[FONT="]The regulatory authorities have given the participants in the freedom to decide their service charge structure. The participants are competing with each other for depository accounts, and thus one can negotiate the service charge for his account based on the level of activity and the volume of commodities brought and sold.[/FONT] [FONT="][/FONT] [FONT="]The regulatory authority, however, charges its depository participants and these include:[/FONT] [FONT="]• Custody charges based on the average market value of the commodities held in the account, subject to an overall ceiling based on the average holding in the demat form with the depository participant[/FONT] [FONT="]• Settlement charges based on the market value of the commodities to be traded on a particular day, whichever is higher[/FONT] [FONT="][/FONT] [FONT="]Both the regulatory authorities and the traders must abide by the legitimate rights laid down in the Bye-law and Business rules that govern:[/FONT] [FONT="]• Fee and Charges[/FONT] [FONT="]• Re-materialization Charges[/FONT] [FONT="][/FONT] [FONT="]The commodity trading business will not be the same without a regulatory authority. Actually, the regulatory authority acts as a watchdog. If the regulatory authority is absent, then it will become a free for all and the genuine players will have gone bust within a short span of time. For the proper functioning of the regulatory body, it needs to generate its own income. This money is generated through the fee levied on the commodity trade. Actually, free trade is not that free. Free trade will be free only if there is a watchdog to ensure that the freedom allowed is not trampled down by a few prominent traders.[/FONT] [FONT="][/FONT] [FONT="]The commodity trading business is a profitable option if the various players adhere to the rules and regulations laid down by the regulatory authorities. Often, most traders are able to make up the losses in one trade by generating profits in another trading day when the market is on the upswing.[/FONT]
