{"id":5379,"date":"2025-04-17T13:19:37","date_gmt":"2025-04-17T13:19:37","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=5379"},"modified":"2025-09-13T05:25:33","modified_gmt":"2025-09-13T05:25:33","slug":"introducing-slab-based-mtf-pricing-low-rates-smarter-trades","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/introducing-slab-based-mtf-pricing-low-rates-smarter-trades\/","title":{"rendered":"Introducing Slab-Based MTF Pricing: Low Rates, Smarter Trades"},"content":{"rendered":"<p><b>At Paytm Money, we\u2019re all about helping you trade better, smarter, and more cost-effectively.<\/b><span style=\"font-weight: 400;\"> That\u2019s why we\u2019re introducing a flexible, slab based\u00a0 pricing model for Margin Trading Facility (MTF), also know as Pay Later, \u2013 designed to reward you with lower interest rates and a more transparent brokerage structure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s break it down.<\/span><\/p>\n<h2><b>What\u2019s New?<\/b><\/h2>\n<h3><b style=\"font-size: 16px;\">1. Slab-Based Interest Rates (Based on Your MTF Usage):\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Tailored rates for every Trader<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-5783\" src=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Group-1597882846-1.jpg\" alt=\"\" width=\"436\" height=\"305\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Group-1597882846-1.jpg 572w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Group-1597882846-1-300x210.jpg 300w\" sizes=\"(max-width: 436px) 100vw, 436px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">So whether you are new to trading or managing large volumes, we have a rate that suits your needs and maximises your advantage. <\/span><\/p>\n<h3><b>2. Smarter Brokerage Calculation:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">We\u2019re simplifying brokerage too!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> It\u2019s now <\/span><b>0.1% of your trade value for MTF orders above Rs 20,000.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For orders below Rs 20,000 the brokerage will be calculated based on the existing brokerage, upto Rs 20.<\/span><b><br \/>\n<\/b><span style=\"font-weight: 400;\">That means <\/span><b>more clarity and fairness<\/b><span style=\"font-weight: 400;\"> across all your trades.<\/span><\/p>\n<p><strong>Let&#8217;s break it down with Examples:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s assume you are trading a stock called XYZ, currently priced at Rs. 1,000.<\/span><\/p>\n<p><b>Case 1:<\/b><span style=\"font-weight: 400;\"> You bought 10 quantities of the stock\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trade value = Rs 10,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You paid Rs 2,500 (assuming 4x leverage)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Funded amount = Rs 7,500\u00a0<\/span><\/p>\n<p><b>Charges<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest charges for 30 days @ 7.99% = Rs 60.1<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brokerage charges = Rs 20 (2.5% of trade value upto Rs 20)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total brokerage charges for 1 buy and 1 sell trade = Rs 40<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the stock rises to Rs 1100 (10% increase), then profit = 1,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net profit excluding brokerage and interest charges = 1000-40-60.1= 899.3<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net profit % with MTF = 899.3 \/ 2500 = <\/span><b>35.9%<\/b><\/p>\n<p><b>Case 2:<\/b><span style=\"font-weight: 400;\"> You bought 1000 quantities of the stock.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trade value = Rs 10,00,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You paid Rs 2,50,000 (assuming 4x leverage)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Funded amount = Rs 7,50,000\u00a0<\/span><\/p>\n<p><b>Charges<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest charges for 10 days @ 14.99% = Rs 3,080.1<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brokerage charges = Rs 1,000 (0.1% of trade value)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total brokerage charges for 1 buy and 1 sell trade = Rs 2,000<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the stock rises to Rs 1100 ( 10% increase), then profit = 1,00,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net profit excluding brokerage and interest charges = 100000-2000-3080.1= 94919.9<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net profit % with MTF = 94,919.9 \/ 2,50,000 = <\/span><b>37.96%<\/b><\/p>\n<p><b>Case 3:<\/b><span style=\"font-weight: 400;\"> You bought 10,000 quantities of the stock<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trade value = Rs 1,00,00,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You paid Rs 25,00,000 (assuming 4x leverage)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Funded amount = Rs 75,00,000\u00a0<\/span><\/p>\n<p><b>Charges<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest charges for 10 days @ 7.99% = Rs 20,034.25<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brokerage charges = Rs 10,000 (0.1% of trade value)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total brokerage charges for 1 buy and 1 sell trade = Rs 20,000<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the stock rises to Rs 1100 ( 10% increase), then profit = 10,00,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net profit excluding brokerage and interest charges = 10,00,000-20,000-20,034.25= 959965.75<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net profit % with MTF = 9,59,965.75 \/ 25,00,000 = <\/span><b>38.4%<\/b><\/p>\n<h3><em><span style=\"font-weight: 400;\">Refer the chart below to compare:<\/span><\/em><\/h3>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-5383 size-large\" src=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Refer-the-chart-below-to-compare_-1-1014x1024.png\" alt=\"\" width=\"1014\" height=\"1024\" srcset=\"https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Refer-the-chart-below-to-compare_-1-1014x1024.png 1014w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Refer-the-chart-below-to-compare_-1-297x300.png 297w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Refer-the-chart-below-to-compare_-1-150x150.png 150w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Refer-the-chart-below-to-compare_-1-768x775.png 768w, https:\/\/www.paytmmoney.com\/blog\/wp-content\/uploads\/2025\/04\/Refer-the-chart-below-to-compare_-1.png 1270w\" sizes=\"(max-width: 1014px) 100vw, 1014px\" \/><\/p>\n<h2><b>Why This Change?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Until now, all MTF users were charged a flat 11.99% p.a., and brokerage was \u20b920 or 2.5% of trade value (whichever was lower). But we understand one size doesn\u2019t fit all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This upgrade achieves two key goals:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rewards high-value and frequent traders<\/b><span style=\"font-weight: 400;\"> with better pricing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Encourages new users<\/b><span style=\"font-weight: 400;\"> to explore MTF with a low entry-point rate, making it easier for beginners to explore MTF.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\"><b>Benefits You\u2019ll Love<\/b><\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Pay Less for Leverage<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Reduced costs give you greater flexibility and improved control over your trades.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Tailored for All<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">From beginners to high-value traders, the new rates reward every level of engagement.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Smarter Use of Capital<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With MTF, buy stocks by paying just a fraction upfront and fund the rest affordably.<\/span><\/p>\n<h2><b>Ready to Make the Most of MTF?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you&#8217;re a new investor trying out MTF or a seasoned trader with a large portfolio, this feature ensures you&#8217;re always getting a good deal.<\/span><\/p>\n<p><strong>Disclaimer:<\/strong> Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit.This content is purely for information purpose only and in no way to be considered as an advice or recommendation. MTF is subject to provisions of SEBI circular CIR\/MRD\/DP\/54\/2017 dated June 13,2017 and the terms and conditions mentioned in the rights and obligations statement issued by Paytm Money Limited. Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532, Depository Participant &#8211; IN &#8211; DP &#8211; 416 &#8211; 2019, Depository Participant Number: CDSL \u2013 12088800, NSE (90165), BSE (6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms &amp; Conditions and Disclaimers visit: <a href=\"https:\/\/www.paytmmoney.com\">https:\/\/www.paytmmoney.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At Paytm Money, we\u2019re all about helping you trade better, smarter, and more cost-effectively. That\u2019s why we\u2019re introducing a flexible, slab based\u00a0 pricing model for Margin Trading Facility (MTF), also know as Pay Later, \u2013 designed to reward you with lower interest rates and a more transparent brokerage structure. Let\u2019s break it down. What\u2019s New?<a href=\"https:\/\/www.paytmmoney.com\/blog\/introducing-slab-based-mtf-pricing-low-rates-smarter-trades\/\">Continue reading <span class=\"sr-only\">&#8220;Introducing Slab-Based MTF Pricing: Low Rates, Smarter Trades&#8221;<\/span><\/a><\/p>\n","protected":false},"author":45,"featured_media":5382,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-classic-ns.php","format":"standard","meta":{"footnotes":""},"categories":[8,14],"tags":[],"class_list":["post-5379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-product-updates"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/5379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=5379"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/5379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/5382"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=5379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=5379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=5379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}