Margin Trading Facility (MTF) is a SEBI-approved product that lets you buy stocks by paying only a fraction of the total value, generally 25%, while your broker lends you the rest. You pay daily interest on the borrowed amount, and the purchased stocks are pledged as collateral. Positions can be held for days, weeks, or months as long as your margin stays above the required level.
For beginners, MTF can be a useful way to take measured positions without tying up all your capital. But it isn’t free money. Daily interest compounds quietly, and if the stock drops far enough, your broker can square-off your holdings without warning. Pick a platform that keeps things transparent, start small, and never treat leverage as a shortcut.
Platform 1 : Groww — The MTF Platform Built Around Clarity
Groww MTF provides a clear and efficient way to trade on margin, enabling investors to purchase eligible stocks with partial funding and complete visibility of interest, charges, and position details. It includes advanced features like conversion to delivery, live shortfall alerts, detailed position breakdowns, and after-market order support, all within a simple, fully digital interface.
Key Features of Groww MTF
- Leverage: Up to 4× buying power — investors can start with as little as 25% of the trade value.
- Interest Rate:041% per day (about 14.95% annually) charged only on the borrowed amount.
- Brokerage:1% per order, based on total order value.
- Pledge/Unpledge Fees: ₹20 per order (flat).
- Eligible Stocks: Investors can view a live list of MTF-approved stocks directly on the app or website, which is updated regularly.
- Convert MTF to Delivery: Users can convert their margin-funded holdings into delivery anytime by paying the remaining funded amount. This gives more flexibility to manage investments.
- Shortfall Visibility: Groww shows clear shortfall alerts if the required margin drops, helping investors act quickly to avoid auto square-offs.
- Improved Position View: Each position now shows the investor-funded amount as well as the broker-funded amount, along with returns calculated on the investor’s contribution.
- After Market Orders (AMO): Users can place MTF orders even after trading hours, which will execute automatically when the market opens.
- Digital Process: MTF activation, order placement, and pledge authorization are all handled completely online, with no paperwork required.
- Transparency: All charges are displayed upfront before placing the order with no hidden costs.
- Holding Period: No fixed time limit for holding MTF positions.
Platform 2 : Upstox
Upstox offers a margin trading facility that is easy to understand, with a fixed daily charge structure and a long holding period.
Key Features
- Leverage: Up to 4× on eligible equity delivery trades.
- Interest: ₹20 per day for every ₹40,000 borrowed, based on a slab model.
- Pledge/Unpledge Fees: ₹20 per stock.
- Holding Period: Positions can be held up to 365 days, with daily interest applicable.
Platform 3 : Zerodha (Kite)
Zerodha’s Margin Trading Facility (MTF) on the Kite app allows users to take leveraged delivery positions with cost visibility and flexible holding periods. It currently supports only NSE-listed stocks.
Key Features
- Leverage: Up to 5× leverage on select NSE-listed stocks, depending on stock eligibility and margin requirements.
- Interest Rate:04% per day (approximately 14.6% annually) charged only on the borrowed portion of the trade.
- Brokerage: ₹20 or 0.3% per executed order (whichever is lower), applicable on the full trade value.
- Pledge/Unpledge Fees: ₹15 + GST per ISIN per transaction.
- MTF to delivery conversion: Users can now easily convert their MTF positions to delivery holdings through Console.
- Holding Period: No fixed time limit for holding MTF positions, but daily interest is applicable until repayment.
Platform 4 : AngelOne
Angel One offers a Margin Trading Facility (MTF) that allows investors to take leveraged positions on a wide range of approved stocks. The platform focuses on providing flexibility in holding periods and transparent interest charges.
Key Features
- Leverage: Up to 4× leverage on eligible stocks, depending on margin requirements and stock category.
- Interest Rate: 041% per day (around 15% annually) charged on the borrowed amount.
- Brokerage:1% or ₹20 per order, whichever is lower.
- Pledge/Unpledge Fees: ₹20 + GST per ISIN for each transaction.
- Holding Period: No fixed limit on holding period.
Platform 5 : ICICI Direct
ICICI Direct’s MTF offers broad stock coverage and a flexible holding period, making it suitable for investors seeking a full-service brokerage experience with extended leverage options.
Key Features
- Leverage: Up to 4× on a wide range of approved delivery stocks.
- Interest Rate: Starts from 9.65% per annum (about 0.0265% per day), depending on the chosen brokerage plan.
- Pledge/Unpledge Fees: ₹25 + GST per transaction.
- Holding Period: Up to 360 days, with daily interest charged on the borrowed funds.
Platform 6: Dhan
Dhan offers a Margin Trading Facility that focuses on speed, transparency, and ease of execution. Dhan’s app and web dashboard provide real-time margin tracking, cost breakdowns, and access to an MTF stock list with live eligibility and required margin data.
Key Features
- Leverage: Up to 4× on eligible delivery-based stocks, depending on exchange approvals.
- Interest Rate:04% per day charged on the borrowed amount.
- Brokerage: ₹20 per order for equity delivery under the MTF segment.
- Pledge/Unpledge Fees: ₹12.5 + GST per stock
- Holding Period: No fixed limit; positions can be maintained as long as margin requirements are met.
Platform 7 : Kotak Securities
Kotak Securities offers Margin Trading Facility through its Kotak Neo platform, allowing investors to take leveraged positions in a wide range of stocks with a fully digital process.
Key Features
- Leverage: Up to 4× on eligible delivery-based stocks, depending on exchange approvals.
- Interest Rate: Starts from ~ 9% p.a. (varies by plan and tenure)
- Holding Period: Up to 365 days
Platform 8: 5Paisa
5paisa offers Margin Trading Facility (MTF) that enables investors to take leveraged positions in a wide range of approved stocks through a simple, app-based platform. The process is fully digital, allowing users to pledge securities, access margin funding, and track positions with ease.
Key Features
- Leverage: Up to 4× on eligible delivery-based stocks, depending on exchange approvals.
- Interest Rate:05% per day charged on the borrowed amount.
- Holding Period: Up to 365 days
Platform 9 : Motilal Oswal
Motilal Oswal offers Margin Trading Facility (MTF) that allows investors to take leveraged delivery positions across a wide range of approved stocks. As a full-service broker, it combines margin funding with access to research, advisory, and investment insights through its integrated platform.
Key Features
- Leverage: Up to 4× on eligible delivery-based stocks, depending on exchange approvals.
- Interest Rate: Starts from 9% – 18% p.a. (varies based on tenure and funding).
- Funding Options: Margin via cash or pledged holdings.
- Holding Period: Up to 365 days.
Platform 10 : HDFC Sky (HDFC Securities)
HDFC Sky offers Margin Trading Facility as part of its broader trading and investment platform, backed by HDFC Securities.
Key Features
- Leverage: Up to 4× on eligible delivery-based stocks, depending on exchange approvals.
- Interest Rate: 12% per annum
- Brokerage: ₹20 per order or 2.5%
- Pledge/Unpledge Fees: Standard charges apply for pledging/unpledging shares.
- Holding Period: Hold stocks up to T+275 days.
Margin Trading Facility can be a useful tool for investors looking to increase market exposure with limited capital. However, since it involves leverage and ongoing interest costs, it is important to use it carefully and choose a platform that offers clear pricing, strong risk controls, and ease of use.
