Firstock MTF Review

• High Leverage/Buying Power: Investors can buy stocks with reduced upfront capital. While not explicitly stated in the results, typical, competitive MTF products allow up to 4x or 5x leverage.
• Long-Term Holding Period: Unlike intraday trading (MIS), which must be squared off the same day, MTF positions can be carried forward for months or even years, provided the interest and margin requirements are maintained.
• No Pledging Charges: Firstock offers instant pledging at no cost, removing additional charges for enabling the facility.
• Low Interest Rates: The service involves interest paid daily or monthly on the borrowed funds.
• Dividend & Corporate Actions: As the owner of the stock, you receive all benefits, such as dividends and corporate actions, even though the shares are pledged.
• "M" Tagged Positions: Once a stock is purchased under MTF, it is visible in the holdings section with a special "M" tag.
• Instant Pledging (DDPI): If an account has a Depository Participant (DP) or Power of Attorney (PoA) / Digital Delivery Procedure Instruction (DDPI) enabled, MTF can be activated and used instantly.

Firstock MTF Activation Process:

• Log in to Firstock trading account.
• Accept the MTF Terms & Conditions.
• Enable MTF product type in settings.

MTF Pledging & Unpledge Process

• Buy stock using MTF product type.
• Receive pledge request via CDSL/NSDL (OTP-based authorization).
• Authorize before T+1 (9 PM).
• Pledge Charges: ₹15 per ISIN per day.
• Unpledge Charges: ₹15 per ISIN per day.

Check Firstock MTF Stock Positions

• Go to Holdings → Filter by Product Type → Select MTF.
• Check the funded amount and interest accrued.

How to Convert MTF to Delivery?

• Add required funds to your trading account.
• Select the MTF position.
• Choose “Convert to Delivery.”
• Broker releases pledged shares after repayment.

Pros

• High Leverage: Firstock provides a 4X instant wallet boost for MTF, allowing users to buy stocks by contributing as little as 20% of the trade value.
• Competitive Interest Rates: MTF funding is available at competitive rates, specifically mentioned at 0.0329% per day (approx. 14.6% per annum) in some instances.
• Zero Brokerage on Delivery: Since MTF is used for delivery-based trades, it benefits from Firstock’s zero brokerage policy on equity delivery.
• Wide Eligibility: A large number of stocks are available for trading with MTF.
• Modern Platforms: Accessible through a mobile app ("Firstock - Trade & Invest"), a browser-based web platform, and a desktop application (.exe) that offer real-time data and advanced charts.
• No Hidden Costs: Generally, no account opening or annual maintenance charges (AMC).

Cons

• Interest Cost: Borrowed funds accrue daily interest, which can erode profits if positions are held for an extended period.
• Mandatory Pledging: Stocks bought under MTF must be pledged to the broker. If the user forgets to pledge, the transaction may not be treated as MTF, which could result in immediate payment obligations.
• Risk of Liquidation: If the stock price falls and the margin requirement is not met, the broker may sell (square off) the shares without notice to recover the loan.
• Not for Beginners: MTF involves high leverage, which can multiply losses during market volatility.
• Intraday Square-off Time: While not specifically for MTF, other services have a 3:00 PM square-off time, which is earlier than some competitors (3:15 PM).

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