Zerodha is now allowing users to trade commodities using their existing equity account balance. Previously, users needed separate accounts for equity and commodity trading, but now this issue has been resolved.
In a post on social media platform X, Zerodha CEO Nithin Kamath said, “Now, you can trade commodities using the same equity account balance without maintaining a separate commodity account. This was a legacy issue that took us a long time to address.”
Kamath further highlighted that with Zerodha Broking as the main membership, users can now trade both equities and commodities. Additionally, customers trading commodities can switch to Zerodha Broking.
Advertisement
As part of this change, Zerodha is also giving up Zerodha Commodities Pvt Ltd license on inactive exchanges like NSE, allowing clients to trade NSE commodities using their existing equity accounts.
What’s New?
Zerodha users can now trade both equities and commodities under a single account with Zerodha Broking Ltd. This means you no longer need to maintain separate balances for different trading activities.
Activation Process
For New Commodity Traders
If you’re new to trading commodities, you’ll need to activate the commodity segment and a new commodity account will be set up under Zerodha Broking Ltd.
For Existing Commodity Traders
If you have an existing commodity account, activate the commodity segment from the Console, which will deactivate your current account and open a new one under Zerodha Broking Ltd., but make sure all open MCX positions are closed.
Steps to Activate the Commodity Segment
Step 1: Open the Kite App.
Step 2: Tap on your User ID and go to Profile.
Step 3: Choose ‘Commodity’ and click on Continue.
Also Read: New Asset Class Between Mutual Funds and PMS! What is SEBI’s Latest Proposal for Investors?
Step 4: Enter your gross income, trading experience, and commodity trade classification. Then upload proof of income or select your holdings statement.
Step 5: Select mobile or email for OTP, tap on the undertaking, and enter the OTP to verify.
After completing these steps your commodity segment will be activated within 72 hours. This update aims to simplify the trading process, making it easier for Zerodha users to diversify their investments without the hassle of managing multiple accounts.
Want to learn the art and science of managing your money? The 1% Club can help. Details here
Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing.
