In order to begin trading in commodities in India, you will first need
to have your own commodity trading account.
If you have been doing any research into this matter, you will no doubt
discovered that there are literally thousands of companies offering commodity
trading services in India. Any one of
these should be able to open a commodity trading account on your behalf. Many will also offer to open a demat account
for you at the same time. The fees for
this service will vary depending on which commodity trading broker in India you
choose to deal with. Some will offer the
account openings completely free of charge.
WHAT IS THE
DIFFERENCE BETWEEN A COMMODITY TRADING ACCOUNT AND A DEMAT ACCOUNT?
A demat
account is where electronic records of any shares in companies that belong to
you are held. These are called
equities. The demat account acts like a
digital locker for keeping these safe and secure without the need for physical
paperwork. If you already have a demat
account, you can theoretically configure it in such a way that you can begin
trading in commodities and equities in that very same account. However, if you never intend to trade in
equities, you do not strictly need to have a demat account, as a simple trading
account will be adequate for that.
HOW TO OPEN A COMMODITY TRADING
ACCOUNT IN INDIA?
Once you
have selected which commodity trading company in India you wish to use as your
broker, you can ask them to set up a commodity trading account for you. Choosing the correct broker for yourself will
depend on many factors, not least their charges and fees. While some may charge a fee for opening an
account but then proceed to charge you a maintenance fee each month, others
will charge for opening the account but not charge a maintenance fee. Others still may charge both, or neither of
these fees. Some may simply charge on a
‘per trade’ basis, meaning that if you do don’t make any trades, you do not pay
anything. However this may not be a good
thing if you are planning on making a lot of trades. Speak to the brokers about available price
plans and agree on what suits you the best.
Nowadays most traders have an online form that you can fill out from
the comfort of your chair without having to visit the branch in person. After the submitted form is received by the
broker, the regulators mandate that he must use the information provided in the
form to assess the potential trader in regards to his personal experience,
appetite for risk, and current financial position. The broker should be satisfied that the
applicant will be able to survive financially even if he loses all that he
invests. Some documents will also need
to be seen by the broker. https://www.500percrore.in/trading-account-format.php
WHAT DOCUMENTS ARE REQUIRED TO OPEN A
TRADING ACCOUNT IN INDIA?
Before the
account can be opened, your identity must be verified by the submission of
several documents. These could be
provided in person at the branch where the broker can take Xerox copies. Alternatively, some brokers allow scans of
the documents to be uploaded via their website or attached to an email. Failing that, you may produce Xerox copies
yourself and post them to the branch. The documents required will comprise of
one photo ID proof (this should be your PAN card, as a PAN card is a prerequisite
for anyone wishing to open a trading account), and one address proof (for this
you could use an Electricity bill, Voter Id Card, Ration Card, Flat Maintenance
bill, Telephone bill, Bank Passbook, Registered Lease or Sale Agreement for
Residence, Bank statement not more than 3 months old, Driving License,
Insurance copy or a Passport). The
names, addresses and date of birth if shown on any of the documents must
exactly match the details entered into the application form. As you can see
from the above information, you should not be daunted about opening a trading
account in India, as the process is really very simple. visit: https://www.500percrore.in/