TradeSmart MTF Review

• Up to 4X Leverage: Trade with higher exposure by paying only the required margin amount.
• Cash + Collateral Support: Use available cash or pledge stocks as collateral to take MTF positions.
• Trade Now, Pay Later: Buy stocks instantly and pay interest only on the amount you fund.
• 1800+ Eligible Stocks: A wide range of approved NSE equity delivery stocks available under MTF.
• Instant Funding: Get immediate funding support once the MTF order is placed.
• Extended Holding Period: Hold positions for a longer duration as long as margin requirements are maintained.
• SEBI-Regulated Facility: Fully compliant with SEBI margin trading guidelines.
• Maximum Exposure up to ₹50 Lakhs: Clients can avail MTF positions up to ₹50 lakhs, subject to eligibility.
• Applicable Only for Equity Delivery: Available only for NSE equity delivery trades, not for intraday or derivatives.
• Risk-Based Monitoring: Positions may be squared off in the event of a margin shortfall, corporate actions, or if the stock is removed from the eligible MTF list.

Steps:

1. Log in to TradeSmart Web or Mobile App.
2. Search for an eligible stock (Equity Delivery only).
3. Select the Margin Trading Facility (MTF) option while placing your order.
4. Pay the required 25% margin.
5. TradeSmart funds the remaining amount instantly.
6. Hold the shares as long as margin requirements are maintained.

TradeSmart MTF Activation

1. Log in to the TradeSmart mobile app.
2. Go to the Menu and select Reports.
3. Click on the three-line icon (top left corner) and choose MTF.
4. Read the terms and conditions carefully and accept them.
5. Click on the Enable button.
6. Enter the OTP received on your registered mobile number and verify it.
7. You will receive a confirmation email once activation is successful.
8. The MTF facility can be used from the next trading day after activation.

Eligibility & Requirements

To use TradeSmart MTF, you must:

• MTF is available only for NSE equity delivery trades (not applicable for intraday, F&O, or currency segments).
• Client must have an active TradeSmart trading and demat account.
• The equity segment must be activated in the trading account.
• POA or DDPI must be enabled to use the MTF facility.
• Client must be KYC compliant.
• Acceptance of the MTF agreement online is mandatory.
• Trades must be placed only in stocks approved under the MTF stock list.
• The required margin must be maintained at all times to continue holding MTF positions.

Pledging Shares for MTF

1. Log in to the TradeSmart Mobile App using your credentials.
2. Navigate to Portfolio > Holdings > Pledge.
3. Select the securities and enter the quantity you want to pledge.
4. Click on the Pledge button to submit the request.
5. Authorise the request using the OTP received on the CDSL Margin Pledge Verification page.
6. Once authorised, the collateral margin is credited and available for MTF trading.

Unpledging Shares for MTF

1. Log in to the TradeSmart Mobile App.
2. Go to Portfolio > Holdings.
3. Click on the Pledge icon.
4. View the list of pledged shares.
5. Select the stock you want to unpledge.
6. Click on Unpledge, enter the quantity, and confirm the request.
7. The unpledge request is processed by the next working day.

Note: You can also sell pledged shares directly in the market. Once sold, they are automatically unpledged.

Pros

• Up to 4X leverage on equity delivery trades.
• Unlimited holding period, giving flexibility compared to brokers with fixed MTF tenure.
• 1800+ MTF‑eligible stocks, enabling diversified strategies.
• Cash + collateral support for efficient capital usage.
• Flat ₹15 brokerage per order, simplifying cost expectations.
• Instant funding and integrated app/web experience.

Cons

• High effective annual interest (18% p.a. at 0.049% per day), especially for long‑term holds.
• Interest on entire purchase value when using only collateral.
• Margin call risk and possibility of forced square‑off if shortfalls aren’t met.
• Requires active monitoring, not ideal for set‑and‑forget investors.
• Pledge/unpledge and DP costs (not clearly detailed on the landing page) may add to overall cost.

TradeSmart Margin Trading Facility (MTF) is designed for investors who want to increase their buying power with limited capital. With up to 4X leverage, instant funding, 1800+ eligible NSE stocks, and support for both cash and pledged collateral, it offers flexibility for equity delivery traders. The facility includes unlimited holding (subject to margin maintenance) and a transparent daily interest rate of 0.049% on the funded amount. However, since leverage increases risk, traders must actively monitor positions and maintain required margins to avoid square-offs.

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