18% p.a. applies to utilized MTF margin
Flattrade currently publishes an MTF charge of 18% p.a. for utilized margin. For journaling, the funded rupee amount and time outstanding are therefore more useful than the headline purchase value.
For Flattrade TradersMTF trading journal for flattrade traders
See real profits, after all MTF costs
QbarTrade → MTF costs + fees + actual net P&LBreaks down interest, fees and other trade costs to show what you actually take away.
Broker → Position + P&LExecutes & displays the position and shows gross P&L.
QbarTrade view
Shows Net P&L after MTF costs
ATHERENERGLong
Net Qty: 240NSE 1,412.00 +24.50 (1.77%)
Gross P&L
Rs8,400.00Total fees
Rs254.37MTF interest
Rs1,340.73MTF Interest (Broker)Broker
Rs1,340.730.04% • 57 days
P&L (After all charges)Net
Net P&L (After fees & MTF interest)
Rs6,804.90Impact
18.99%MTF charges and Net P&L shown upfront.Track true profit after funding cost.
Broker view
Shows Gross P&L only
ATHERENERGFlattrade
NSE 1,412.00 +24.50 (1.77%)Event
Investment
Invested89,300
P&L+8,400.00
Qty.100
Avg. price.Rs893.00
Avg Exit PriceRs977.00
Shows only gross P&L.MTF interest & charges hidden.
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How it works
Flattrade MTF combines zero brokerage with a separate funding cost
Flattrade's MTF is a funded delivery product. The amount you need to bring depends on the stock's MTF margin requirement, while the remaining utilized margin is funded by the broker. That funding is a different cost from brokerage and deserves its own line in the journal.
₹0 brokerage does not make MTF funding free
Flattrade currently lists equity brokerage at ₹0. MTF interest, statutory levies, DP charges and security-movement charges remain separate, so net cost analysis should not stop at the brokerage line.
The upfront contribution is stock-specific
Flattrade's current risk policy uses VaR, ELM, the applicable margin rate and a 25% floor when determining MTF margin. That means two purchases of equal value can require different client capital and produce different utilized funding.
Funding rates, risk margins and charges can change. Confirm current Flattrade terms before using any estimate for a live position.
The blind spot
The cheapest order can still become an expensive funded hold
Flattrade's zero-brokerage model makes execution cost easy to understand. MTF introduces a different set of numbers: utilized funding, required margin, pledged securities, daily margin reporting and the time a position remains financed.
Zero brokerage and zero financing cost are different things
A Flattrade equity order can have ₹0 brokerage while the MTF position still accumulates funding cost. If the journal records only execution charges, the biggest time-dependent cost of a long funded hold can disappear from strategy review.
Your MTF cash and margin state can move separately
Flattrade provides a separate MTF fund-transfer workflow between Cash and MTF. That makes account balance, usable MTF margin and the funding attached to an individual position separate pieces of information that are worth reconciling in the journal.
A margin call changes the position even if price never hits your stop
Flattrade's risk policy allows action when required MTF margin is not maintained, including liquidation of funded shares or pledged collateral. That is a capital-management event and should be logged alongside the price thesis, not treated as unrelated account administration.
The fix
Build the Flattrade MTF record around utilized funding and margin events
A useful Flattrade MTF journal should explain how much broker capital was used, how long it stayed outstanding, what margin was required and what happened when collateral or account funding changed. QbarTrade's MTF workflow gives those fields a position-level home beside the trade notes and outcome.
Keep broker funding separate from your own capital
Record the purchase value, your required contribution and the amount actually funded. That gives the 18% funding rate a real rupee base and lets you compare positions with different MTF margins correctly.
Mark cash transfers, collateral changes and shortfalls
A cash-to-MTF transfer, new pledge, unpledge or margin call changes how the trade is financed. Logging those moments makes it easier to explain why capital usage changed between entry and exit.
Judge the setup after carry and security-movement costs
Price P&L is only the market result. Add estimated funding, pledge or unpledge fees, DP costs and applicable statutory charges before comparing one Flattrade MTF setup with another.
Using it well
Three Flattrade MTF checks that belong in a funded-trade review
Flattrade allows MTF positions to remain open for a long window when margin is maintained. That makes duration, daily margin state and the pledged status of the position especially important when you review whether the funding was worth using.
A 365-day limit is not a 365-day target
Flattrade currently permits MTF holding for up to one year when margin requirements are met. Compare planned duration with actual funded days so a swing trade does not quietly become a long-term interest bill.
Compare the journal with Flattrade's daily MTF margin report
Flattrade's current risk policy says an MTF margin report is sent while positions remain open. Use that report to reconcile required margin, funded stock and any change in your available cushion.
Treat pledge and corporate-action changes as position events
Pledged MTF shares can behave differently around bonus shares, splits, rights and buybacks. Record security-state changes and any unpledge or full-payment decision so the journal reflects more than just price movement.
FAQ
Flattrade MTF interest, margin, holding period and pledge questions
What is Flattrade MTF?
Flattrade MTF, or Margin Trade Funding, is a delivery funding product. You contribute the required margin for an eligible equity position and Flattrade funds the remaining amount, subject to the stock's applicable MTF margin and the broker's risk rules.
What is the Flattrade MTF interest rate?
Flattrade currently publishes an MTF funding charge of 18% p.a. on utilized margin. The useful journal number is therefore the broker-funded or utilized amount carried by the position, not simply the full purchase value.
How do I calculate Flattrade MTF interest?
Start with the utilized MTF funding amount, apply the applicable annual funding rate for the number of days the amount remains funded, and then add other applicable transaction, pledge, DP or regulatory charges. For journal review, keep the daily carry estimate attached to the trade until the funded amount is cleared.
Does zero brokerage mean Flattrade MTF has no cost?
No. Flattrade currently offers zero brokerage on equity trades, but MTF funding itself carries interest. Statutory charges, pledge or unpledge charges, DP charges and certain support or risk-management charges may also apply depending on the transaction.
What margin is required for Flattrade MTF?
Flattrade's current risk policy determines MTF margin using stock-specific risk measures. It uses the higher applicable requirement based on VaR and ELM, the applicable margin rate, or a 25% floor. The exact amount can therefore differ by stock and can change with risk conditions.
How long can I hold a Flattrade MTF position?
Flattrade currently states that an MTF position may be held for up to 365 days, provided the required margin continues to be maintained. A long permitted holding window does not remove the funding cost, so the journal should keep carry visible throughout the position.
What are Flattrade MTF pledge and unpledge charges?
Flattrade currently lists margin pledge, repledge and unpledge charges at ₹20 + GST per scrip request. These costs matter when reviewing MTF positions that require collateral or security movement.
Do I need DDPI to activate Flattrade MTF?
Yes. Flattrade states that DDPI is mandatory for MTF activation. The current DDPI charge is ₹175, inclusive of GST, and Flattrade says MTF activation can take up to 48 hours after the enablement process is completed.
What happens if I have a Flattrade MTF margin shortfall?
Flattrade's risk policy allows margin calls and liquidation of funded shares or pledged collateral when required margin is not brought in on time. A trading journal should record the shortfall date, required margin, funds or collateral added, and any reduction or liquidation of the position.
What should a Flattrade MTF trading journal track?
Track purchase value, your own margin, utilized funding, holding days, estimated funding cost, MTF margin requirement, pledge or unpledge charges, margin-call events, corporate-action changes and final net P&L. That creates a position history that is much more useful than gross price P&L alone.
Flattrade MTF journal
Zero brokerage is only one line of the MTF cost.
Keep utilized funding, days carried, required margin, pledge events, charges, notes and net P&L together in one review.
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