Groww now lets its users trade important commodities like gold, silver, crude oil, and natural gas directly through its app or website. This move gives Indian investors a new way to participate in the financial markets beyond stocks and mutual funds. With this launch, Groww opens the door to an asset class that can protect wealth, reduce risk, and offer new opportunities in changing economic conditions.
Why Groww Added Commodity Trading
Commodities move differently from stocks. Stock prices depend mostly on company performance, business cycles, and investor mood. Commodities react more to global demand, inflation, geopolitical issues, and currency movements. Because of that, commodities often rise when stocks fall.
For example, gold usually performs well when inflation goes up or when stock markets turn unstable. Crude oil and natural gas rise when energy demand increases or when supply faces disruptions. Silver holds a special place because it acts as both a precious metal and an industrial metal used in electronics and solar energy.
By adding commodities to their portfolios, investors can balance risk. If the stock market struggles, commodities can protect returns or even bring profits. This mix of different assets helps investors build stronger and more stable portfolios.
Groww also offers long trading hours for commodities—from 9:00 AM to 11:30 PM. These extended hours suit working professionals who cannot trade during regular stock market sessions. They can now monitor prices and make trades after office hours without missing opportunities.
How Commodity Trading Works on Groww
Groww’s app makes commodity trading simple and beginner-friendly. Users can buy and sell futures contracts of gold, silver, crude oil, and natural gas. A futures contract is an agreement to buy or sell a specific quantity of a commodity at a fixed price on a set future date.
Groww shows live prices, trading volumes, and margin requirements on its interface. It gives users full control to open, monitor, and close positions easily. The app also provides educational materials, tutorials, and market updates to help beginners understand how commodities behave.
Traders can choose from different contract sizes. For example, gold contracts come in various lots like Gold Mini, Gold Guinea, and Gold Petal. These options allow traders to start small and manage risk better.
Groww calculates margins in real time. If a user opens a position in crude oil futures, the app immediately displays the money required to maintain that position. If prices move against the user, Groww alerts them to add more margin or reduce the position. This system keeps trading transparent and disciplined.
By adding commodities, Groww expands its platform beyond equities, mutual funds, and futures and options. The company aims to give users a single platform for all major asset classes in India.
Commodity Trading in India: A Short History
Commodity trading in India takes place mainly on two exchanges — the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX). The MCX handles metals and energy products like gold, silver, and crude oil, while NCDEX deals mostly with agricultural commodities such as grains and pulses.
Before Groww’s entry, many Indian investors traded commodities through brokers like Zerodha. Zerodha began offering commodities in September 2015 through its subsidiary, Zerodha Commodities Pvt. Ltd., after receiving memberships with both MCX and NCDEX. That move brought lower costs, better technology, and more awareness among retail investors.
Zerodha’s early success proved that Indian traders wanted simpler and cheaper access to commodity markets. Now, Groww is following a similar path, but with a more modern and mobile-first approach.
What Makes Commodity Trading Unique
Commodities respond directly to global events. Political tensions, supply cuts, extreme weather, and changes in energy policy can move prices within minutes. For instance, a war in an oil-producing region can raise crude oil prices overnight. Likewise, a drop in gold mine production can lift gold prices quickly.
Because of these global influences, commodities allow investors to benefit from situations that usually hurt other markets. Inflation, for example, reduces the value of money and often brings trouble for stocks. However, commodities like gold and oil usually gain value during inflationary periods.
Trading commodities also gives exposure to global markets. Even though Indian exchanges handle the trades, commodity prices move in line with global benchmarks. This connection makes commodities an exciting space for traders who want to react to world events and not just local stock news.
Advantages of Groww’s Commodity Launch
Groww already serves millions of users who invest in stocks and mutual funds. With commodities now available, the company can meet more investment needs.
Here are some key advantages:
- Diverse Portfolio: Users can now combine equities, mutual funds, and commodities in one account. This mix helps them balance risks.
- Ease of Use: Groww’s simple interface lets beginners place trades without needing a complex terminal.
- Education Support: The platform regularly shares guides, videos, and blogs about how commodities work.
- Extended Trading Hours: Traders can act on market movements even after office hours.
- Transparency: The app shows real-time prices, required margins, and open positions clearly.
- Lower Entry Barriers: Small contract sizes let traders begin with modest capital.
This launch also strengthens Groww’s position as a full-service investment platform. It now competes more closely with long-established brokers who already handle multiple asset classes.
Challenges in Commodity Trading
While commodity trading brings many opportunities, it also comes with challenges. Prices can change fast because global events often affect supply and demand. Traders must stay alert and manage risk carefully.
Groww must also ensure strong risk controls. It must prevent users from taking positions beyond their margin capacity. It also needs to protect its systems from high volatility and sudden market shocks.
Another big challenge lies in education. Many new traders do not understand how futures contracts, expiries, and rollovers work. Groww must keep guiding its users through tutorials and alerts so they can avoid mistakes.
Competition also remains tough. Brokers like Zerodha, Upstox, and Angel One already run established commodity trading systems. Groww must offer better design, faster execution, and strong customer service to stand out.
Economic Drivers Behind Commodity Prices
Commodities rise and fall due to a mix of global and local forces:
- Inflation: Higher inflation pushes up prices of real goods like gold and oil.
- Currency Value: When the Indian rupee weakens against the dollar, imported commodities like crude oil become costlier.
- Global Demand: Strong demand from countries like China and the US can lift commodity prices worldwide.
- Supply Problems: Strikes, wars, or natural disasters can reduce supply and cause prices to spike.
- Interest Rates: When interest rates fall, investors move money from cash to assets like gold that hold value better.
These factors make commodity trading exciting but also unpredictable. Traders must track news, data, and trends daily.
Things New Traders Should Keep in Mind
Anyone starting commodity trading on Groww should follow a few basic rules:
- Start Small: Begin with small contracts to understand price behavior.
- Use Stop-Loss Orders: Always set a stop-loss to limit losses during sudden price moves.
- Avoid Over-Leverage: Leverage can multiply profits but also losses. Trade within your comfort zone.
- Monitor Expiry Dates: Futures contracts expire every month. Keep track of expiry dates and roll over positions if needed.
- Stay Informed: Check global news, crude oil reports, and central bank updates regularly.
- Understand Taxes: Profits from commodity trading fall under income from business or speculation; plan taxes accordingly.
With discipline and awareness, traders can make commodities a strong part of their overall investment plan.
The Bigger Picture
Groww’s entry into commodity trading shows how India’s financial ecosystem is evolving. Retail investors now have access to markets once limited to professionals. This democratization builds financial literacy and widens participation.
When more investors trade commodities, market liquidity improves and price discovery becomes more efficient. However, both brokers and regulators must keep educating investors about the risks of speculation.
Groww’s decision also highlights its ambition to become a one-stop investment platform. After years of focusing on mutual funds and stocks, it now reaches into derivatives and commodities. This move can attract more users, increase engagement, and diversify its revenue.
In 2015, Zerodha took a similar step and proved that retail participation could reshape India’s commodity markets. A decade later, Groww is continuing that story for a new generation of digital-first investors.
As more people understand how commodities like gold, silver, crude oil, and natural gas behave, they will learn to use them wisely — not just for profit, but also for protection against inflation and market volatility.
In summary: Groww’s new commodity trading feature brings flexibility, diversity, and opportunity to millions of Indian investors. It encourages a deeper understanding of global markets and helps individuals build stronger, well-balanced portfolios. Commodities add another tool to every investor’s kit — one that can shine even when other markets struggle.
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