ok… Then need to look into. I feel when your holdings are in loss they gradually reduce the MTF pledgeed margin for that so you would required to provide extra margin for that.
I prefer like this
MSTOCK (since 0 brokerage and less MTF rate) , not a fancy app but doesnt matter if you are a short to long term trader.
Ruppezy ( now they have increased rates to 11% earlier it was 9 % also the brokerage is hgh .20% of total delivery ) hence considered to be littly costly but only thing is tha it cover many stocks where other brkers provide the margin also margin would be considerably higher)
Kotak stands out to be one ( with 9.75% and also having .1% brokerage which is huge but overall its ok and good thing is 0brokerage on intraday.
so overall MSTOCK is stellar one for now.
For Ruppezy - When this incident happend none of my holdings were in losses.
Also, they were charging interest from the date of trade till the date you receive settelment. so for ex -if you took a position on 1 April and square it off on 15 April for which you receive the settelment on 18 April due to holidays, they will charge you interest from 1 April to 17 April despite of squaring off the position on 15 April. Further for the settelment period i.e. 15 April to 17 April, the interest will be charged on the full amount of security i.e. they will ignore the fact that the position was partially funded by you.
Since my position was big I was getting a significant increase in the interest cost because of the above methodology. I had an argument on the methodology with customer executive, but nothing worked. So finally I closed the account. In short, their interest rate is not 11% but significantly higher than that because of their methodology to compute margin and interest .
Mstock - They follow the T+1 settelment rule i…e. the interest will start from the next day of your trade. Also, their interest rate is best as compared to others, though there are some hickups on the platform but i am experiencing that they are improving on it continously. Also, I think the motive in stock investments is to maximise profits and not to compare features among the platforms, you can anyways open an account with any brokerage firm with better platform and utilize their tools to do your research, at a very minimal or no cost.
Kotak - MTF is basically for swing traders, so it will give max profit when their is no % based brokerage. Kotak ROI is low but due to brokerage it wont give profit equivalent to positions created through Mstock. Mstock knew it very well and they hit the nail.
Dhan app : Best, no hang, no glitch
Mtf charges : 0.0438% per day
Transparency in charges : Not transparent…
Wrong changes: Doubtful…
Disadvantages. : None
Advantage: dp, pledge unpledge charges are lowest, 12.5 rupees…
Hdfcsky app : worst app…hang…glitches
Mtf charges : 12% pa
Transparency in charges : Not Transparent…
Wrong changes: Yes, openly…untrusted…
Disadvantages: many
Advantage: None
Angel app : Best, no hang, no glitch
Mtf charges : 18% pa
Transparency in charges : yes…
Wrong changes: No…
Disadvantages : if you have shares in mtf there is chance that angel will convert it to delivery without informing you, if you have fund in Account…
Advantage: average
They dont allow MTF position when u have cash. Means u have to exhaust all you capital before u buy anything on MTF. Note : If you have cash, you can still buy on MTF , but even if it is pledged they will convert it delivery if you have cash the next day.
They provide margin on 1000+ stocks and its not like 2x margin provided by Dhan or Upstox. It is 5x,4x,3x depending on the various factors related to that stock.
Lets say u have positions in mtf( after exhausting all capital in delivery and utilizing the pledged margin). U sell one of the delivery stocks. So now u have cash in your margin account( or wallet). Next day as per FIFO sequence, one of your MTF stocks will get converted to delivery.
Max holding : 90 days only.
Technically, as u have no cash, u cant withdraw anything when on MTF.
This is good or bad , it depends on your trading style. Why should someone buy on margin, if they have cash to buy( This is what angelon explains ). But it should be made flexible and options should be given to the customer to choose margin against cash versus pledged security for margin trading.
Dhan, HDFC & ICICI have that flexibility for both.
Upstox used to allow margin against cash only (Not aware if it is same now also).
Yes like @sn88 said angelone is not good for MTF ,even i dont know why they are calling its MTF for your clear understanding on angelone if you have cash balance of 10000.
Want to trade maruti (LTP was 12500) as it is 5x so upfront margin of 2.7k will be reduced after pledged on evening still your balance shows 7.3k but on next day you cash balance will go on negative for -2.5k so you can’t withdraw by the way their customer service saying can’t if there is an open MTF position balance amount rather than upfront margin gets blocked what ever in your account if your account above 12.5 then you can take another position or withdraw amount
What the special thing is they block all the margin and charge you the interest for 9.8k
Why I’m specifically mentioned maruti is same stock same thing happen for checking angelone MTF
I moved from icici due to high brokerage,but still icici has more flexibility than any other MTF providing brokers the only concern is their huge brokerage and interests charge.
And recently know that kotak is also same kind of angelone is any kotak user kindy give your MTF experience will be much appreciable.
That’s weird. Broker should either allow you to use the remaining 7.3k (security level MTF) for other positions or charge interest on 2.5k only (portfolio level MTF). How is this justified?
