In a recent LinkedIn post, Nithin Kamath, founder of Zerodha, discusses the dramatic shift in commodity trading, particularly on the Multi Commodity Exchange (MCX). Kamath highlights how what was once an afterthought has become a significant part of the market, largely driven by the recent performance of gold and silver.
The Rise of Gold and Silver in Commodity Trading
Kamath points out that commodity trading, especially in gold and silver, has seen a substantial increase in liquidity and trading volumes. He notes that this surge has occurred at the expense of other commodities like crude oil. This trend was largely unexpected, even by market participants.
“Up until a few years ago, commodity trading was more or less an afterthought. Most traders didn’t bother with it because liquidity was thin relative to NSE F&O.”
The founder of Zerodha elaborated on the current state of affairs, indicating that the percentage of gold and silver in total MCX trading volumes is now “kind of crazy.” This remarkable growth signifies a major change in market dynamics and trader behavior.
Impact on Zerodha and Market Share
Kamath also addressed the impact of these market shifts on Zerodha. He explained that the brokerage firm experienced a temporary dip in market share because it was among the later adopters of the single trading ledger facility. This facility allows traders to use the same funds across different exchanges, including NSE, BSE, and MCX.
“Our own market share at Zerodha took a hit during this period because we were one of the last brokers to offer the single trading ledger facility—where you can use the same funds in your account to trade across NSE, BSE, and MCX.”
Despite this initial setback, Kamath shared that Zerodha’s market share has been steadily recovering. He expressed surprise at the magnitude of the volume growth, stating that he would not have predicted such a scenario a few years prior.
Future Developments and Educational Initiatives
Looking ahead, Kamath mentioned that Zerodha is actively developing educational resources related to commodity trading. He announced that they are working on several live programs focused on commodities trading, which will be available on Zerodha Varsity.
“Btw, we are working on a few live programs about commodities trading on Zerodha Varsity.”
This initiative underscores Zerodha’s commitment to educating traders and providing them with the tools and knowledge needed to navigate the evolving landscape of commodity markets. As Nithin Kamath highlights, the recent boom in gold and silver trading presents both opportunities and challenges for traders, and understanding these dynamics is crucial.
📝 About This Content
This article is based on insights shared by Nithin Kamath on LinkedIn.
📅 Originally posted on January 19, 2026 | View original post on LinkedIn →