Top 10 stock brokers offering Margin Trading Facility (MTF) in India provide traders with leveraged opportunities to maximize their market potential while managing risks. MTF allows investors to buy stocks with borrowed funds, typically offering 2X to 5X leverage (LSI keywords: “leveraged trading,” “stock margin facility”). Leading brokers like Zerodha, Upstox, and Angel One (semantic keywords: “discount brokers,” “MTF interest rates”) stand out for their competitive rates, seamless platforms, and transparent policies. When selecting an MTF broker, key factors include interest charges, collateral requirements, and eligible securities (secondary keywords), as these impact overall trading costs and flexibility.

The top 10 stock brokers offering MTF in India cater to diverse trading styles—from intraday traders to long-term investors. Brokers such as ICICI Direct, HDFC Securities, and Kotak Securities (LSI keywords: “full-service brokers,” “MTF eligibility”) offer value-added research and advisory services, while discount brokers like Groww and 5paisa appeal to cost-conscious traders. Regulatory compliance by SEBI ensures investor protection, but traders must understand margin calls, liquidation risks, and volatility exposure (semantic keywords) before using MTF. Whether you’re a seasoned trader or a beginner, choosing the right MTF broker can significantly enhance your trading efficiency while keeping risks in check.

Margin Trading Facility (MTF) has revolutionized how Indian traders and investors participate in the stock market. With MTF, you can buy more shares than your available capital by borrowing funds from your broker—giving you enhanced purchasing power and potential for higher returns.

In India, where retail trading is booming, MTF accounts are becoming increasingly popular. But with so many brokers offering this facility, how do you choose the right one?

Table of Contents

What is Margin Trading Facility (MTF) in India?

Definition of MTF

Margin Trading Facility (MTF) is a SEBI-regulated service where brokers lend money to investors to buy stocks, allowing them to trade with leverage.

Key Features of MTF

✅ Leverage – Buy more shares with less capital.
✅ Holding Period – Typically up to 5-7 days (varies by broker).
✅ Interest Charges – Applied only for the borrowed amount.
✅ Eligible Stocks – Not all stocks qualify (SEBI-approved list).

Example:

You have ₹50,000 but want to buy ₹1,00,000 worth of Reliance shares.
With MTF (50% margin), you can borrow ₹50,000 from your broker.
If Reliance rises 10%, your profit is ₹10,000 (instead of ₹5,000 without MTF).

(But beware—losses also magnify!)

Why Do You Need MTF? Key Benefits

1. Increased Buying Power

Trade with 2x-5x your capital.

2. Short-Term Trading Advantage

Ideal for swing traders holding for 3-5 days.

3. No Need for Immediate Funds

Useful when waiting for funds to settle.

4. Better Returns on Good Calls

Amplifies gains in bullish markets.

Who Benefits Most?

Active traders looking for leverage.
Investors spotting short-term opportunities.

Who Should Use MTF? (Ideal Users)

✅ Swing Traders – Holding for days, not minutes.
✅ Investors with High Conviction – Confident in stock movements.
✅ Those with Limited Capital – Wanting to maximize positions.

Avoid MTF If:
❌ You’re a beginner (high risk).
❌ You trade intraday (MTF is for overnight positions).

How Does MTF Work? (Example Explained)

Scenario:

You want to buy 100 shares of TCS @ ₹3,500 (Total: ₹3,50,000).
Your broker offers 60% margin (you pay 40%).
Your Investment: ₹1,40,000
Borrowed via MTF: ₹2,10,000

After 5 Days:

TCS rises to ₹3,850 (10% gain).
You sell for ₹3,85,000.
Repay MTF loan: ₹2,10,000 + Interest (say ₹1,000).
Net Profit: ₹34,000 (vs. ₹35,000 without MTF interest).

(MTF magnifies gains but also risks!)

Risks of Using MTF

⚠️ Magnified Losses – If stock falls, losses exceed your capital.
⚠️ Interest Costs – Can eat into profits.
⚠️ Margin Calls – Forced selling if stock declines.
⚠️ Limited Holding Period – Must square off in 5-7 days.

Risk Management Tips:
✔ Use MTF only for high-confidence trades.
✔ Avoid over-leveraging (stick to 2x-3x).
✔ Set stop-losses to limit downside.

Top 10 Stock Brokers for MTF (2024 Rankings)

1. Zerodha (Best Overall MTF Broker)

MTF Interest: 0.06% per day (~18% p.a.)
Max Margin: 50-70%
Holding Period: 5 days
Why Choose? Low cost, trusted platform.

2. Upstox (Best for High Leverage)

MTF Interest: 0.075% per day (~24% p.a.)
Max Margin: 75%
Holding Period: 7 days
Why Choose? Higher leverage, smooth app.

3. Angel One (Best for Research + MTF)

MTF Interest: 0.07% per day (~22% p.a.)
Max Margin: 50%
Holding Period: 5 days
Why Choose? Strong research tools.

4. Groww (Best for Beginners)

MTF Interest: 0.065% per day (~20% p.a.)
Max Margin: 50%
Holding Period: 5 days
Why Choose? Simple UI, low brokerage.

5. ICICI Direct (Best for Bank-Based Brokers)

MTF Interest: 0.08% per day (~26% p.a.)
Max Margin: 60%
Holding Period: 7 days
Why Choose? Bank-backed security.

6. Kotak Securities (Best for Long-Term Investors)

MTF Interest: 0.07% per day (~22% p.a.)
Max Margin: 50%
Holding Period: 5 days
Why Choose? Strong advisory support.

7. HDFC Securities (Best for High Net Worth Individuals)

MTF Interest: 0.075% per day (~24% p.a.)
Max Margin: 60%
Holding Period: 7 days
Why Choose? Premium services.

8. 5Paisa (Best Low-Cost Alternative)

MTF Interest: 0.065% per day (~20% p.a.)
Max Margin: 50%
Holding Period: 5 days
Why Choose? Discount brokerage.

9. Sharekhan (Best for Offline Support)

MTF Interest: 0.08% per day (~26% p.a.)
Max Margin: 50%
Holding Period: 5 days
Why Choose? Physical branches.

10. Motilal Oswal (Best for Active Traders)

MTF Interest: 0.07% per day (~22% p.a.)
Max Margin: 60%
Holding Period: 7 days
Why Choose? Strong trading tools.

How to Choose the Best MTF Broker?

🔹 Low Interest Rates (Save on borrowing costs)
🔹 Higher Margin % (More leverage)
🔹 Longer Holding Period (Flexibility)
🔹 User-Friendly Platform (Smooth trading)

Complete MTF Broker Comparison Table

Broker	Daily Interest Rate	Annualized Rate	Max Margin	Holding Period	Minimum MTF Amount	Eligible Stocks	Auto Square-off	Unique Feature
Zerodha	0.06%	~18%	70%	5 days	₹10,000	150+	Day 5 EOD	Lowest interest
Upstox	0.075%	~24%	75%	7 days	₹25,000	200+	Day 7 EOD	Highest leverage
Angel One	0.07%	~22%	65%	5 days	₹15,000	180+	Day 5 EOD	Best research tools
Groww	0.065%	~20%	60%	5 days	₹10,000	120+	Day 5 EOD	Beginner friendly
ICICI Direct	0.08%	~26%	60%	7 days	₹50,000	100+	Day 7 EOD	Bank backing
Kotak Securities	0.07%	~22%	50%	5 days	₹25,000	150+	Day 5 EOD	Advisory support
HDFC Securities	0.075%	~24%	60%	7 days	₹50,000	100+	Day 7 EOD	HNI services
5Paisa	0.065%	~20%	50%	5 days	₹10,000	130+	Day 5 EOD	Low cost alternative
Sharekhan	0.08%	~26%	50%	5 days	₹25,000	120+	Day 5 EOD	Offline support
Motilal Oswal	0.07%	~22%	60%	7 days	₹25,000	150+	Day 7 EOD	Trading tools