MTF(Margin Trading Facility)

[Duck]

En Dono Brokers Ke Ek Position Carry Karke Dekhna Phir Bata Chalega…

[Duck]

0.035 Is Close To @12.8% Which Is Cheapest Ever In The Industry Obviously Without Subscription Charges Or High Delivery Charges

[Duck]

Bank Based Brokers Brokers Either Charges High Subscription Charges Or High Delivery Charges To Enable Low MTF Account

[Trader_123]

Kotak Neo charges 9.75% with additional delivery charges of 10 bps (.10) . How 12.8% is cheapest ? Same for ICICI , if you avail their prime plans the mtf charges are similar . What hidden charges are you talking about ?

[Trader_123]

Kiya hain na bhai, currently have an account with kotak neo and zerodha For Kotak neo trades i have seen the contract note and mtf charges , batao kuch which I have missed ?

[Trader_123]

Tumse to poocha nahin na …Zerodha waale se hi pooch rahe hain , kyu faltu ka gyaan de rahe ho .

[Duck]

In That Case You’re A Long Term Investor Kotak Is Good For You Because I’m A Swing Traders Zerodha Is Going To Be Cheaper For Sure, Because Kotak 0.1% On Each Side Is Still Very High For Me(Ie_ 0.2%) + 10% MTF Interests…

[Duck]

• They Are Bank Based Brokers They Don’t Have To Share Any Revenue In Their MTF Dispersal But In Case Of Zerodha They Would Have Tied Up With Some Banks To Facilitate Such Things, Let Them Charge Some 3% Commission… Still The Cheapest I Feel. @Trader_123

[Trader_123]

Yes bro whatever you are comfortable with . Was expecting Zerodha rate to be around 10.5-11 , I have most of my holding in zerodha , so it would have been easier for me.

[Duck]

You Can Move On Your Portfolio, It’s Not That Difficult…

[Abhi_001]

There is no one cheaper than Mstock, when it comes to MTF

[Trader_123]

Home page ka link du , easy rahega doosra thread padne ke liye ?

[tanwarrht]

@siva @SHUBHAM_MISHRA
Is it mandatory to close MTF positions before monthly/Quarterly payout? Please correct me if i am wrong.

[TradeB2B]

Please bring taking delivery of those stock also when we have ready to paid full amount

[siva]

@siva

This week or max next week we will release for beta.

Can check this.

MTF closed beta for TradingQ&A users

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 a…

[agrawal_prateek]

Hi @siva & @nithin,

This is My First Post and I am writing thinking that it would be read and considered . It is detailed but worth reading. have been using MTF in many platforms and explored quiet a few below are my genuine wishlist/feedback which can be added in Zerodha to make it the best platform in the industry.

Feature Wishlist

1. Option to add more cash to the particular MTF Stock Purchase to reduce interest - I have seen this option on ICICI Direct where you can add cash later on for that particular stock purchase. Currently in many other brokers we can not do that.
2. Pre Pledging of MTF Stocks - It is currently available in mStock, I have not seen this option with other Brokers.
3. Trigger Price Dsiplay for every stock - There should be a way to see the trigger price of every stock so that people know at what price the MTF stock would be squared off, People can use option 1 to decrease the trigger price. ( This is available with ICICI Direct)
4. Unlimited Holding Period of MTF Stocks - Currently many brokers have less than 1 year holding, mStock provides more unlimited period holding time for MTF Stocks. This helps investors in saving the short term capital gains tax as they can keep holding.
5. MTF Calculator - I saw only calculator on dhan website for MTF. It is important to plan your investment otherwise people don’t consider many exchange charges. I hope Zerodha would make a calculator in which person can edit a) Interest rate b) holding days c) Entry Price d) Exit Price. MTF Calculator - Calculate Interest, MTF Charges & Margin Available | Dhan
6. Margin Freeze for that investment- As MTF margin requirement for the exchange changes on daily basis for every MTF stock, many broker change the margin requirements for your holdings on a daily basis. In Kotak this margin is fixed at the purchace date and does not change afterwards. If you make a fresh purchase in this stock then the new margin would be applied.
7. Same stock different position display- This option is available in ICICI direct where if you make another MTF purchase in the same stock then the trigger price, Margin used etc are displayed as a different holdings this helps to add a margin for that particular purchase as discussed in option 1.
   8. Low interest Rates- Franky speaking 18.25% (.05 * 365) would a BIG failure for Zerodha and it wont attract any new customers. ICICI provides 9.67%. So may be Zerodha should revise their charges . Margin Trading Funding - MTF Facility by ICICI Direct

I would request other members to add the MTF features that they love.

Lets make Zerodha a best MTF solution providing platform.

[siva]

@agrawal_prateek

This is My First Post and I am writing thinking that it would be read and considered . It is detailed but worth reading. have been using MTF in many platforms and explored quiet a few below are my genuine wishlist/feedback which can be added in Zerodha to make it the best platform in the industry.

Thanks for your feedback, I am adding my colleague @VenuMadhav who leads the MTF also to let aware of your feedback. Also we will be charging only .04% per day and not .05% as you mentioned and definitely you can’t compare us with bank rates.

[VenuMadhav]

@agrawal_prateek

Option to add more cash to the particular MTF Stock Purchase to reduce interest - I have seen this option on ICICI Direct where you can add cash later on for that particular stock purchase. Currently in many other brokers we can not do that.

If you have enough cash, you can convert your MTF position into a delivery position.

@agrawal_prateek

Pre Pledging of MTF Stocks - It is currently available in mStock, I have not seen this option with other Brokers.

Requirement for the client to enter OTP to pledge is going away effective October 14, 2024. Refer circular

@agrawal_prateek

Trigger Price Dsiplay for every stock - There should be a way to see the trigger price of every stock so that people know at what price the MTF stock would be squared off, People can use option 1 to decrease the trigger price. ( This is available with ICICI Direct)

We will take this feedback

@agrawal_prateek

Unlimited Holding Period of MTF Stocks - Currently many brokers have less than 1 year holding, mStock provides more unlimited period holding time for MTF Stocks. This helps investors in saving the short term capital gains tax as they can keep holding.

We don’t intend to square off positions unless there’s margin shortfall or a complex corporate action (de-merger etc). FYI, most brokers tend to close positions for splits and bonuses too.

@agrawal_prateek

MTF Calculator - I saw only calculator on dhan website for MTF. It is important to plan your investment otherwise people don’t consider many exchange charges. I hope Zerodha would make a calculator in which person can edit a) Interest rate b) holding days c) Entry Price d) Exit Price. MTF Calculator - Calculate Interest, MTF Charges & Margin Available | Dhan

hmm, we’ll take this as feedback

@agrawal_prateek

Margin Freeze for that investment- As MTF margin requirement for the exchange changes on daily basis for every MTF stock, many broker change the margin requirements for your holdings on a daily basis. In Kotak this margin is fixed at the purchace date and does not change afterwards. If you make a fresh purchase in this stock then the new margin would be applied.

Same, margin is charged basis what was applicable on the day of trade. However, if the stock price falls that triggers an MTM call, and if the client isn’t able to fulfill, the positions will be squared off.

@agrawal_prateek

8. Low interest Rates- Franky speaking 18.25% (.05 * 365) would a BIG failure for Zerodha and it wont attract any new customers. ICICI provides 9.67%. So may be Zerodha should revise their charges . Margin Trading Funding - MTF Facility by ICICI Direct

We’re charging 0.04% day.

[TradeB2B]

@VenuMadhav you are largest - you can reduced the intrest rate to 12 % like that - if you increase then no point to have this facility - any lose for clients they need to bear both - but you dont have any loss

please look at the client level also - without client their is no broker

[VenuMadhav]

@thisisbanerjee

Can’t this be set to 12.5% by any chance?

@TradeB2B

you are largest - you can reduced the intrest rate to 12 % like that

Thanks for your feedback. One can have endless debates about how much one should charge, even in the above threads, there’s request for 12.5, 12 If it was 12.5, questions would be why can’t it be 11.5, in line with what our NBFC charges as rate of interest for loans availed. The comparisons can be endless.

We believe what we’re charging is fair, and reflects the value of the service we provide.