The sharpest minds in the market know one thing—every percentage counts. When trading on margin, interest rates can quietly eat into returns. That’s why MTF on ETF options is gaining traction. This comparison provides clarity on how leading brokers compare on Margin Trading Facility (MTF) rates, enabling investors to make informed, cost-effective trading decisions.
What is MTF?
Margin Trading Facility (MTF) lets investors buy stocks by paying a fraction of the total amount. The rest is funded by the broker. Simply put, it allows you to take larger positions than your capital permits.
For example, if you want to buy ₹1,00,000 worth of shares but only have ₹25,000, an MTF account with 4x leverage can make it happen. The loaned amount accrues daily interest until the trade is squared off or the margin is repaid.
Top Brokers Offering Margin Trading Facility (MTF) – Interest Rate Comparison at a Glance
With more brokers offering competitive interest rates and feature-rich platforms, choosing the right margin trading partner has become crucial. Below is a comparison of top brokers in India, focusing on their MTF interest rates, platform strengths, and overall value for active traders.
1. HDFC Sky
HDFC Sky stands out as one of India’s most cost-effective and feature-rich MTF platforms. With an interest rate of 12% per annum, it offers the lowest borrowing cost among major brokers, ideal for both intraday and short-term traders.
●Clean, intuitive user interface with an integrated app for MTF
●Real-time access to a curated list of eligible MTF stocks
●Supports intraday, delivery, and even MTF on ETF strategies seamlessly
●Backed by HDFC Securities, ensuring credibility and security
●Smart dashboard for portfolio-level margin tracking
●Free ETF delivery trades, helping reduce overall costs
●Dedicated educational content for beginners and active traders
●Transparent fee structure and no hidden charges
●Advanced tools, including a built-in MTF Calculator, to estimate daily interest
2. Dhan
Dhan provides a variable MTF interest rate model, depending on the user’s gross holdings. This flexibility allows traders with larger portfolios to enjoy relatively lower borrowing costs. The platform is designed for quick execution and offers a clean interface suitable for active retail investors. However, the fluctuating rates may not offer consistent predictability for everyone.
●Interest rate varies from 12.49% to 16.49% p.a.
●Daily charges between ₹34 to ₹45
●Modern app interface with customisation features
●Useful for traders who maintain higher gross holdings
●Allows MTF on approved stocks with defined leverage
3. Axis Direct
Axis Direct’s MTF comes with interest rates based on your brokerage plan. This model provides some flexibility, but the rates lean toward the higher end, especially for entry-level plans. The platform supports research-based suggestions, making it a decent fit for investors who value expert insights to support their margin trades.
●Interest ranges from 13.99% to 18% p.a.
●Daily cost lies between ₹38 to ₹49
●Offers in-depth research and portfolio suggestions
●Integrated charting and advisory tools
●Suitable for moderate-risk investors seeking support
4. Zerodha
Zerodha applies a flat MTF rate of 14.6% per annum with a fixed daily charge of ₹40. It’s known for its clutter-free platform, which appeals to self-directed traders who don’t require in-app recommendations or research. The margin feature is simple to use, though advanced tools for margin tracking are relatively limited.
●Flat interest rate of 14.6% p.a.
●Daily charge: ₹40
●Clean and efficient user interface
●No integrated research or advisory tools
●Best for experienced users managing their own trades
5. INDmoney
INDmoney provides margin trading at a flat interest rate of 14.6% per annum, with a daily charge of ₹40. The platform is designed for investors who value an integrated investment dashboard combining stocks, mutual funds, and MTF. While user-friendly, it may lack some of the real-time trade optimisation features needed by frequent traders.
●Fixed interest rate of 14.6% p.a.
●Daily cost: ₹40
●All-in-one investment dashboard
●Easy to switch between asset classes
●More suited for long-term investors exploring leverage
6. Angel One
Angel One offers MTF at a flat rate of 14.99% per annum, with a daily interest charge of ₹41. The platform supports both advisory and self-directed trading. It features custom watchlists, decent analysis tools, and access to margin trading across various equities. However, its MTF rate is slightly above the market average.
Key highlights:
●Fixed interest rate of 14.99% p.a.
●Daily charge: ₹41
●Offers detailed research and stock suggestions
●Supports multiple asset classes with margin
●Functional app interface with trading features
7. Groww
Groww provides MTF services at 14.95% interest annually, with a daily charge of ₹41. It is primarily a mutual fund and equity investment platform that has added margin features. The app’s simple interface suits new investors but may feel too basic for advanced margin strategies or active trade tracking.
●Flat interest rate of 14.95% p.a.
●₹41 daily interest charge
●Clean, beginner-friendly app design
●Quick toggling between delivery and margin trades
●Ideal for casual or low-frequency margin investors
8. IDBI Direct
IDBI Direct offers a straightforward MTF structure with a fixed annual interest rate of 16% and a daily charge of ₹44. The platform is targeted more towards conservative investors and may not include many of the advanced tools or flexibility seen on modern trading platforms. Costs are on the higher side.
●Flat 16% p.a. Interest
●₹44 daily charge
●Traditional interface, suited for conservative users
●Limited in-built MTF tools
●Generally preferred by long-term investors
9. 5paisa
5paisa offers MTF at an annual interest rate of 16.4%, one of the highest rates in the market. It charges ₹45 daily. The platform is simple and functional, although MTF-specific tools are limited. Best suited for low-frequency traders who occasionally use margin but may not rely on it heavily.
●Interest rate fixed at 16.4% p.a.
●Daily interest charge: ₹45
●Simple UI with limited advanced features
●Margin toolset is not as extensive
●Better for infrequent or conservative margin use
Conclusion
Margin Trading Facility can be a valuable strategy, but it demands discipline and cost awareness. Choosing the right broker means finding a platform aligned with your financial goals.
While each broker offers unique strengths, HDFC Sky stands out for its integrated MTF app, lowest interest rate, smart trading tools, and seamless interface. For traders looking to optimise costs without compromising on features, it quietly emerges as a top contender in the increasingly competitive margin trading space.
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The financial insights and opinions expressed in this article belong solely to the author and are provided for general informational purposes only. They do not constitute financial, investment, or professional advice. We do not promote or endorse any specific investment, product, or financial strategy. Readers should seek advice from licensed financial advisors before making investment decisions.
