THE LATEST OPEN COMMODITY TRADING ACCOUNT HAS FINALLY REVEALED

Commodities have always been an essential part of people’s life. It has been many decades since commodity trading came into existence. The demand for commodity trading is increasing by leaps and bounds over time and all thanks to the modification in the mechanism of dealing with commodities. Yes, you read it right! Gone are the days when commodities were sold in the form of tangible goods, but the case isn’t true in today’s advanced world where technology is on the rise. Instead of the actual delivery of the commodities, they are purchased and traded through online portals. Doesn’t it make it easier and convenient for buyers to purchase as many numbers of shares they want without having to hire a broker? Of course, it has turned the overall stock trading mechanism effortless. And perhaps, this is the reason why the number of people registering in these online stocking trading platforms is rising day by day.

Now that the buying and selling of the shares are taking place online, the profit and loss account of the traders is also prepared online. Now how exactly does this online trading mechanism work? Basically, the open commodity trading account is introduced in the online stock market to assist traders who are willing to buy and sell shares through online platforms. Here’s all that you must know about the open commodity trading account:

Open Commodity Trading Account Online

As the commodities are now sold online, the very first step every trader needs to follow is: create your online commodity trading account. If you have been into online stock dealing, you would have heard about the commodity trading account, haven’t you? Well, the stock traders open a commodity trading account either with a certified stockbroker of a famous organization or a financial institution. The good news is opening the commodity trading account isn’t rocket science. Here’s all that you need to consider creating your commodity trading account.

Choose Stockbroker

Although you could also open your commodity trading account with the bank, it is advisable to open it with a reputable broking company as they offer you better features than a financial institution. However, selecting a broking company isn’t that easy how it looks. Wondering why? There is an array of stockbroking agencies established in the market, each company having a set of benefits and drawbacks. With such a massive number of stock trading companies out there, selecting an ideal firm who could manage your accounts accurately and carry out your trading activities with efficiency can be a challenging task, especially if you are a beginner in this realm.

The role of a broker is to educate stock traders on online commodity trading and financial reports preparation. Imagine you have settled with an inexperienced broker company (just to save some bucks), but have you ever thought how is he going to provide you with an in-depth education on online stock trading if he himself isn’t a customer-savvy and lacks proper knowledge?

Create Your Online Commodity Trading Account on Your Own

As soon as you’ve selected the suitable broking company, the next step is to fill the online commodity trading application form with the respective broking company you’ve opted for. The form asks for your basic information such as your age, trading experience, financial status. Aside from your personal details, you have to submit vital documents including your ID proof (PAN Card, Passport, Driving License, and etc).

The broking company will thoroughly examine your documents and grant you your own commodity trading account only if the details and documents are valid and submitted appropriately. Basically, you’ll get to know the decision of the broking company within few hours or same day.

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It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

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