Are you curious to know about the Groww MTF charges and the associated interest rate? If so, you will get complete information here on this very subject.
First of all, we make it clear that Groww doesn’t offer margin trading facility (MTF) to its users. So, there is no question of Grow MTF interest rate while using the app.
However, there are many stockbrokers in the market that provide the MTF facility for trading. If you opt for margin through them, you need to open a demat account to obtain funding to deal with the situation of cash shortfall.
Margin allows users to get wealth for a short term and leverage the market position to make profit. Let’s understand this with an example given below.
Suppose Mr Suresh buys a stock for Rs. 100 by paying in cash and the stock price shoots to Rs. 120 at the time of squaring-off. Now, in this case, his profit would be 20%.
However, if he goes to purchase the same stock with the help of margin facility and just pays Rs. 60 in cash, he would earn a profit of 60%. Isn’t it a big jump in the overall profit?
Regarding MTF charges, users need to pay the usual equity delivery charge. Also, they need to pay an interest cost which depends on the amount debited on the trading account.
We must tell you that e-margin trading is also available for traders to buy stocks with a payment of around 25-45% of the overall amount.
In a nutshell, we would conclude that you need not worry about Groww MTF charges and interest rate as the stockbroker doesn’t provide this service. So, you only need to care about other Groww charges that you are subjected to pay.
If you really want to opt for MTF facility, you can choose other similar platforms to use it by paying a certain amount of charges (which varies from one platform to another).
Does the stock market seem interesting to you? If yes, start your journey in this area by filling the form given below. Our support staff will reach out to you for opening your demat account in no time.