How-to zerodha commodity account mcx segment commodity trading

How to Open a Zerodha Commodity (MCX) Account

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This guide enables the commodity segment, the MCX leg, on a Zerodha account. It is written for a reader who already holds or is opening a Zerodha trading and demat account and wants to add gold, silver, crude oil, and the other Multi Commodity Exchange contracts to the same login. The commodity segment is a derivatives segment, so it carries an income-proof gate that the cash-equity account does not.

There is no such thing as a standalone Zerodha commodity account. Commodity activation rides on top of an equity trading and demat account, the same way the F&O segment and the currency segment do. If you do not yet have an account, you open the trading and demat account first, then add the commodity segment; the two acts are covered separately here. The conceptual background to what you are trading sits at commodity trading and the Zerodha-specific cost detail at Zerodha commodity brokerage .

Step-by-step procedure

The procedure infobox above lists the six steps in order; each step is expanded below with the exact Console labels and the error cases. The whole flow runs through Console , Zerodha’s back-office portal, not through the Kite trading app.

1. Open the underlying trading and demat account

Commodity trading needs a trading account to route orders to MCX and a demat account to hold any physically settled positions. If you are starting from scratch, complete the standard account opening first, which is free for resident individuals since 29 June 2024. An existing client skips this step entirely and goes straight to Console.

2. Log in to Console and open Segments

Log in to Console, click on Account, then on Segments. This screen lists every segment, equity, F&O, currency, and commodity, with its current status. The commodity segment-addition flow lives here, distinct from the Kite order window where you will later place MCX trades.

3. Select Commodity and continue

Click on Commodity, then on Continue, then choose whether the one-time password reaches you by email or SMS. Online activation is available to resident individuals whose mobile is Aadhaar-linked. A non-individual, NRI , joint, or minor account will see the online path blocked and must use the offline form described below.

4. Pick income range and commodity trading classification

Select your income range, your trading experience, and the commodity trading classification. The classification is an MCX requirement with three options: Farmer or FPO for farmers, cooperatives, and Farmer Producer Organisations; Value Chain Participant for a processor, miller, importer, exporter, physical-market trader, or stockist; and Others for everyone trading MCX who fits neither. A retail speculator or hedger with no physical-commodity business selects Others.

5. Upload one income proof

Click Choose file and upload a single income proof. The file must be a PDF under 5 MB and must carry the logo and seal of the issuing authority. Any one of these is accepted, each meeting its threshold: a six-month bank statement with average balance above Rs 10,000; the latest salary slip above Rs 15,000 gross monthly; the latest ITR acknowledgement or Form 16 above Rs 1,20,000 gross annual; a net-worth certificate above Rs 10,00,000; the latest demat holdings statement above Rs 10,000 with holdings unpledged; or the latest fixed deposit receipt above Rs 1,00,000.

6. Accept terms and verify OTP

Accept the terms and conditions, enter the OTP, and click Verify OTP. The commodity segment activates within 72 working hours, after which MCX contracts become tradable in Kite. To see them, add MCX F&O to your Kite marketwatch .

Why income proof applies to commodities

Equity delivery and intraday need no income proof, but commodity futures and options do, because MCX commodity contracts are derivatives and SEBI requires brokers to collect a financial-capacity proof before opening any derivatives segment. The same Rs 10,000 average-balance and Rs 1,20,000 gross-annual thresholds govern the F&O income-proof check ; the commodity gate is not stricter, it is the identical list. The income proof is also subject to periodic review under SEBI rules, so a refreshed proof may be requested later to keep the segment active.

The offline route for entities and NRIs

A non-individual account, HUF , partnership or LLP , corporate , or trust , cannot add commodities online. Nor can an NRI, joint, or minor account, or any account without a Zerodha demat account. These cases print the segment-addition form PDF, self-attest one income proof, and courier both to the Zerodha Customer Support Centre in Bengaluru. The entity income-proof list extends to a firm’s six-month bank statement, audited profit and loss statement, ITR acknowledgement, CA net-worth certificate with UDIN, or DP holding statement of the entity.

Funding and the single ledger

Once the commodity segment is active, you do not fund a separate commodity wallet. Through the single ledger facility, funds in the equity segment can be used to trade commodities, so a deposit by UPI or NEFT is available across both. Commodity positions consume margin set by SPAN and exposure ; the brokerage on each executed commodity order follows the Zerodha commodity brokerage schedule, and the commodity transaction tax applies to non-agri futures on sell.

See also

External references

References

  1. Zerodha Support, “How to open a commodity trading account with Zerodha,” segment-addition article, accessed 19 June 2026. Source for the Console steps, the trading classification options, the income-proof list, the 72-working-hour timeline, the free-since-29-June-2024 note, and the Sikkim domicile rule.
  2. Zerodha Support, “How to activate F&O trading on Zerodha,” segment-addition article, accessed 19 June 2026. Source for the online-vs-offline segment-addition split.
  3. Zerodha Support, “What is the single ledger facility?” segment-addition article, accessed 19 June 2026. Source for using equity funds across the commodity segment.
  4. SEBI requirement that brokers collect income proof before enabling a client’s derivatives segment.

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Frequently asked questions

Can I open a Zerodha commodity account on its own?
No. You cannot open a standalone commodity account. You first need a Zerodha trading and demat account with the equity segment active, then the commodity segment is added on top of it through Console.
Is income proof mandatory for the Zerodha commodity segment?
Yes. The commodity segment is a derivatives segment, so SEBI requires one income proof before activation. Any one document from the accepted list works, such as a 6-month bank statement with average balance above Rs 10,000 or an ITR acknowledgement above Rs 1,20,000.
How long does Zerodha commodity activation take?
Up to 72 working hours after a complete request with valid income proof. You receive a confirmation once the segment is live, after which MCX contracts appear in Kite.
Can I use my equity funds to trade commodities at Zerodha?
Yes, through the single ledger facility. Once the commodity segment is active, funds in the equity segment can be used for commodity trades; there is no separate commodity ledger to fund.
Can a non-individual or NRI account enable commodities online?
No. Non-individual accounts such as HUF, partnership, corporate, and trust, along with NRI, joint, and minor accounts, must enable the commodity segment offline by couriering the segment-addition form and income proof.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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