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Which is the best commodity broker?
ICICI Direct (₹20/trade) Angel Broking (₹20/trade) Edelweiss (₹10/trade) IIFL Securities (₹20/trade) Aliceblue (₹20/trade) More Brokers……Full-Service Vs Discount Commodity Brokers.
| Subject | Full-service Broker | Discount Broker |
|---|---|---|
| Brokerage | High (Usually in % of the transaction) | Low (flat fee per trade) |
Who controls the commodity market?
The Forward Markets Commission (FMC) was the chief regulator of commodity futures markets in India. As of July 2014, it regulated Rs 17 trillion worth of commodity trades in India. It is headquartered in Mumbai and this financial regulatory agency is overseen by the Ministry of Finance.
Who are the participants in commodity futures market?
Key participants in the commodity futures market
- Commodity market speculators. Speculators are there in the market for a very short period of time.
- Directional Margin Traders.
- Spot / Futures Arbitrageurs.
- Commodity price hedgers.
How much commission does a commodity broker make?
Your commodity broker gets paid a percentage of the commissions charged to clients. Often, the clearing fee is subtracted right off the top of their payout. So, if you expect to get a $30 commission rate from your broker, the broker is likely earning less than $10 per trade.
What do commodity brokers do?
A commodity broker is a firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission. Commodity contracts include futures, options, and similar financial derivatives.
Where are commodities traded?
Generally speaking, commodities trade either in spot markets or derivatives markets. Spot markets are also referred to as “physical markets” or “cash markets” where buyers and sellers exchange physical commodities for immediate delivery. Derivatives markets involve forwards, futures, and options.
How do commodity markets work?
Commodity trading is the exchange of different assets, typically futures contracts, that are based on the price of an underlying physical commodity. With the buying or selling of these futures contracts, investors make bets on the expected future value of a given commodity.
Who are the participants in commodity derivatives trading?
There are four kinds of participants in a derivatives market: hedgers, speculators, arbitrageurs, and margin traders.
Who are the commodity market intermediaries?
Intermediaries defined in the Commodity Exchange Act and Commission regulations include:
- Commodity Pool Operator (CPO)
- Commodity Trading Advisor (CTA)
- Futures Commission Merchant (FCM)
- Introducing Broker (IB)
- Major Swap Participant (MSP)
- Swap Dealer (SD)
What is a commodity contract broker?
How do commodity brokers work?
Buys and sells physical commodities, trading on behalf of product producers and buyers. Commodity brokers buy and sell physical commodities (crude oil, grain, metals, coffee, sugar) on a commission basis on behalf of private and commercial clients.