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Top Stock Brokers In India With The Lowest MTF Charges
- •Margin Trading Facility lets traders buy shares by paying a portion upfront while brokers fund the rest with daily interest charges.
- •Kotak Neo's Trade Free Pro plan offers the lowest annual MTF rate at 9.69%, though it requires a monthly subscription fee of 249 rupees plus GST.
- •HDFC SKY charges a flat 1% per month, equating to 12% per annum, with leverage up to 4x.
- •Zerodha and Angel One charge around 0.04% to 0.041% per day, translating to roughly 14.6% to 14.99% per annum.
- •Upstox MTF pricing varies between 14.6% and 18.25% per annum depending on the chosen plan and the borrowed amount.
Key Questions Answered
Kotak Neo offers the lowest flat MTF interest rate at 9.69% per annum under its Trade Free Pro plan. However, this plan requires a monthly subscription fee of ₹249 plus GST and a delivery brokerage of 0.10%.
MTF costs comprise the interest rate structure, leverage and funding limits, and additional charges such as per-order brokerage and separate pledge or unpledge fees. Because interest accrues daily on open positions, even a small difference in the annual rate can significantly impact your overall returns.
You must ensure your target stock is on your broker's approved MTF list of SEBI-approved Group I securities, complete PAN and Aadhaar-based KYC, and explicitly activate the MTF feature through your broker. Additionally, you need to understand the applicable margin and pledge rules, as shares bought under MTF are held by the broker via a pledge.
