July 18, 2024
New Delhi, India
Zerodha
Zerodha, India’s leading brokerage firm, has announced a major update that allows users to trade commodities using their existing equity accounts. This move eliminates the need for separate commodity accounts, simplifying the trading experience for Zerodha clients.
Seamless Trading Experience:
Previously, Zerodha clients had to maintain separate accounts for equity and commodity trading, with equity accounts managed under Zerodha Broking Ltd and commodity accounts under Zerodha Commodities Ltd. This required separate fund deposits for each account. The new update, announced by CEO Nithin Kamath on X (formerly Twitter) on July 17, resolves this issue.
Nithin Kamath’s Announcement:
Kamath highlighted the significance of this update, calling it a “legacy issue” that took considerable time to address. “Now, you can trade commodities using the same equity account balance without maintaining a separate commodity account,” Kamath posted. This change comes as part of Zerodha’s efforts to enhance user experience and streamline operations.
Primary Membership Under Zerodha Broking:
With Zerodha Broking as the primary membership, users can now trade in both equity and commodity segments seamlessly. This update allows customers to transition to Zerodha Broking, even if they were previously trading commodities separately.
Surrendering Commodity License:
As part of the update, Zerodha is surrendering its Zerodha Commodities Pvt Ltd license on exchanges where it was not active, such as the NSE. Clients can now trade NSE commodities using their equity account balance.
Activating the Commodity Segment:
For clients who have not yet opened a commodity account with Zerodha, they can activate the commodity segment via the Console. Existing commodity account holders need to close their MCX positions before deactivating their current account and opening a new one under Zerodha Broking Ltd. The process involves a few simple steps through the Kite app, including income verification and segment activation.
Steps to Activate Commodity Segment:
- Open the Kite app and go to Profile.
- Select Segments and then ‘Commodity’ and click on Continue.
- Provide gross income, trading experience, and commodity trade classification details.
- Upload income proof or select holdings statement.
- Complete OTP verification.
- The commodity segment will be activated within 72 hours.
Conclusion: Zerodha’s latest update simplifies the trading process by allowing users to trade commodities using their existing equity accounts. This enhancement reflects Zerodha’s commitment to improving user experience and operational efficiency.
Currency Market Update July 18, 2024
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