What are MCX and NCDEX
Apart from stock exchanges, India also has exchanges that deal in the commodity market. The two exchanges who are quite popular in the stream are MCX known as Multi Commodity exchange of India Ltd, and NCDEX which is National Commodity and Derivatives exchange ltd. Both of these exchanges are fully electronic, which makes their usage convenient and their study engrosses a wider range of investors throughout the world.
About MCX and NCDEX
Both the organizations were established in 2003, giving a breakthrough to the commodity market. MCX and NCDEX both hold a distinct identity, though both of them have their headquarters in Mumbai only, also both are currently governed by SEBI. MCX and NCDEX both are internationally recognized exchanges. MCX has its specialization in bullions, and commercial as well as precious metals like gold, silver and platinum. Whereas, NCDEX is known for best returns in Agri Products. It deals with oil, cereals, and seeds.
MCX Vs NCDEX– Commodities traded:
So there are a certain number of commodities in which MCX and NCDEX trades, MCX trading includes 38 to 40 commodities which are gold, silver, and other traded metals along with energy and some agro-based products. And on the other hand, NCDEX trades in 34 to 36 commodities comprising Agricultural products, energy, polymer, and some precious metals. Thus, MCX tips differ from NCDEX tips.
To smoothen the transactions and facilitate transparency, MCX and NCDEX both have collaboration with some major public and private banks throughout the nation. Specifically, MCX has 16 banks including Axis Bank, Bank of India, ICICI Bank and State Bank of India. And NCDEX has 15 banks including Canara Bank, HDFC, Punjab National Bank, Induslnd Bank, and Union Bank of India.
MCX Vs NCDEX: Promoters and shareholders
Both the institutions have their separate base of promoters and investors. NCDEX is promoted by leading domestic organizations like ICICI Bank, NABARD, LIC, and NSE. Whereas, MCX is promoted by internationally acclaimed organizations such as NSEL, Singapore Mercantile Exchange, Bahrain Financial Exchange and Global Board of trade.
MCX and NCDEX – Technology
To enable ease and convenience in trading, MCX and NCDEX, both use state of the art technique. It helps the traders to fasten the process with null errors. The exchanges strive to provide facile trade to their members and to achieve the same both organizations ensure smooth functioning of the process and resolve issues quickly. They have CTCL which enables its members to connect with the platforms from anywhere. Even one could easily connect with respective organizations through multiple connectivity media like VPN, Vsats, and internet. Although the working in MCX and NCDEX goes on weekdays only, that means a new member could join only between Monday to Friday.
MCX Vs NCDEX: websites
MCX and NCDEX both have their separate platforms. These websites inculcate all the latest updates and required information for their users. The information covers a major part of market statistics, including indices, performance, shareholder’s data, press releases and current prices of diverse commodities and lot more. Both organizations ensure that their website contains all the useful information for their investors.
Though the working of NCDEX and MCX are quite similar, still they cannot be compared to each other and the same commodity tips can also not be applied on both the markets. The major factor behind this is commodities, there is a lot of difference in their commodities and so there performances. Most traders make use of the professional commodity tips to earn from both the exchanges simultaneously.
From an investor’s perspective, one should first determine the commodity and then select the exchange. Though analysts recommend that an investor should invest in multiple commodities so that uncertain losses could be minimized.
The exchange market is influenced by multiple factors globally, so to get equalized returns an investor should look for the best MCX tips and NCDEX tips separately.
For more information on stock, commodity or forex market consult Shyam Advisory.