Best Commodity Trading Platform in India

Commodity trading has attracted speculators and investors for hundreds of years. Those trading metals, oil, and soft commodities such as coffee and cotton can make (or lose) money buying and selling relatively tangible assets. In-depth research techniques using fundamental analysis and technical analysis can help, but many in the market also incorporate gut instinct or industry knowledge about a precious resource and whether it is due a change in price.

The situation has moved on from merchants doing direct trades with each other, and modern online brokerage platforms allow anyone to access the markets and put on a position. Getting a trading decision right is always open to market risk and the chance that price might move in the wrong direction, but one risk that can be managed is operational risk. This relates to your choice of broker platform and can be more important than whether to buy or sell gold, oil, copper or soya beans. If you sign up with a scam broker, you can lose all your money overnight. This review of the best commodity trading platforms in India will outline the pros and cons of each and forms a shortlist of well-regarded brokers that are worth trying out.

7 Best Commodity Trading Platforms in India

FXTM
Tickmill
BlackBull Markets
IQ Option
OctaFX
FBS
GKFX

#1FXTM

Trader Rating

Take a Look

What We Liked:

Great regulatory framework operating under licence from Tier-1 regulators
A global client base, with the platform being home to more than 2 million traders
Trade commodities including oil, gas, gold and silver
Very strong in user education and trade research and analysis materials
MetaTrader’s ever-popular MT4 platform and MT5 platform coming soon
Track record of adding neat new features such as FXTM Invest aimed at helping traders improve their returns
Free demo account
Multilingual customer support available in 18 languages
Great entry-level services – the Cent Account has a minimum opening balance of $10
ECN-grade trading available for balances above $/€/£500
Sharia-compliant Islamic accounts are available

The FXTM trading platform is all about giving traders just what they want. The Cent Account helps FXTM stand out from the crowd as it has a super-low $10 minimum balance requirement, which is ideal for beginners. All standards of traders are catered for, with the broker offering competitive pricing and market-leading trading infrastructure, which has proved popular with novice and experienced traders alike.

ForexTime (www.forextime.com/uk) is authorised and regulated by the Financial Conduct Authority with licence number 777911.

Exinity Limited (www.forextime.com) is regulated by the Financial Services Commission of the Republic of Mauritius with an Investment Dealer Licence bearing licence number C113012295.

(Source: FXTM)

#2Tickmill

Trader Rating

What We Liked:

Some of the lowest-cost trading in the market
Leverage up to 1:500
Available in more than 200 countries, including India
A choice of market-leading trading platforms: MT4, MT5 and WebTrader
Trade commodities including Brent and WTI oil futures, and gold and silver
Ultra-fast trade execution speeds – average trading speed for metals is 0.20s
Additional trading tools to help you identify trade entry and exit points
Innovative features to enhance and support the trading experience
Transparent reporting of T&Cs
Supports a wide range of strategies, including scalping, hedging and automated trading
Minimum opening balance of $/€/£100
Sharia-compliant Islamic accounts are available

Tickmill is a mid-sized broker that focuses on providing a high-quality service to its clients. It supports traders around the world, including India, and is favoured by those looking for cost-effective and reliable trading conditions.

Tickmill Asia Ltd – regulated by the Financial Services Authority of Labuan Malaysia (Licence Number: MB/18/0028 and Registered Office: Unit B, Lot 49, 1st Floor, Block F, Lazenda Warehouse 3, Jalan Ranca-Ranca, 87000 F.T. Labuan, Malaysia).

Tickmill UK Ltd is authorised and regulated by the FCA and is registered with number 717270.

Registered Office: 3rd Floor, 27-32 Old Jewry, London EC2R 8DQ, England.

(Source: Tickmill)

#3BlackBull Markets

Trader Rating

What We Liked:

Fintech background ensures that the platform has all the latest technical features
Trade commodities including oil, gas, gold and silver
Super-tight trading spreads start at 0.0 pips
Trade using leverage as high as 1:500
Market-leading, high-tech trading architecture ensures low-cost and reliable trade execution
Online learning tools such as webinars are ideal for beginners
Sharia-compliant Islamic accounts are available

BlackBull Markets is a New Zealand-based, new-entrant broker that is making waves in the broker sector. Set up by traders who spotted a gap in the market, the strong tech background of the management team has resulted in them creating a platform that is market leading in terms of operational functionality. Add to that the competitive pricing and strong regulatory structure, and it’s easy to see why the broker is attracting new clients.

BBG Limited is incorporated and regulated by the Financial Services Authority (FSA) of Seychelles.

“Black Bull Group Limited (trading name: BlackBull Markets) is a company registered and incorporated in New Zealand (NZBN 9429041417799).

Located at Level 22, 120 Albert Street, Auckland 1010. Black Bull Group Limited is a registered Financial Services Provider (FSP403326) and holds a Derivative Issuer Licence issued by the Financial Markets Authority.”

(Source: Black Bull Markets)

#4IQ Option

Trader Rating

Take a Look

What We Liked

Over 17 million registered users
User-friendly platform with an attractive aesthetic
Trade commodities including oil, gas, gold and silver
Neat research tools in place to help trader performance
Multilingual support staff available 24/7
Transparent reporting of T&Cs
Lots of educational tools that break down trading terms into easy-to-understand language
Low minimum deposit and easy account opening process
Sharia-compliant Islamic accounts are available

IQ Option has set out to make accessing the commodity markets easy to do. The broker has grown its market share in a very short period of time thanks to making the onboarding process fast and straightforward. Once on the trading platform, the neat functionality allows users to draw on expert advice and book trades from desktop or mobile devices. The 24/7 customer support is another nice-to-have feature that will be appreciated by both novice and experienced traders.

Headquarters: Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus.

IQ Option Europe Ltd. holds Licence No. 247/14, issued by the Cyprus Securities and Exchange Commission, an independent public oversight agency responsible for regulating the investment services market in Cyprus.

#5OctaFX

Trader Rating

What We Liked

Multi-award-winning broker with a long history of supporting Indian traders
Some of the lowest-cost trading in the market
Leverage up to 1:200 in the metals markets
Trustworthy and reliable with a track record of successfully supporting traders in India
MetaTrader 4 and 5 available
High priority given to trader education services and market analysis tools
Super-fast trade execution speeds
No commission charges on deposits and withdrawals
Sharia-compliant Islamic accounts are available

OctaFX was one of the first offshore brokers to take the India market seriously. Its T&Cs are designed to help Indian traders access the global financial markets, and it has a strong track record in the commodity markets.

Octa Markets Incorporated is based at Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, Saint Vincent and the Grenadines. OctaFX is licensed and regulated by FSA SVG licence number #19776 IBC 2011.

OctaFX.eu, run by Octa Markets Cyprus Ltd, is CySEC regulated (licence number: 372/18 at Cyprus Securities and Exchange Commission).

#6FBS

Trader Rating

What We Liked

Popular and easy-to-use trading platform
24/7 customer support
Trade commodities including oil, gas, gold and silver
Leverage up to 1:500
Choose from MetaTrader 4, MetaTrader 5, and proprietary FBS Trader platforms
Beginner-friendly Cent Account has a minimum opening balance of $10
Market analysis and research services include in-house TV channel
Video tutorials, guidebooks and webinars to develop trading skills
Super-fast trade execution speeds
No commission charges on deposits and withdrawals
Sharia-compliant Islamic accounts are available

FBS has been operating for more than 10 years and has in that time built up a loyal customer base of more than 13 million account holders. Those who try the service appear to like it, and more than 80% asked said that they wouldn’t consider moving to another platform.

FBS is owned and operated by Tradestone Limited (address: 89, Vasileos Georgiou Street, 1st Floor, Office 101, Potamos Germasogeias, 4048 Limassol, Cyprus), registration number HE 353534, authorised by Cyprus Securities and Exchange Commission, licence number 331/17.

(Source: FBS)

#7GKFX

Trader Rating

What We Liked

Lightning-fast trade execution thanks to a network of super-powerful servers
Competitive spreads – some of the lowest-cost trading around
Much-loved third-party research tools Autochartist and Trading Central are available
Dedicated account managers
Provides ‘Week Ahead’ videos and daily updates on the market
24/5 customer support
Trade commodities including oil, gas, gold and silver
MetaTrader 4, MetaTrader 5 and WebTrader platforms are available and VPS trading supported
Sharia-compliant Islamic accounts are available

GKFX is a fast-growing and well-regulated broker offering fast and cost-effective access to the commodity markets. The additional research services provided by Autochartist and Trading Central are ideal for those who want to develop their understanding of how to spot trade entry and exit points.

“GKFX is the registered trademark of AKFX Financial Services Limited, which is ultimately subject to the same ownership and control of other businesses forming part of the Global Kapital Group.

AKFX Financial Services Ltd, bearing company registration number C60473, is licensed in terms of the Investment Services Act Chapter 370 of the Laws of Malta. with a Category 2 licence and is regulated by the Malta Financial Services Authority (“MFSA”) (license number IS60473).”

(Source: GKFX)

Why Do Brokers Apply to Be Regulated?

Almost all countries with developed systems of commodity trading apply some kind of regulation to the commodity markets. This means that trading in the instruments involved comes under a list or rules and regulations of regulatory bodies such as the SEC in the US or SEBI in India.

Commodity markets don’t tend to be as well-regulated as the equity markets, but there are moves towards making the markets safer for users. India’s capital market regulator, the Securities and Exchange Board of India (SEBI), is in the process of implementing a stricter regulatory framework for the trading of digital gold.

It’s important to keep in mind that regulation comes in two forms: regulation of the market (for example, the exchange on which oil is traded) and more general cover provided to account holders regardless of what market they are trading.

There is a need for account holders to check what cover applies to them, but reputable brokers see client protection as a potential selling point, so they take the matter seriously. Protecting clients is part of a successful business model that is designed to deliver an attractive and secure service.

Investors and traders who use a broker that is regulated by SEBI or any other regulators should look for these features:

Complaints procedures – being licensed requires brokers to have in place formal complaints procedures, and if the broker can’t resolve an issue, it’s possible to escalate it with the regulator.
Cash deposit protection schemes.
Negative balance protection – not being able to lose more than your initial stake.
Segregation of client funds – if the broker goes bust, your money is safe as it’s held in an independent account.
Risk warnings – brokers are required to offer information on the risks associated with trading.

The list of what the regulator demands of brokers operating under licence extends far beyond the above items, but it does depend on where you live and what regulator is enforcing the rules. Additional protections to look out for include Order Execution Policies, Pillar 3 disclosures, Anti-Money Laundering rules, Privacy Policies, and much, much more.

The process of gaining regulatory approval and satisfying ongoing reporting requirements is costly. As a result, any broker that opts to be regulated is demonstrating that it is a legitimate operation with a long-term business plan.

If the carrot associated with being regulated is that you can attract more customers, the stick is that the regulator can take action against brokers that don’t comply with the rules. Firms can be cautioned, or even struck off from being licensed if they transgress.

Final Thoughts

The big no-no for anyone looking to trade commodities is falling into the trap of using an unregulated scam broker. The broker may promise unbelievable returns but needs to be avoided. Considering the time, effort and expense that good brokers put into being regulated, there’s little benefit in choosing a broker that isn’t on a list of trusted brokers, such as the one provided above.