New Delhi: The new-age online discount broking company Upstox (earlier known as RKSV Securities) has introduced Margin Trading Facility (MTF) which can be availed by Upstox customers real-time within seconds. This will enable investors to get instant funding anytime and anywhere to meet their margin requirements while dealing in equities.
With this, Upstox simplifies the cumbersome process for availing MTF by enabling fastest activation in just in 3 clicks. Upstox users can now activate MTF by just the clicking the activate button on their mobile app or web platform, accept terms and conditions and enter OTP received as a final step.
Upstox, thus, eliminates the unnecessary red tape subscribing to the MTF service and reduces the time taken to register through instant activation. It is also making the service cheaper by doing away with the hefty subscription fee that the market participants had to cough up earlier and is charging an optimal charge of Rs 20 a day per Rs. 50,000 of funding.
The MTF facility from Upstox will benefit investors who want to buy stocks for short duration. Positional traders, swing traders and also the investors looking for good leverage on short-term trades can now benefit from this facility.
It allows users to get a two-times leverage on buying delivery stocks. They will need to put in 50% of the funds and Upstox would fund the remaining margin requirement, of up to Rs. 5,00,000.The Upstox MTF product will enable these investors and traders to buy more or high-valued stocks and also hold on to their investments, thus increasing their absolute profits.
Elaborating on the reasons for launching the MTF facility, Upstox Founder and CEO Ravi Kumar, said: “People often miss out on golden opportunities in the market and are forced to exit their holdings for want of funding, especially in volatile market conditions like in the present. Our recent data has shown that almost 50 per cent of the traders, who buy shares and hold them, sell these shares within just 30 days. With more and more retail investors coming into the markets now, we realised there was a need for a MTF product which could be easily and instantaneously accessed from laptops or cellphones of investors to enable them to grab more opportunities.”
Upstox is a new-age discount broker that looks beyond just costs and empowers its clients with technology tools for savvier investment decisions. Its ‘zero brokerage’ model rests on prudent use of design and technology to cut costs at every level and transferring this benefit to the end customer.
The brokerage firm has witnessed at least a three-fold increase in its total client-base and turnover within a year. The pan-India client base of Upstox increased from 25,000 to 100,000 in the last two years, a growth of 300%. The revenues also increased by 200% during the same period.
Contribution of Upstox to daily notional turnover of exchanges increased to a range of Rs. 14,000 to Rs. 18,000 crore per day from around Rs. 5,000 to Rs. 6,000 crores per day in 2016.
This high-growth performance has catapulted Upstox to the league of those extremely rare capital-funded start-ups in India that turned profitable at an early stage.
Upstox entered the retail brokerage market in 2012. With a backing from Mr. Ratan Tata and venture capitalists such as Kalaari Capital and GVK Davix, Upstox has been revolutionising the concept of discount broking in India and pushing the limits of digital financial investing with innovative technology, intuitive user experience and unbeatable pricing.