Uploaded on Aug 31, 2020
You might have ventured into stock market, mutual funds, real estate, and equities but commodities are also a focus for active traders. Now… what exactly is a commodity? A commodity is a raw material or agricultural produce that is cultivated. Crude oil and gold are some of the most common commodities that are traded. These commodities are traded and exchanged on cash markets or as standardized futures exchanges. Visit: https://www.ajmeraxchange.co.in/blogs/how-to-choose-best-commodity-broker-in-india
How to choose Best Commodity Broker in India
How to choose Best
Commodity Broker in
India
• You might have ventured into stock market, mutual funds, real estate, and equities but
commodities are also a focus for active traders. Now… what exactly is a commodity?
• A commodity is a raw material or agricultural produce that is cultivated. Crude oil and
gold are some of the most common commodities that are traded. These commodities are
traded and exchanged on cash markets or as standardized futures exchanges.
• The process of futures exchange can be a lot more complicated than the trading itself. Any
seasoned trader in the stock market would be able to get a hang of commodity trading
quickly but they might want to look out for commodity brokers in India.
• The commodities broker will simply sell and buy the futures contracts on behalf of their
client, in lieu of a commission or brokerage. An amateur commodity trader must hunt for
the best commodity broker so that they can have a comfortable journey in trading in the
commodities’ world.
Make a list
• Start off your hunt of a commodity broker in India by
making a list of all brokers available including all the ones
who do commodity trading online. Shortlist the brokers
based on their reviews on different platforms. Who knows,
you might find some material where someone has already
done research on the best commodity brokers!
Check History
• Once you have shortlisted, let`s say, top 5 commodity
brokers in India, you can start doing more in-depth
research on each organization or company. Check how
long they have been in the industry. Along with this, be on
the lookout for their regulatory history, the number of
clients they serve, what their portfolio and profits typically
look like. Keep on adding these details to your list of
commodity brokers in India so that you can evaluate and
choose by looking at the comparison right in front of you.
Choice of trading platform
• Now there are many new and efficient trading platforms
that can make one’s trading experience better. Online
commodity trading has become common in India too and
one can hunt and ask the brokers for what tools and
platforms they use to make your trading experience more
comfortable. An online platform with some level of
autonomy usually works very well for most people. We say
this often: check all out but choose only the best
commodity broker!
Know what you want
• While the above mentioned online platforms work well for the seasoned
trader, if the commodities world still seems fresh and daunting to you,
you might want the trader to assist. If you want to make this long-term,
you might want to have a managed portfolio. You can speak to different
people in your trading groups, people who have traded in commodities
before, and understand the pros and cons of each choice.
• Once you have done that, you would be able to make your goal crystal
clear and find the commodity broker in a much more streamlined
fashion, even in a vast country like India.
Check the brokerage
• Once you have ticked off the above checkpoints, you need to see if the best
commodity broker even fits in your budget or not! More often than not,
there are discounts and negotiations available with brokers. Some of them
offer discounts when there is a certain trading volume that one has
narrowed down to.
Call your shortlisted commodity brokers in India and discuss these discounts
and negotiations with them one on one. Since nobody wants to lose a
potential customer, you might be able to find the best broker within your
budget fit through this process!
Thank You
• Visit:
https://www.ajmeraxchange.co.in/blogs/how-to-choose-bes
t-commodity-broker-in-india
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