It’s a pleasure to announce that Multi Commodity Exchange (MCX) is now available on FYERS. It got a bit delayed because at the time of our membership application, RBI and SEBI allowed bank’s subsidiaries to trade/deal in commodities for the first time. This led to a flurry of new applications at the exchange that stretched their turnaround time. Other than that, the process of lengthy compliance, dealing with the telecom providers, getting our in-house trading platforms tested, fine-tuned and approved by the exchange and auditors used up more time than we anticipated. But all said and done, we are happy that we are live on MCX.
MCX Margins / Leverage
We have been working on our margin policies to provide traders with the most suitable leverage and reducing risks associated with the price volatility in the commodity markets. Keep in mind that providing high leverage involves cost of financing which is only feasible if the brokerage charges are higher. Since MCX contracts are already highly leveraged, it is best avoided from a risk management perspective. To learn more about the margins required for commodity contracts, visit the MCX section of our Margin Calculator. Please note that the margins required for each commodity can change from time to time without prior notice due to various factors like MCX requirements and our risk management policies. We have kept your expectations in mind and the leverage provided is reasonably high.
We have adopted the same pricing model for MCX futures & options as other segments like the equity & currency segments without making any changes. For more information on this, you can refer to our pricing page. You can also refer to our Brokerage Calculator. Please note that the FYERS 30 Day Challenge will be applicable for MCX too. So, if you have taken up the challenge, we will be considering the P&L of your commodity account to calculate your win.
Trading on MCX
We are the only broker in India to provide MCX trading on the world-renowned TradingView charts. It is available on Fyers One, Fyers Markets and Fyers Web. The order types which will be available on MCX are Intraday, Margin and Cover Orders. Leverage provided on cover orders will be higher than the Intraday product type. For more details about this, refer to our Margin Calculator.
FYERS Policies on MCX Risk management & Settlements
Our risk management team will be square off Intraday trades 25 minutes before the market closes. These timings are subject to change from time to time and we will keep you informed about these changes if we make any, in the future. Since the settlements of commodities are tedious, we will resort to squaring off positions from our end if the clients don’t square off by themselves before the delivery intent day/expiry date whichever is applicable to the specific contract to avoid a delivery situation where the client will have to take/give physical delivery of the underlying goods. To learn more about our Policies & Procedures, you can go through our Terms & Conditions.
After receiving SEBI’s approval, MCX has introduced options contracts in 5 commodities as on date. They are Gold, Silver, Crude Oil, Copper and Zinc. We will be enabling commodity options contracts only in the MARGIN product type (Margins required as per the Exchange’s requirements). Currently, we do not provide leverage on these contracts due to risk management reasons. If we do provide any leverage in the future, we will notify everyone about it.
Fund transfers for MCX trading
To add funds (Pay-in) to your account to be able to trade on MCX, you need to add funds via NEFT/RTGS/IMPS. You can learn more about that in our fund transfers page. To withdraw funds, you’ll need to place a withdrawal request (Pay-out) from the Fund Transfer tab by selecting “Withdraw Funds”.
MCX will be open all weekdays except on the trading holidays which are mentioned in our Trading Holiday Calendar. Each trading day is divided into 2 trading sessions, morning and evening. The morning sessions are between 10:00 AM to 5:00 PM and the evening session is from 5:00 PM to 11:30 PM (Summer) / 11:55 PM (Winter). The evenings sessions are subject to change based on the seasons to account for US daylight savings. These timings are decided by MCX. As a broker, we comply with the exchange’s timings. Please note that clients will have to stay updated about any changes in market timings as they may change without notice. Below are the timings as on date.
- The market timings for Non-Agri commodities are between 10:00 AM to 11:55 PM.
- For Internationally linked Agricultural commodities the timings are between 10:00 AM to 9:30 PM.
- For other Agricultural commodities the timings are between 10:00 AM to 5:00 PM.
How to enable MCX for existing clients
All existing clients who are interested in trading commodities on MCX need to sign new forms. Unfortunately, there is no way around it because these are regulatory requirements which cannot be avoided by us. The good news is that we’re among the few brokers in India to have both Equities & Commodity Exchange licenses in the same business entity. This can help to save valuable time, efforts and some paper as of now. In the future, I’m sure this will help us to seamlessly integrate other things as well. You can get in touch with us here to enable MCX segment.
I really appreciate your patience regarding the launch of MCX on our platforms. We’ll make it worth the wait by giving you the best trading experience. As we go ahead, feel free to give us your feedback so that we can evaluate and make the necessary changes wherever possible. Our goal is to solve the real problems faced by traders and we are uncompromising in our approach. All good things take time but we’re working round the clock to give you a hassle-free trading experience.
Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.