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  • Commodity Tading without RMS restrictions

    Unable to participate in commodity trading due to RMS restrictions? Find out if there are any good brokers through whom you can trade in all Futures without any blocks created.

    I trade in Commodity Futures of MCX. There are some Futures that are available for trading, but the RMS (Risk Management System) of my broker (Zerodha) sometimes blocks some of them for trading. Who are the major Brokers that allow trading in all the Futures without imposing such restrictions?
  • Answers

    3 Answers found.
  • Zerodha is No1 Broker in India . This online platform is very well accepted and you can invest in stocks, derivatives, mutual funds and other instruments using this platform.
    You can trade-in
    1. Futures and Options
    2. Commodity derivatives
    3. Currency derivatives
    4. Stocks & IPOs and in many more instruments.

    RMS system of this online site is very effective and ensures the safety of the funds you invest and avoid losses. It will analyse potential loss from your investments and also suggest how to mitigate the chances of incurring losses. These systems are an essential part of strategies used by investors while trading. I think ignoring the suggestions given by this system is not wise and chances of losing may increase. I feel it is better you continue with Zerodha only
    Anyhow, I am giving below some other broker agencies in India.
    1. Upstox
    2. Angel Broking
    3. ICICI Direct
    4. Groww
    5. 5Paisa
    I suggest you visit their sites and you can select as per your liking. But avoiding RMS is not advisable, in my opinion.

    always confident

  • Thank you for replying to my post.

    Unfortunately, your reply is rather general. I want specifically, those brokers who allow trading without RMS restrictions. Looks like I will have to check with them one by one.

  • There are leading brokers who are using certain computer applications for managing the risks in commodity trading. These features are inbuilt in the computer program and broker is extending it to you through its portal. If you want to execute commodity trading without that risk management application then the broker will first advise you not to do so but on your insistence would disable it for you as the risk is being taken by you yourselves. So that is not a big deal and only thing is you have to ask your broker specifically to disable it.
    Please note that these are very complicated softwares being used by the brooking houses and their efficacies are well understood and appreciated by all. Still, the individual wisdom and foresight in the market is always an important factor and can have edge over the computer programmes in many cases. If you believe that you have the idea of the pulse of the commodity market in good detail then you can very well go without that software alert provided in the system.
    It might be so that all the softwares might not have the facility of disabling the alert for a particular customer or investor and in that case you will have to enquire them one by one only.
    Anyway some of these top RMS utilities are CommodityPro, BaffleSol, CLX, MX.3 etc and many brokers might be using something like that or equivalent ones in their trading platforms. If you want to gather more information regarding this area then go through the reading material on Commodity Trading, Transaction, and Risk Management (CTRM) Softwares.

    Knowledge is power.

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