How to activate commodity segment on Zerodha

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This guide explains how to activate the commodity futures and options segment (MCX) on an existing Zerodha account, covering the income proof requirement, the structure of Zerodha’s commodity membership, and the distinct features of commodity trading compared to equity.

Step-by-step procedure

Step 1: Understand the commodity segment structure

Zerodha’s commodity segment operates through its SEBI-registered commodity broking entity, which holds membership of the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX). The Zerodha commodity segment overview describes the instruments available, including:

  • Metals: gold, silver, copper, aluminium, zinc, lead, nickel.
  • Energy: crude oil, natural gas.
  • Agricultural commodities: cotton, castor seed, kapas (listed on NCDEX; availability varies).

Commodity trading on MCX uses futures contracts, and options on commodity futures (options on MCX futures) are also available for select commodities (gold, silver, and crude oil).

Step 2: Log in to Console and navigate to Profile

Go to console.zerodha.com and log in using the Zerodha user ID and password. In the top navigation, click Account and select Profile. Scroll to the Segments section, which lists all current segments and their activation status.

Step 3: Click Activate next to MCX commodity

In the Segments section, locate the MCX Commodity row. If it shows “Inactive,” click the Activate button next to it. A screen with a brief explanation of the commodity segment activation requirement, including the income proof obligation and risk disclosure requirement, is shown.

Step 4: Upload income proof

Upload one of the following documents to satisfy the income proof requirement:

DocumentAccepted format
ITR acknowledgement (latest year)PDF (downloaded from the Income Tax e-Filing portal)
Form 16 (latest year)PDF or JPEG
Last 3 months’ salary slipsPDF or JPEG
Last 6 months’ bank statementPDF or JPEG; must show regular credits
Net worth certificateCA-certified; dated within 3 months

The uploaded document must show the account holder’s name matching the Zerodha account name. Certificates or statements in a company or family member name are not accepted for an individual account.

Step 5: Review the commodity risk disclosure

Before signing, Zerodha displays the commodity derivatives risk disclosure document. Commodity markets differ from equity markets in several key respects:

  • Physical delivery risk: Some commodity futures contracts (particularly MCX metals) have a physical delivery option near expiry. If a futures position is held into the delivery window without rolling over or squaring off, the holder may receive (on a long position) or be required to deliver (on a short position) the physical commodity. Zerodha squares off near-expiry commodity positions as a matter of policy to prevent physical delivery obligation, but traders should understand the mechanism.
  • Price limits: MCX imposes daily price limits (circuit filters). Trading halts if prices move beyond these limits, which can affect the ability to exit positions.
  • Leverage: Commodity futures require only a margin (typically 4-8% of contract value), providing substantial leverage. Losses can exceed the initial margin deposited.

Read the disclosure carefully. Acknowledging the disclosure is a SEBI requirement; it is not merely a formality.

Step 6: Sign the activation form via Aadhaar e-sign

After acknowledging the risk disclosure, proceed to the electronic signature step:

  1. Enter the 12-digit Aadhaar number.
  2. Click Request OTP.
  3. An OTP is sent to the Aadhaar-registered mobile number.
  4. Enter the OTP to authenticate and apply the e-sign to the commodity activation documents.

The e-sign process is the same as described in how to verify PAN and Aadhaar e-sign with Zerodha.

Step 7: Await activation and access MCX in Kite

After submission, commodity segment activation typically takes 1-2 business days. Processing is done by Zerodha’s back-office team, which cross-references the income proof with the account records and completes the MCX exchange-level registration.

Zerodha sends an email confirmation when the MCX segment is active. In Kite (kite-zerodha), MCX instruments become searchable. Search for “GOLD23AUGFUT” or any MCX contract to confirm visibility. If MCX instruments do not appear after the confirmation email, log out of Kite and log back in.

The commodity segment uses the same Kite interface as equity but shows the MCX client ID in the order confirmation screens. Statements and contract notes for commodity trades are available separately under Console > Reports > Commodity.

References

  1. SEBI Circular on income proof for commodity derivatives (SEBI/HO/CDMRD/DNPMP/CIR/P/2019/15, 21 March 2019).
  2. MCX Membership and trading regulations (mcxindia.com, accessed May 2026).
  3. Zerodha commodity segment information: zerodha.com/commodities (accessed May 2026).
  4. SEBI (Commodity Derivatives) Regulations, 2018.
  5. FMC (now merged with SEBI) guidelines on commodity client registration (revised under SEBI post-merger 2015).

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