How to Invest In Commodities in India?

What do I need to start trading in commodity futures?

For trading in commodity future, you will need one bank account. Besides, You would need to open a separate commodity demat account from the National Securities Depository to trade on the NCDEX just as you do for stocks.

What are the other requirements at broker level?

At the broker level, the formality which you need to fulfill is, entering into a normal account agreements with your broker. This includes the procedure of submitting the Know Your Client document providing your personal details as per the format that exist in equity trading and terms of conditions of the exchanges and broker. Besides this, you would be also asked to provide additional details such as PAN no., bank account no, etc.

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Where do I look for information on commodities?

For keeping a market check, vigilant investors usually look for information about price fluctuation in the Daily financial newspapers which carries spot prices and relevant news and articles on most commodities. Besides, there are specialised Financial and Business magazines on agricultural commodities and metals available for subscription. Brokers also provide research and analysis support.

However, one can grab all these information easily from websites. Though many websites are subscription-based, a few also offer information for free. You can surf the web and narrow down you search.

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