. Two major forms of trades exist: spot trading (sell or buy) and futures trading (contracts to deliver in future). Trading of commodities can be leveraged, enabling you to manage huge trades by making use of a small sum of money. This may bring more profits, but it can also increase the losses.
Risk management is also necessary. You should always place stop-loss orders and never place your whole capital on a single commodity. The vast majority of commodity trading applications provide educational resources, tutorials, and simulated accounts that allow a new trader to trade without spending real money.
Choose the Best Commodity Trading App
A proper selection of the broker and trading platform is the key to success in commodity trading. The app that you choose must be stable, convenient, and have strong trading features.
Zerodha Kite is a trading application that is very popular in India. It has a user-friendly interface, powerful charting utility, and low brokerage charges. The site is a real-time source and serves to trade in commodities, equities, and currencies; thus is very popular among the novice and the expert.
Angel One App combines smart research tools with a simple design. It offers detailed reports, market insights, and expert recommendations, helping traders make better decisions. Angel One is ideal for users who want expert-backed trading support.
Upstox Pro App is famous due to its smooth design and high performance. It provides live charts, price notifications, and low commissions. This is an ideal application to use by traders who appreciate the speed and modern interface.
Groww App, originally built for mutual fund investors, now allows commodity trading as well. Its minimal design, ease of use, and single-dashboard view make it an excellent option for beginners who want a simple trading experience.
ICICI Direct Markets App provides a secure and reputable platform and research reports, technical analysis, and good customer support. It is an excellent option for people who like the support provided by a well-known and traditional financial brand.
4. Open a Commodity Trading and Demat Account
After selecting your brokers of choice, open a commodity trading account and a Demat account. It is entirely an online process that can be done in a couple of minutes. You will require your PAN card, Aadhaar card, bank details, and income proof (required in derivatives trading). Once checked, you will get your login details to get into the app and begin trading.
5. Fund Your Account and Start Trading.
Once activated, use UPI or net banking to transfer funds from your bank to your trading account. It is always advisable to begin with a small one before you get accustomed to the price movements. Monitor live prices, charts, and buy or sell orders using the best commodity trading apps. The global events can easily influence the commodities prices, and it is always advisable to have a well-considered strategy and read about what is happening in the market.
6. Track and Trademanage Your Portfolio.
In commodity trading, one must monitor on a regular basis. The best trading applications have, among others, the ability to view investment performances, price fluctuations in real-time, and price-adjustment messages. More often than not, reviewing your trades assists you in making better patterns, refining strategies and handling risks. Long-term success makes use of consistency and discipline.
7. Continue to learn and Stay Updated.
The global shifts in the supply-demand of commodities, weather changes, and some economic events make the commodity market evolve all the time. Get in the habit of learning to keep up. Majority of the trading sites provide free webinars, professional blogs and research articles to enable you make informed choices.
Conclusion
Online trading of commodities is now easy to start. Having the most popular commodity trading app in India such as Zerodha Kite, Angel One, Upstox, Groww, and ICICI Direct, you can trade easily, securely, and effectively. These applications put at your disposal real time data, research tools and smooth trading experience right on your smart phone.
Never forget though that trading in commodities is a risk and a reward. Begin small, keep learning and be prudent in your trades. Through patience, discipline, and the appropriate trading application, you will be able to make commodity trading a lucrative aspect of your investment experience.
