In today’s fast-paced stock market, you need a Demat account to hold and trade stocks electronically. But if you want to really boost your trading potential, adding Margin Trading Facility (MTF) can make a big difference. MTF lets you buy more shares than you can afford by borrowing money from your broker at a cheap interest rate.
Why should you open a demat account?
An open Demat account keeps your stocks, bonds, mutual funds, and other securities in digital form, which means you don’t have to worry about losing or stealing actual certificates. It gives:
- Better security and simple access
- Easier transactions and managing your portfolio
- The ability to use securities as collateral for loans or marginsRequired Documents for Opening a Demat Account:
- PAN Card (required)
- Aadhaar Card (for e-KYC)
- Proof of a bank account
- Proof of income (if you trade in derivatives)
Kotak Securities doesn’t charge any AMC fees (with some limitations) and has good plans like Trade Free Youth (for anyone under 30) or Trade Free Plan.
What does Margin Trading Facility (MTF) mean?
MTF, or Pay Later, lets you buy stocks by paying only a small part of the whole value up advance (as little as 20–25%). Kotak Securities pays for the rest and charges a modest interest rate.
For example: Want to buy stocks worth ₹1,00,000 but only have ₹20,000? With MTF, you may borrow five times as much money. You pay ₹20,000, and Kotak pays ₹80,000. Your gains go up if the stock goes up, but so do your losses.
What MTF can do for your Kotak Demat Account?
Up to 5x Leverage: You can trade more stocks than you could before on 1500+ equities.
Unlimited Holding Period: You don’t have to square off; you can hold as long as you like.
Cashless Trading: Use the shares and ETFs you already own as collateral in your Demat account.
Low Interest Rate: As low as 9.69% per year (with the Trade Free Pro plan).
Expert Help: Get Kotak’s research team’s monthly picks for MTF.
How to Turn on and Use MTF in Kotak Securities?
After you open your Demat account:
- Log in to the Kotak Neo app or website.
- Click on Account Details, then Products, then Pay Later (MTF), and finally Activate.
- You can either accept the terms or email [email protected] with your client code.
- Choose “MTF” as the type of product when you place a buy order.
- If you’re using collateral, pledge shares.
- Shares bought through MTF are instantly tagged and committed as collateral.
- Start Trading Right Now
Kotak Securities’ Demat account is the first step to wise investment. Adding MTF makes it even better for bigger deals. Get expert advice, innovative platforms like Kotak Neo, and no brokerage fees on delivery (terms apply).
Are you ready to take advantage of your trades? What are you waiting for? You can now open your Demat account and look around at the MTF features.