MTF closed beta for TradingQ&A users

Zerodha Feature Announcements
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We are excited to announce that we now have margin trading facility (MTF) ready at Zerodha and as promised, are opening a closed beta program to onboard a small set of TradingQ&A users who can beta test this and share feedback before we open it up for everyone.

If you are looking to trade in MTF and want to be our first beta users, please fill out this form after which we will enable the facility for your account.

Do note, that trading in MTF requires you to have DDPI or POA enabled for your account. If your account has eDIS - TPIN enabled, you can enable DDPI from this link. Your account would be DDPI enabled by the time we enable access to MTF.

Note- Single ledger clients and non-individual/NRI/Joint/Minor accounts will not be able to take part in the beta

What’s Margin Trading Facility (MTF) ?

Margin trading facility or MTF allows you to purchase shares by bringing only a portion of the total cost. The remaining amount is funded by Zerodha and interest is charged on this amount for as long as you hold the securities.

What are the charges associated with MTF?

The charges associated with MTF are as follows:

  • Interest charges for using Margin Trading Facility: 0.04% per day of the funded amount. The charges will apply from T+1 day until the stocks are sold.
  • Brokerage: 0.03% or Rs. 20, whichever is lower.
  • Pledge charges: Rs 30 per ISIN per pledge, and no charges for unpledging.

PS: I know this has taken us forever to offer, but we’ve had to build this product from scratch. The MTF product has touchpoints across trade process, settlement process (equity payin payout), front end (Kite), accounting etc and thus had to be tested thoroughly before even considering a closed beta. While we’ve done everything in our stride, we want to invite users to evaluate the product, give us feedback on improving it further.

I understand that a lot of users will express interest, but given the complexity of the product, we will have to onboard limited set of users and work with them closely before making it available to everyone. Please click here to fill the form. Once we have enough interest, we will close the beta. There are a few precursors that we expect from beta users, and we will reach out personally and explain these before activating MTF on the account.

44 Likes
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Well, MTF rates for Zerodha definitely can’t be compared with banks. However, 12.5% p.a. for Zerodha would have been a win-win for all. @VenuMadhav

3 Likes
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Linking this for reach - MTF(Margin Trading Facility) - #69 by VenuMadhav

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So Cash Market positions MTF will get charged brokerage buy n sell side of 0.03% or Rs. 20, whichever is lower?

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Yes, that is correct.

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can you please explain your RMS in this product.
I’m asking for auto square-off strategy with proper calculation method.

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Even at Dhan, they charge ₹20 for MTF because not all MTF users are investors. Many of them are swing traders or positional traders and take positions, multiple times a quarter. I think, Zerodha is following the same philosophy.

Besides, delivery brokerage is set to increase industry wise in a few months. Get ready to say goodbye to free delivery or even ₹20 intraday, it might go up to ₹25.

All thanks to SEBI.

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@VenuMadhav I have beta-applied for MTF. Please don’t forget me in the beta round. I trade exclusively in MTF. Thanks!

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Why are details collected on a Google form and not an authenticated Zerodha website page? I can provide anyone’s client id here and enrol them for this beta? I dont feel comfortable sharing my ClientId.

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We’ll call the users on their registered contact numbers and confirm their participation before we enable MTF. If you’re still unsure about filling out the form, feel free to create a ticket on our support portal.

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Thanks for your response. I have opened a ticket with Zerodha.

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MTF option is visible on web but not on the Android mobile app?

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Yes, till closed beta is completed as it would be easy to do changes on web compared to app.

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For how many weeks Zerodha is planning for Beta program? @siva

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any plan on providing fno margin benefit if we hold underlying stock bought with MTF?

for eg: buying stock with MTF and selling future to collect premuim, which is risk free , pays for MTF interest and earns money at same time.

also how much margin do i need to buy 10lak worth of stock using MTF?
and does buying put to hedge MTF stocks prevents autosquare off?

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Also when you enable MTF, do make sure that the charges deducted for interest, gst etc is clearly visible in console for tax calculation.

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Two to four weeks.

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This is not allowed.

Depends on stock but on avg 3 to 4 times leverage for fno stocks.

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Not able to find long trades ever since I am on beta. Lol.

@siva Please do allow MTF trading on collateral margin too like Dhan, ICICIdirect and most other major brokerages, after the beta is over.

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May not be possible after beta, but yeah, eventually we will.

1 Like