Which Brokers Offer the Best MTF in India?

Margin Trading Facility (MTF) is becoming a necessity among investors and traders to have increased exposure to the market. Since several brokers are available with different interest rates and covering stocks, it is important to compare them to choose the most suitable platform to deal with the Margin Trading Facility. To assist you in choosing the one that best fits your needs, this guide subdivides important aspects, like leverage, margins, risk policies and pledge processes.

Key Factors That Determine the Best MTF in India

Margin Trading Facility helps traders use borrowed funds to take larger equity positions once they open Demat account and begin working with live market exposure. A strong margin trading facility setup keeps borrowing at an optimal level and ensures smooth order execution during trading.

To select the ideal MTF, you can monitor the following aspects:

• Interest Rates: Interest rates are charged daily on the borrowed amount; lower rates directly increase your potential net returns.
• Eligible Stocks List: SEBI regulates required MTFs to be offered only on a list of approved securities. They strongly prefer brokers who offer a comprehensive list of high-quality, liquid stocks that align with investors’ trading strategies. 
• Maintenance Margin Requirements: Brokers set their own margin policies, and these are subject to SEBI limits, which also include VAR and ELM margins.
• Broker's Risk Management & Margin Call Policy: Go for brokers with a clear communication mechanism and a reasonable time frame (often have up to T+5 days) to meet margin shortfalls before liquidation.
• Pledge and Unpledge Process: Investors have to pledge collateral shares to a clearing corporation. Brokers who provide a seamless and low-cost digital pleading process to investors deliver significant convenience.

5 Top Platforms for Best MTF in India

MTF platforms offer leverage to increase trading power. The best choice depends on factors like interest rates, stock selection and user experience. The table below presents five leading platforms to help you compare their offering for your trading needs.

1. Kotak Neo

Kotak Securities offers its MTF with the ‘pay later’ model. Its interest rate can go as low as 9.69% p.a. The leverage offered can reach up to 5x for more than 1,300 stocks. Moreover, there is no limit for holding positions under the margin trading facility.

Key Features:

• Up to 5× leverage on about 1,300+ stocks.
• Interest rates start at 9.69% p.a. under the ‘Trade Free Pro' plan.
• Unlimited holding period for MTF positions.
• Ability to use existing shares/ETFs as collateral.

Best for: Traders seeking high leverage with long-term flexibility and low cost.

2. ICICI Direct

ICICI Direct’s MTF offering allows you to fund positions by borrowing from the broker and offers. The funding attracts interest rates from 9.65% p.a., depending on the plan. You can hold positions for up to 360 days, and the interest is calculated on the funded amount (the portion borrowed) from T+1 day until you close the position.

Key features:

• Auto-pledge of shares bought under MTF from 24 Feb 2025, eliminating the manual pledge process.
• Facility to convert an MTF position to delivery (“Convert to Delivery” / CTD) at any time before expiry.

3. HDFC Securities

HDFC Securities offers its margin facilities through products such as ‘Buy Stocks Pay Later' (BSPL) or E-Margin/MTF. The holding period can be extended up to T+275 days. The product supports both stocks and ETFs as collateral and emphasises flexibility in execution.

Key features:

• A dedicated MTF dashboard shows available and used limits, open positions as well as days remaining until square-off.
• Alerts for pending pledge authorisation and upcoming convert-to-delivery deadlines to avoid automatic square-offs.

4. SBI Securities

SBI Securities MTFs allow a margin of about 25% and up to 4× leverage for trades. You can carry the position forward for up to 365 trading days under products like ‘E-Margin / Buy Now, Pay Later’. The platform also provides detailed risk-management information, such as margin-call and square-off rules.

Key features:

• Up to ~4× leverage with margins starting near 25%.
• Clear terms indicating brokerage of 0.50% on both buy and sell trades under the MTF product.

5. Dhan

Dhan’s MTF is preferred by investors who prefer flexibility and broad stock coverage. Higher stock options give traders more opportunities to expand their portfolios. Its interface also supports instant pledge and easy tracking for smooth execution.

Key Features: 

• Up to ~4× leverage across 1,700+ eligible stocks, giving a wide scope for investment choices.
• Unlimited holding period (in select plan) and seamless online pledge/workflow supporting flexibility.

Conclusion

MTF offerings in India vary across interest rates, leverage limits, stock coverage, and risk policies. What works for one investor may not suit another, especially given differences in holding periods, margin requirements, and operational processes like pledging and square-offs.

For example, a short-term trader may prioritise lower daily interest costs and faster square-off policies, while a long-term investor using MTF may prioritise longer holding periods and the flexibility to convert positions to delivery. The same MTF feature can feel helpful or restrictive depending on how it’s used.

That’s why evaluating how an MTF setup fits your trading style, cost sensitivity, and risk appetite matters more than choosing a single “best” platform.