Zerodha Brokerage MTF

Brokerage and MTF costs

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The total cost of an MTF position includes brokerage (typically Rs 0 on delivery for Zerodha), interest on the borrowed portion (10-14% per annum), and various charges (STT, exchange, GST, stamp, SEBI). See MTF charges on Zerodha for the full breakdown.

Quick example

For a Rs 5 lakh MTF position held for 90 days (50% borrowed = Rs 2.5 lakh):

CostAmount
Brokerage on buyRs 0
Interest on Rs 2.5 lakh at 12% for 90 daysRs 7,397
STT on sell (if at Rs 5 lakh proceeds)Rs 125
Other (exchange, GST, stamp, SEBI)~Rs 50-100
Total~Rs 7,572

For 90 days, MTF cost ~1.5% of position value.

Annual cost

For year-long MTF (Rs 2.5 lakh borrowed at 12%): ~Rs 30,000. As a % of position: ~6%.

For MTF to be cost-effective, the stock needs to appreciate by >6% per year just to cover the cost.

See also

External references

References

  1. Zerodha, MTF cost structure, zerodha.com.
  2. SEBI, MTF framework, sebi.gov.in.

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