Wisdom Capital: Commodity Trading: Brokerage, Charges, Reviews: 2021

Wisdom Capital is an evolving discount stockbroker in India that has a record of good performance in the discount brokerage service for currency, commodities, futures and options, stocks on NSE, BSE, MCX and NCDEX. 

As per the Industry standards, the services offered via some of the best platforms and technologies include Portfolio Management, SEBI Authorized Portfolio Advisory, Free Demat and Best Terminal etc.  

What is Commodity Trading?

Given the present situation, amidst the dominance of the stock market, commodity trading in India has been escalating constantly and has gained a lot of importance over the most recent decade. However, substances like food grains and metals are also traded in the stock market and are known to be commodities. Trading in commodities is generally done through future contracts. 

The commodities, consisting of agricultural products (wheat, rice, corn, cotton, coffee and sugar), energies (natural gas, gasoline,crude oil) and metals (gold, platinum, silver) are offered and bought for a financial income and hence is called commodity trading. 

Commodity trading market provides the platform where we can trade in commodities. In India commodity trading is mainly done through different exchanges by the online commodity trading firms. The most distinguished exchanges in India where commodity trading take place are National Multi Commodity Exchange of India (NMCE) deals in trading spices, Multi Commodity Exchange (MCX) primarily deals in metals like copper, silver, gold, gas, coal,etc. and National Commodity & Derivative Exchange (NCDEX) allowing trading in grains like sugar, cotton, wheat, rice, etc. 

Wisdom Capital provides precious metal futures through its trading platforms. Investors can invest in these commodities and they can also trade in almost all agri and non-agri, metals commodities flawlessly. 

Wisdom Capital in Commodity Trading: Benefits

As an online commodity trading facilitator Wisdom Capital offers various benefits which are:

1. Diversification of portfolio 2. Protecting against inflation 3. Hedging Against Risk 4. Offering very high liquidity 5. Trading even on lower margin 6. High returns 7. Easy trading facility 8. Preserve speculations at fingertips 9. Automatic commodity buying and selling.

Wisdom Capital Commodity Future and Option Brokerage

  1. Securities Transactions Tax (SST) in Commodity Futures is 0.01% on sell side (Non-Agri) and in Commodity Option is 0.05% on sell side.
  2. Transaction or Turnover charges are 0.0025% for both Futures and Options.
  3. Goods and Services Tax (GST) is 18% on (Brokerage + Transaction Charge)
  4. SEBI Charges is 0.00005% (₹5/Crore)
  5. Stamp Charges will be charged as state-wise. 

How Commodity Trading Is Done Through Wisdom Capital?

Intraday:

The leverage offered by Wisdom capital in commodity Intraday follows as:

As per the brokerage plan selected by the customer, Wisdom Capital offers up to 10 times leverage (or higher based on brokerage plan selected) in commodity future and option writing. To avail the stipulated leverage you need to place orders with the product type as MIS.

Additionally, Wisdom Capital offers leverage up to 14 times in BO/CO type (or higher based on brokerage plan selected) only in Futures. 

Carry Forward:

The leverage offered by Wisdom Capital in commodity carry forward follows as:

According to the exchange’s guideline, the initial margin or span margin including exposure margin will be required to carry the position till the expiry day or to take the overnight position. As per the exchange, you need to maintain the stipulated margin on a daily basis, through this you can avoid penalties for the shortfall. You need to place orders in the product type NRLM

Investors should have appropriate knowledge about the trading market to make effective and money-making commodity trading. To get better techniques and information and to make handsome profits in the market, investors can get the guidance from the online commodity firms and Wisdom Capital is one of them.

Wisdom Capital Commodity F&O Brokerage: 2021

ChargeCommodity FuturesCommodity Options
Brokerage
Securities Transaction Tax (STT)0.01% on sell side (Non-Agri)0.05% on sell side
Transaction / Turnover Charges0.0025%0.0025%
Goods and Services Tax (GST)18% on (Brokerage + Transaction Charge)18% on (Brokerage + Transaction Charge)
SEBI Charges0.00005% (₹5/Crore)0.00005% (₹5/Crore)
Stamp ChargesState-wiseState-wise