A commodity exchange is a regulated marketplace where traders buy and sell futures and options linked to commodities like gold, crude oil, natural gas and farm produce. In India, SEBI regulates every commodity exchange.
Quick answer:
India has four exchanges with an active commodity derivatives segment: MCX, NCDEX, NSE and BSE.
MCX is the largest by far, with over 98.5% of commodity futures turnover.
NCDEX is the main exchange for agricultural commodities like guar seed, jeera and turmeric.
NSE offers bullion, energy, base metals and electricity contracts in a separate commodity segment.
List of Commodity Exchanges in India
Older lists often include ICEX (Indian Commodity Exchange), but SEBI withdrew its recognition in January 2025, so it is no longer a trading option.
The India International Bullion Exchange (IIBX) in GIFT City trades physical gold and silver. It works under IFSCA, not SEBI. Our GIFT Nifty guide explains how GIFT City exchanges work.
MCX vs NCDEX vs NSE: Quick Comparison
Want to see how commodity options move before you trade live? Replay a past MCX evening session in the AlgoTest Option Simulator and practise your entries and exits.
MCX (Multi Commodity Exchange of India)
MCX is India’s largest commodity exchange. It started trading in November 2003 and held over 98.5% of commodity futures turnover in April to June 2026.
MCX lists futures on bullion, energy, base metals and electricity, plus agri contracts like cotton, cardamom and mentha oil, and commodity index futures.
It offers options on gold, silver, crude oil and natural gas (in regular and mini sizes), copper and zinc.
Bullion, energy and metal contracts trade until 11:30 PM, so you can react to US data and the US market open. Agri contracts close earlier, as our MCX trading time guide shows.
Most commodities come in more than one contract size, so check the MCX lot size before you place an order.
Almost all of India’s crude oil, gold, silver and natural gas trading happens on MCX, so this is where testing a commodity strategy matters most. AlgoTest is one of the few platforms in India where you can backtest MCX strategies on historical data and see how a crude oil or gold setup would have performed before you risk money on it.
Ready to test your MCX strategy on past data? Sign up to get 100 Backtests free/month
NCDEX (National Commodity & Derivatives Exchange)
NCDEX is India’s main exchange for agricultural derivatives. It started trading in December 2003.
It lists farm commodities like guar seed, guar gum, jeera, turmeric and castor seed.
Most agri contracts trade from 10:00 AM to 5:00 PM on weekdays.
Many contracts settle by physical delivery, so the quality grade and delivery centre matter as much as the price.
In June 2026, NCDEX launched India’s first weather derivative, a cash-settled futures contract on Mumbai rainfall.
SEBI has suspended futures trading in seven agri commodities since December 2021: paddy (non-basmati), wheat, chana, mustard seed, soybean, crude palm oil and moong. The suspension now runs until 31 March 2027.
NSE Commodity Segment
NSE launched commodity derivatives in October 2018, after SEBI allowed stock exchanges to offer commodity trading. It runs as a separate segment, so you need it activated with your broker even if you already trade equity on NSE.
NSE lists futures on gold, silver, crude oil (WTI and Brent), natural gas, copper, aluminium, lead, zinc, nickel and electricity.
It offers options on gold, silver, crude oil, natural gas, copper and zinc.
On Zerodha’s Kite, NSE commodity contracts appear under the code “NCO”.
NSE crude oil options expire seven business days before the underlying futures, so check the expiry date before you hold a position.
Margin benefits between your equity and commodity positions are not automatic, so confirm them with your broker.
Liquidity is the main gap between NSE and MCX. Most bids, offers and open interest sit on MCX, which usually means tighter spreads there.
Trading MCX options? Build your gold or crude oil position in the AlgoTest Strategy Builder to see your max loss and breakeven before you place the order.
Who Regulates Commodity Exchanges in India?
SEBI has regulated India’s commodity exchanges since 28 September 2015, when the Forward Markets Commission (FMC) merged into SEBI. In 2018, SEBI allowed one exchange to offer both equity and commodity trading, which is why NSE and BSE added commodity segments that year.
Each exchange settles trades through its own clearing corporation. So a long position on MCX cannot be offset by a short position in the same commodity on NSE, and you close each position where you opened it.
Which Is the Best Commodity Exchange in India?
There is no single best exchange for every trader. MCX is the best fit for gold, silver, crude oil and natural gas, because that is where most of the volume is. NCDEX is the best fit for agricultural commodities, and NSE works only if your contract has enough volume there.
Before you trade, run these four checks.
1. Match the commodity to the exchange
Choose MCX for gold, silver, crude oil and natural gas, and NCDEX for farm produce like guar seed or jeera. Consider NSE only if your contract has enough volume there.
2. Check liquidity in the exact contract
Look at volume, open interest and the bid-ask spread for your exact expiry and strike. A liquid futures contract does not mean its options are liquid too, and thin markets cost more through slippage.
3. Work out the full contract value, not just the margin
MCX Crude Oil has a lot size of 100 barrels, so a ₹20 move changes the value of one lot by ₹2,000. Margin is only a fraction of that, which is why leverage in futures can multiply losses. Use a position size calculator to match the trade to your capital.
4. Know how the contract settles
Some contracts settle in cash and others end in physical delivery, so square off before the delivery period if you don’t want the goods. Many commodity options are options on futures, so an in-the-money option can turn into a futures position at expiry.
5. Confirm your broker and tools support it
The exchange lists the contract, your broker routes the order, and a platform like AlgoTest helps you test or automate the strategy. Check that all three support your commodity, and compare the best MCX algo trading software if you plan to automate.
How to Test a Commodity Strategy Before You Trade
Choosing an exchange decides where your order goes. You still need a reason to enter, a position size, an exit rule and a plan for bad days.
Compare contract sizes. Build the same crude oil options position on the regular and mini contract in the Strategy Builder to see how max loss, breakeven and option Greeks change with lot size.
Replay a volatile evening. Use the Option Simulator to replay a past MCX session, such as a US inflation data release, and practise your entries and exits as premiums jump.
Check it across months.Backtest the same rules over calm and volatile periods to see the win rate and the maximum drawdown before going live.
Choose Your Exchange, Then Test Your Commodity Plan
The right exchange is the one where your contract has real liquidity and settlement terms you understand. Once that is settled, write down your entry, exit and position size, and check how the plan holds up on past data before real money is on the line.
AlgoTest helps you move from an idea to a strategy you can inspect and test before deciding whether to deploy.
Join us as we simplify retail trading in India.
Related Reading
FAQs
Which is the best commodity exchange in India?
It depends on what you trade. MCX is best for bullion and energy, NCDEX is best for agricultural commodities, and NSE suits traders whose contract has enough volume there.
What are the major commodity exchanges in India?
The major commodity exchanges in India are MCX, NCDEX and NSE. BSE also has a commodity segment with much less trading.
How many commodity exchanges are there in India?
Four exchanges currently offer commodity derivatives in India: MCX, NCDEX, NSE and BSE. ICEX lost its SEBI recognition in January 2025.
Which is the largest commodity exchange in India?
MCX is the largest, with over 98.5% of commodity futures turnover in April to June 2026.
Are NCDEX and MCX the same?
No. They are separate exchanges with separate clearing corporations. MCX mainly trades bullion, energy and metals, while NCDEX focuses on agricultural commodities.
What is the difference between NSE and MCX for commodity trading?
Both list futures and options on bullion, energy and base metals with the same trading hours. MCX has far more liquidity, while NSE lets you trade commodities on the exchange you may already use for equity.
What is NCO in Zerodha?
NCO is the code Zerodha’s Kite uses for NSE’s commodity segment. MCX contracts appear separately under MCX.
Who regulates commodity exchanges in India?
SEBI regulates all commodity exchanges in India. It took over from the Forward Markets Commission on 28 September 2015.
Which platform is best for commodity trading in India?
To place trades, you need a SEBI-registered broker that supports MCX or NSE commodities. To test commodity strategies first, AlgoTest offers MCX backtesting, a Strategy Builder and an Option Simulator in one place.
Editorial note: This article is for education and is not investment advice. Check the exchange’s website and your broker before trading.
Sources: