How to enable Commodity Segment in Zerodha? Activate Account
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- Updated On:22-Oct-2020
- Replies:5
Short Answer
You want to enable commodity segment in Zerodha, but wondering how it's done. Here we'll discuss ways to activate the commodity segment in your Zerodha account and open a new Commodity account with the leading discount broker in India.
Detailed Answer
Trading commodities with Zerodha has been on an exponential rise due to its high-quality customer service and cheap trading costs. However, to open a commodity trading account with Zerodha you either have to be an existing trader with the company or also be willing to open a trading+demat account.
At present, Zerodha does not allow to open only the commodity trading accounts. This means you must also open a trading and demat account with the broker for enabling the commodity account.
Zerodha New Account Opening
If you are opening a new Trading and Demat account with Zerodha then you can simply follow the account opening process as given above. While filling the details and applying for the Equity account, you'll be prompted to selected the type of account you wish to open. So, you can tick the \Commodity\ there itself. When all the account opening formailties are complete, you'll be alloted a new Equity+ Commodity account for trading in equities as well as commodities.
There's an extra fee of Rs.100 for ticking the commodity account option in addition to the trading and demat account opening fee of Rs.200 only.
Existing Zerodha Account holders
If you already have a Trading and Demat account with Zerodha, this is how you can activate \Commodity\ as well:
1. If Your Mobile Number is linked to Aadhar
If you already have a Zerodha trading account with your mobile number linked as well, you need to link your Aadhar card with your mobile number for the E-signing process. Follow the given steps:
Step1: Find the 'segment activation' section of your Zerodha dashboard.
Step2: Select the 'Commodity segment' and click on proceed.
Step3: Select your gross income and trading experience (in years) and then click on 'choose file'.
Step4: You can provide any of the following documents for income proof
1.Bank account statement for the past 6 months.
2.Your latest salary slip.
3.Copy of ITR acknowledgment.
4.In case of salary income- a copy of form 16
5.Certificate of Net worth
5.Demat statement
Step5: The process is complete.
2. If Your Mobile Number is not linked to Aadhar
In this case, you have to fill up an offline form called 'Commodity trading form' available on the Zerodha website. Follow these steps to get it done:
Step1: Print the offline form from the website
Step2: Fill the form and sign it.
Step3: Attach an income proof with it from the options given above.
Step4: Send the documents to this address-
Zerodha HO [#153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase, Bangalore - 560078]
Step 5: You will be charged Rs.200 for the offline process and the segment will be activated within 48 hours of the documents reaching the company office.
So, that's how you can activate commodity segment in Zerodha in an easy manner.
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Discussion (4)
The only downside of activating the Commodities segment in Zerodha is that one will have to maintain 2 separate account balances, One for the Equity & Derivatives Segment and another for the Commodity Segment. In this way, traders can face a Margin Call for not keeping both of their Segments funded adequately and it makes the work of tracking the total Funds even harder.
Commodity trading is very different from equity trading. You would need to open another account where all the procedures can be found on Zerodha's website. Do note that you would be charged at least 200 rupees for the process while the waiting time is 48 hours.
The process is very simple. Commodities trading is different from equity trading. One needs to open a separate account in the commodities section just like the way of opening an equity account. Customer care can also be reached whenever required.
Commodities are a separate segment that you have to get activated in Zerodha in order to trade in them. Once you submit some basic documents such as your income proof or salary slip, it will get activated. After that, you can buy or sell any commodity on Zerodha.
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Rishika Agarwal
It I quite an easy procedure and is very well explained in this blog above. I am now well informed about all the information. For commodities segment, an individual needs to maintain balance in two accounts and also equity and commodity trading are quite different in nature and an amount will be charged as per the waiting time.