How does brokerage affect your MTF costs?

Your total MTF cost has two parts: brokerage, charged per order, and interest, charged daily on the amount Rupeezy funds. Rupeezy's two MTF plans trade one off against the other — one charges more brokerage for less interest, the other charges less brokerage for more interest.

How brokerage differs between the plans

  • Investor Plan — 0.2% of the order value, per order.
  • Trader Plan — a flat ₹20, per order.

These work out to the same brokerage at an order value of ₹10,000 (0.2% of ₹10,000 = ₹20). Below ₹10,000, the Trader Plan's flat fee costs more in brokerage; above ₹10,000, the Investor Plan's percentage costs more in brokerage.

Why brokerage isn't the whole picture

Brokerage is a one-time cost per order. Interest accrues every day you hold the funded amount. The Investor Plan's lower interest rate (10.99% p.a. vs. the Trader Plan's 14.99% p.a.) usually makes it the cheaper plan overall the longer you hold a position — even on a large order where its brokerage costs more — because the interest saving keeps adding up. For a short hold, the Trader Plan's flat, often-lower brokerage can work out cheaper since interest has less time to accumulate. See What is Rupeezy's MTF interest? for how the daily interest itself is calculated.

Which plan should I pick?

It depends on your order size and how long you typically hold. See Does Rupeezy offer lower interest rates for MTF? for the plan comparison and how to switch.