Zerodha Now Allows Equity and Commodity Trading from a Single Account: Founder Explains Activation Process

Commodity Trading without Separate Account

Investors no longer need to create a separate account for commodity trading or add funds to it on the Zerodha trading platform. They can now purchase commodities using funds from their existing equity account. Nithin Kamath, the founder and CEO of Zerodha, shared this information on the social media platform X.

He wrote: “Now, you can trade commodities using the same equity account balance without creating a separate commodity account. This was a legacy issue that took us a long time to resolve. Zerodha Broking is our primary membership and Zerodha Commodities Pvt Ltd is the commodity member.”

Transition to Zerodha Broking

Nithin Kamath mentioned that they have started allowing customers to shift to Zerodha Broking Limited, even if they trade commodities. As part of this process, they are surrendering the license of Zerodha Commodities Private Limited on exchanges where they are not active, such as NSE.

“You can trade on NSE commodities using the same equity account. As we are surrendering the commodity license under Zerodha Commodities Private Limited, you might have seen notices in the newspaper,” Kamath stated.

Procedure to Activate Commodity Segment:

1. Open Zerodha’s Kite App
2. Tap on User ID and go to Profile
3. Select Segment and then tap on ‘Commodity’ and Continue
4. Provide Information about total income, trading experience, and commodity trading details
5. Upload Income Proof or select holding statement
6. Tap on Undertaking and choose mobile or email for OTP
7. Tap Continue, enter OTP and verify
8. Post Verification, the commodity segment will be activated within 72 hours
   

Historical Process:

• Previously, Zerodha had separate accounts for equity and commodity.
• Equity accounts were opened under Zerodha Broking Limited, while commodity accounts were managed under Zerodha Commodities.
• Customers had to add funds to each account separately and couldn’t use funds from their equity account for commodities and vice versa.
  

New Process:

• Zerodha now offers a single account facility under Zerodha Broking Limited where funds can be used for both equity and commodity segments.
  

Opening a New Account:

• If you haven’t opened a commodity account with Zerodha before and now activate the commodity segment, a new account will be opened under Zerodha Broking Limited.

For Existing Commodity Account Holders:

• Activating the commodity segment from Console will deactivate the current commodity account and a new commodity account will be opened under Zerodha Broking Limited.
• Ensure all existing MCX positions are closed before this process is completed.