Margin Trading Facility (MTF) has become a popular tool for investors who want to take delivery positions with less upfront capital. Instead of paying the full trade value, you fund a portion while your broker finances the rest, charging daily interest on the borrowed amount.
But not all MTF offerings are structured the same.
Some platforms focus on transparency. Others compete on lower interest rates. A few stand out for stock coverage or long holding flexibility. If you’re evaluating brokers for margin trading, here is a breakdown of how leading apps differ and who they may suit best.
1. Groww
Groww positions its MTF as a clean, fully digital experience designed around cost clarity and position control. Instead of just offering leverage, the platform emphasises transparent breakdowns, showing exactly how much is investor-funded vs broker-funded, along with returns calculated on the user’s capital contribution.
What You Get?
- Leverage: Up to 4× on exchange-approved stocks
- Interest:041% per day (~14.95% annually) on funded portion
- Brokerage:1% per order
- Pledge Charges: ₹20 per order
- Holding Period: No fixed cap
Notable Differentiators:
- Live shortfall alerts to reduce auto square-off risk
- Easy conversion from MTF to delivery
- After-Market Order (AMO) support
- Fully online activation and CDSL pledge process
- Upfront cost disclosure before order placement
Groww can be a strong choice for investors who value clear cost visibility, built-in risk alerts, and a clean interface while actively managing leveraged positions.
2. Zerodha
Zerodha integrates its MTF directly within the Kite platform, keeping the structure performance-focused and minimal.
One key distinction: MTF is currently available only for NSE-listed stocks.
What You Get?
- Leverage: Up to 5× (stock-dependent)
- Interest:04% per day (~14.6% annually)
- Brokerage: ₹20 or 0.3%, whichever is lower
- Pledge Charges: ₹15 + GST per ISIN
- Holding Period: No fixed limit
Zerodha’s MTF may suit investors who prefer a streamlined interface and higher leverage options, particularly if their trading activity is focused primarily on NSE-listed stocks.
3. Upstox
Upstox uses a slab-based borrowing structure, charging ₹20 per day for every ₹40,000 borrowed. This model simplifies interest estimation.
What You Get?
- Leverage: Up to 4×
- Interest Model: ₹20 per day per ₹40,000 borrowed
- Holding Period: Up to 365 days
- Pledge Charges: ₹20 per stock
The predictable pricing format and defined holding period may suit investors who prefer clarity around daily borrowing costs.
4. Angel One
Angel One provides MTF across a wide list of approved stocks and occasionally introduces promotional interest campaigns.
What You Get?
- Leverage: Up to 4×
- Interest: 041% per day
- Brokerage:1% or ₹20 (lower of the two)
- Pledge Charges: ₹20 + GST per ISIN
- Holding: No fixed duration
Its structure works for investors looking for flexibility combined with periodic rate-based incentives.
5. Dhan
Dhan’s MTF is integrated directly into its trading dashboard, emphasising speed and control.
What You Get?
- Leverage: Up to 4×
- Interest:04% per day (~14.6% annually)
- Brokerage: ₹20 per order
- Pledge Fees: ₹12.5 + GST per stock
- Holding: No fixed limit
Its interface highlights live margin usage, stock eligibility, and borrowing costs — making it suitable for traders who frequently adjust positions.
How to Choose the Right MTF Platform?
Instead of focusing only on interest rates, consider:
- Holding Duration: Longer holding means higher accumulated interest
- Cost Transparency: Can you clearly see funded vs own capital?
- Stock Coverage: Does the broker support the stocks you trade?
- Pledge Charges: Small differences can add up over multiple trades
- Risk Monitoring Tools: Alerts and margin tracking matter
Margin Trading Facility enhances buying power, but leverage works both ways — gains can grow quickly, and losses can compound just as fast. Also, the borrowing costs accumulate daily, hence, investors must track positions carefully and manage risk proactively.
Among the options discussed, some platforms stand out for transparency, some for broader stock access, and others for predictable cost models. The ideal choice ultimately depends on how actively you trade, how long you plan to hold positions, and how comfortable you are managing leveraged exposure.
Margin trading works best when paired with clear risk management — not just higher buying power.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
