5paisa: Commodity Trading: Brokerage, Charges, Reviews: 2022

5paisa Capital Ltd. is a new age company that believes in making the entire process of getting started with trading as simple as possible, offering account opening in three simple steps. One of the leading stockbrokers in India, 5paisa Capital Ltd is publicly-traded, and managed by IIFL founders. This provides the company with valuable experience in the financial markets coupled with its expertise in simplifying the trading experience has enabled it to offer best-in-class services at an extremely low cost.

5Paisa: Commodity Trading

5paisa Capital Ltd was given membership with MCX in January 2018, which enabled the broker to provide a commodity trading platform to customers. 5Paisa started commodity services in March 2019, about an year of upgradation of its platform for the service.

Using 5Paisa, you can trade in commodity derivatives through an all-in-one account, which encompasses equity, debt as well as derivative trading. Thus, in case of 5paisa, you don’t require to open a separate commodity trading account, in case you already have a demat and trading account with the broker. You just need to activate the MCX segment services for online commodity trading through 5Paisa.

In commodity segment, Futures & Options are the instruments to trade in. Through 5paisa, you can trade in various commodities such as Gold, Silver, Zinc, Copper, Crude oil, and others. Along with providing a single account for all the trading needs, 5Paisa offers a flat brokerage of Rs. 20 per order, providing a low cost brokerage experience. But, while being cost-effective, their services are sophisticated, allowing commodity trading across all platforms including the mobile application, website and downloadable trading software. This means you face no additional charges and a flat brokerage fee, with no additional account opening charges as well.

5paisa Commodity Trading: Types of Order

Using 5Paisa, you can place orders with product codes MIS and NRML orders in commodities. However, the discount broker as of now doesn’t facilitate bracket order and cover order in the MCX segment.

5paisa Commodity: Trading Margin Details

Using 5Paisa, one can trade only in commodity derivatives for the current months only, while generally, there are options to trade in current, near, and next month derivative commodity contracts. In terms of exposure, the broker provides 2x for intraday futures contracts, for both current and near month period. However, the margin exposure provided for delivery futures and options contract is 1x only.

5paisa Commodity Trading: Procedure

The 5paisa commodity trading is a simple process, as explained below;

1.Allocation of funds: Initially, one requires to allocate required money to the trading account according to the margin requirements depending on type of orders, otherwise you can’t place orders to trade in commodities.

2.Order placement: After making sure you have necessary funds, one can place a buy order through either of the platforms/portals.

3.Settlement: There is no physical delivery of commodities, therefore, the settlement will only be based on contract expiry which will be reflected in your account based on T+1 day.