Margin Trading Facility (MTF) enables investors to buy stocks by paying only a portion of the total value, while the broker funds the remaining amount. This allows you to increase your market exposure without deploying full capital upfront.
That said, MTF comes with interest costs and higher risk, which makes it important to understand how it works and choose a broker that offers clear pricing and easy position management.
Below is a curated list of some of the leading brokers offering MTF in India, along with their key features, charges, and usability.
1. Groww
Groww’s MTF offering is designed to keep things simple while still giving traders full control over their leveraged positions. You can invest in eligible stocks by paying a fraction of the trade value, with Groww funding the rest, all within a fully digital interface.
Key Features
- Leverage: Up to 4× on selected stocks (start with ~25% capital)
- Interest Rate: 0.041% per day (~14.95% annually), charged only on borrowed funds
- Brokerage: 0.1% per order on total transaction value
- Pledge Charges: ₹20 per request
- Stock List: Regularly updated list of MTF-approved stocks
- Delivery Conversion: Option to convert MTF positions into delivery anytime
- Shortfall Alerts: Real-time notifications to help manage margin requirements
- AMO Support: Place orders even outside market hours
- Position Insights: Clear breakdown of funded vs invested capital
- Holding Duration: No fixed limit, as long as margin is maintained
Groww stands out for its clean interface, transparent cost structure, and real-time tracking features. From activation to execution, the entire journey is digital, making it especially useful for traders who want clarity and control without complexity.
2. Zerodha
Zerodha offers MTF through its Kite platform, known for its minimal interface and detailed reporting. It is particularly suited for traders who prefer a performance-focused setup, though its MTF is currently limited to NSE-listed stocks.
Key Features
- Leverage: Up to 4× on eligible NSE stocks
- Interest Rate: 0.04% per day on borrowed amount
- Brokerage: ₹20 or 0.3% per order
- Pledge Charges: ₹15 + GST per ISIN
- Holding Period: No fixed limit
3. Upstox
Upstox follows a slightly different approach by offering fixed daily charges instead of percentage-based interest, making cost estimation straightforward. If you prefer predictable, fixed daily costs over percentage calculations, Upstox can be a convenient choice especially for traders holding positions over multiple days.
Key Features
- Leverage: Up to 4× on eligible stocks
- Interest: ₹20 per day per ₹40,000 borrowed
- Pledge Charges: ₹20 per stock
- Holding Period: Up to 1 year
- Security: CDSL-backed pledge system
- Platform: Fully digital workflow
4. Angel One
Angel One provides Margin Trading Facility with flexible holding periods and a digital-first experience. It also offers periodic interest-related benefits for certain users, depending on ongoing offers.
Key Features
- Leverage: Up to 4× on approved stocks
- Interest Rate: ~0.041% per day
- Brokerage: 0.1% or ₹20 per order
- Pledge Charges: ₹20 + GST per ISIN
- Holding Period: No fixed duration
- Special Offers: Periodic interest discounts
5. Dhan
Dhan’s MTF offering is built for users who prefer tracking their positions and costs closely. It provides visibility into margins, interest, and eligible stocks directly within the trading interface.
Key Features
- Leverage: Up to 4× on approved stocks
- Interest Rate: 0.04% per day (~14.6% annually)
- Brokerage: ₹20 per order
- Pledge Charges: ₹12.5 + GST per stock
- Holding Period: No fixed limit
How to Choose the Right MTF Broker?
While comparing brokers, don’t focus only on leverage. It’s equally important to evaluate:
- Interest rates and billing method (daily vs slab)
- Additional charges like pledge or DP fees
- Ease of tracking margin and costs
- Availability of stocks under MTF
- Platform experience and execution speed
Choosing the right broker can make a noticeable difference in your overall trading cost and experience.
Margin Trading Facility can be a useful tool if used wisely, as it helps you take larger positions with limited capital. However, since it involves borrowing, it’s important to stay mindful of interest costs and risks.
All the brokers listed above offer well-defined MTF services. Groww, in particular, stands out for its transparent pricing, fully digital workflow, and detailed position tracking, making it a strong choice for both beginners and active traders.
That said, the right platform ultimately depends on your trading style, holding period, and comfort with leverage. Always review the terms carefully and monitor your positions closely when using MTF.
