Pune, Maharashtra, India:
Margin Trading Funding (MTF) is a useful arrow in the quiver used in stock market profit hunting. It helps to take advantage of delivery trades. People can buy stocks worth more than the amount they own. The catch here is making a profit greater than the sum of margin, applicable brokerage and interest incurred over the period for the leveraged position.
MTF challenges to overcome
Active Investors Need a Discount Broker Offer MTF installation at the lowest possible interest rates. Typically, intraday traders get leverage when placing trades on their broker’s platform, however, for delivery traders, leverage is provided through a product called MTF. Through this, a stock buyer can purchase higher value stocks in Delivery by paying only the margin amount. The broker charges interest on the funded amount, as well as brokerage on the order placed. High brokerage fees and high MTF interest rates can increase costs and reduce profit margin each time the position is settled in a favorable situation. Investors can solve this problem with one of the reputable discount brokers – Bajaj Financial Securities Ltd (BFSL).
BFSL’s MTF installation can help you
BFSL offers an affordable annual subscription-based trading plan to reduce brokerage and MTF interest rates. The Most Distinguished Subscription Plan – Bajaj Privilege Club is an economical trading plan for seasoned traders. Here are some features of the Bajaj Privilege Club (BPC) subscription-based plan.
BPC plan features
- One of the lowest brokers: BPC subscribers pay one of the lowest brokerage fees as it charges a flat fee of Rs. 5/- per order for day trading, F&O and Delivery.
- Lowest interest rates: BPC offers the benefit of one of the lowest interest rates in the industry for MTFs – 9.25% per annum only. Traders have to pay only Rs.25.34 per day for Rs. 1 lakh MTF. Clients can leverage their positions up to 3.5x on delivery trades through MTF.
- No Participant Deposit Account Maintenance Fee: BFSL does not charge DP AMC to BPC customers.
- Dealer Support: BPC customers also benefit from dedicated dealer support to answer their questions about trade and MTF orders.
So, with BFSL, investors using MTF can save huge trading costs. Bajaj Privilege Club is available at an annual subscription fee of Rs.9999 per year inclusive of tax. The huge savings in the brokerage and the opportunities it opens up for clients with the low MTF interest rates make the annual subscription fee that most seasoned traders prefer to opt for.
Other subscription plans of Bajaj Financial Securities Limited:
Besides BPC, investors can also choose the other subscription pack, called Professional Pack, offered by BFSL. Here, the annual subscription fee is Rs.2500 including tax. The benefits offered are as follows:
Brokerage: Rs. 10 per order on all segments
Margin trade funding: 12% per year
Simple and secure platform
Bajaj Financial Securities Limited strives to create a simple and convenient trading ecosystem for investors. This not only manifests in a simple user interface of its web-based and app-based trading platform (BFSLTRADE), but also in its value-added services such as margin trade finance facility. Clients can easily place MTF orders on the trading app and follow the interest ratio in the app itself. BFSL ensures that customer transactions are safe and secure and any queries are handled through various service channels to maintain transparency in the process. Investors can open a demat & trading account with Bajaj Financial Securities Limited through a 100% online process.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. Brokerage will not exceed the limit prescribed by SEBI. All leveraged intraday positions will be settled on the same day. There are no restrictions on withdrawing the amount of unused margin. Subject to the provisions of the SEBI circular CIR/MRD/DP/54/2017 of June 13, 2017 and the terms and conditions mentioned in the declaration of rights and obligations issued by the TM. (if applicable).