Business Wire IndiaMargin Trading Financing (MTF) is a useful arrow in the quiver used in the hunt for profits in the stock market. It helps to leverage delivery trades. People can buy stocks of more value than the amount they have. The catch here is to earn a profit higher than the sum of margin, brokerage applicable and the interest incurred over the period for the leveraged position.
MTF Challenges to Overcome
Active investors need a discount broker offering MTF facility at the lowest possible interest rates. Generally, intraday traders get leverage while placing orders on their broker’s platform, however, for delivery traders, the leverage is provided through a product called MTF. Using this, a share buyer can purchase shares of higher value in Delivery by just paying the margin amount. Broker charges interest on the funded amount, as well as the brokerage on the order, placed. High brokerage costs and high MTF interest rates can add to costs depleting the profit margin whenever the position is squared off in a favorable situation. Investors can resolve this issue with one of the reputed discount brokers – Bajaj Financial Securities Ltd (BFSL).
BFSL’s MTF Facility can Help
BFSL offers an affordable subscription-based annual trading plan to reduce the brokerage and MTF interest rates. The most distinguished subscription plan – Bajaj Privilege Club is a cost-saving trading plan for seasoned traders. Here are some features of Bajaj Privilege Club (BPC) subscription-based plan.
BPC Plan Features
- One of the Lowest Brokerage: BPC subscribers pay one of the lowest brokerages as it charges a flat brokerage 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 rate in the industry for MTF – 9.25% p.a. only. Traders need to pay only Rs.25.34 per day for Rs. 1 lakh MTF. Clients can leverage their positions up to 3.5 times on delivery trades through MTF.
- No Depository Participant Account Maintenance Charges: BFSL does not charge DP AMC from BPC clients.
- Dealer Desk Support: BPC clients get the additional benefit of dedicated dealer desk support to address their queries on trade and MTF orders.
Thus, with BFSL, investors utilizing MTF can save a huge trading cost. Bajaj Privilege Club is available at annual subscription charges of Rs.9999 per annum which includes taxes. The huge savings in brokerage and the opportunities it opens to clients through low MTF interest rates assert the annual subscription charge which most seasoned traders prefer to opt for.
Other Subscription plans from Bajaj Financial Securities Limited:
Apart from BPC, investors can also choose the other subscription pack, known as the Professional Pack, offered by BFSL. Here, the annual subscription charge is Rs.2500 inclusive of taxes. The benefits offered are as below:
Brokerage: Rs. 10 per order across segments
Margin Trade Financing: 12% p.a.
Simple & Secured Platform
Bajaj Financial Securities Limited strives to build a trading ecosystem that is easy and convenient to investors. This manifests not just in a simple user interface of its trading platform that is available on web and app (BFSLTRADE), but also in its value-added services like Margin Trade Financing facility. Clients can easily place MTF orders on trading application and track the interest report in the app itself. BFSL ensures client’s transactions are safe and secured and any query is addressed through various service channels to maintain transparency in the process. Investors can open a demat & trading account with Bajaj Financial Securities Limited through 100% online process.
Investments in securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. All leveraged intraday positions will be squared off the same day. There is no restriction on withdrawal of unutilised margin amount. As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in rights and obligations statement issued by the TM. (if applicable).
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