May 21, 2026 | 9 min read
What is the difference between Delivery and Pay Later (MTF) on m.Stock?
Ready to begin your trading journey with m.Stock? The simplest, most direct way is delivery trading, in which you buy shares using available funds. But what do you do when you have limited funds but spot good market opportunities? That is where Pay Later (MTF) comes in.
To help you understand these two product types better, let us break down MTF, its meaning and the difference between MTF and delivery trading on m.Stock.
What is delivery investments on m.Stock?
Delivery is the traditional way to buy shares. In this option, you buy shares by paying the full amount using the funds available in your account and the shares are then transferred to your demat account post settlement.
You can hold these shares in your account for weeks, months or even years. m.Stock offers unlimited equity delivery orders at ₹0 brokerage.
Key features of delivery trades
- Full capital commitment - You pay the full amount for the shares directly from your trading account using your own money.
- Full ownership - Once you buy them, you legally own these shares and can hold, sell or pledge them for additional margin anytime.
- ₹10 brokerage - m.Stock charges flat ₹10 per delivery order, meaning you don’t have to pay different brokerage fee when you buy or sell shares.
Pros of delivery trades
- It is a low-risk investment product because you only use your own money and do not take on any borrowing risk.
- You have full ownership of the shares, which means you receive dividends, voting rights and other shareholder benefits.
- Since you are not borrowing, you do not pay interest.
- ₹10 brokerage with m.Stock makes long-term investing more cost-efficient.
Cons of delivery trades
- You may miss out on the opportunity to buy large quantities of a certain stock due to limited capital availability.
What is Pay Later (MTF)?
Pay Later (MTF), or Margin Trading Facility, is an exchange-approved, delivery funding offered by m.Stock to help you maximise your buying power.
With this service, you can buy stocks by paying only a fraction of the total investment value while m.Stock provides the remaining funds.
Key features of Pay Later (MTF)
- More buying power - m.Stock provides funding for up to 80% of the total trade value, letting you buy more shares.
- 1,100+ approved stocks – With Pay Later (MTF), you get access to a curated list of over 1,100+ approved stocks. This makes it simple to pick and invest from a wide range of stocks.
- Unlimited holding period - You can hold the shares for an unlimited period, provided you maintain the required margin level consistently.
- Pledged security - The shares you purchase act as collateral until you repay the funded amount and interest accrued.
- m.Stock MTF charges - m.Stock applies a ₹10 brokerage fee on all trades.
Pros of Pay Later (MTF):
- You can easily choose from over 1,100+ stocks approved for the Pay Later (MTF) facility.
- Interest ranges between 8.99% to 14.99% p.a., depending on your funding lumpsum.
- You can hold your position for as long as you maintain the required margin, with no restrictions.
- Pay Later (MTF) on m.Stock is available without any subscription fee, making it simple and cost-effective for you to access funding and buy shares.
Cons of Pay Later (MTF):
- While MTF may help you generate higher profits due to higher investment value, in case the market moves against your position/outlook, you may face equivalent loss as well.
Key differences between Delivery trades and Pay Later (MTF) trades:
Product | Delivery | Pay Later (MTF) |
|---|---|---|
Capital funding | You use 100% of your own capital to buy shares. There is no funding or borrowed funds from m.Stock; you pay the full amount upfront. | Pay Later (MTF) only requires an initial 20% contribution of the trade value from you, with the remaining 80% capital funded by m.Stock. This contribution split varies from stock to stock. |
Interest charges | You pay no interest charges because you make all purchases with your own capital. | You must pay interest on the funding provided and the m.Stock MTF charges vary by funding slab, starting at 8.99% p.a. for funding above ₹5 crore. |
Brokerage | m.Stock applies a ₹10 brokerage fee on all trades. | When you trade equity shares via Margin Trading Facility, m.Stock charges a nominal flat brokerage fee of ₹10 for each order. |
Ownership | You secure complete ownership of the shares which remain fully accessible in your demat account. | The shares purchased are typically pledged to m.Stock as collateral against the funded amount until the funding is fully repaid. |
Holding Period | You benefit from an unlimited holding period for your shares, supporting long-term investment strategies. | You benefit from an unlimited holding period for the shares, provided you consistently meet the mandated margin requirement for your stocks, based on the total value of the shares. |
Which one is better: Delivery or Pay Later (MTF)?
The choice between Delivery and Pay Later (MTF) in the share market depends solely on your financial goals, the amount of risk you can tolerate, and your investment approach.
- If you want steady, long-term growth and you have enough capital, placing delivery trades is an ideal choice.
- If you have limited funds but want to make the most of the growing market opportunities, Pay Later (MTF) is a great way to do so. However, you must remain mindful of how the funded amount and interest may affect your potential returns.
Example for Delivery and Pay Later (MTF) trades on m.Stock
Suppose you hold ₹1,00,000 capital and want to buy a stock priced at ₹200.
Delivery Trade
Pay Later (MTF) Trade
*Note: These calculations are solely based on basic interest deductions. The actual calculations and answers may vary depending on the other applicable charges on these transactions.
Conclusion
Both delivery and Pay Later (MTF) give you access to shares, but how you pay, the expenses you incur, and the leverage available differ.
When deciding between the two, always assess your financial objectives, capital size, market knowledge and risk tolerance to make the right choice.
Trading requires equal consideration of risk and rewards. If you are ready to start your trading journey, open your demat account with m.Stock today!
Also Read: Difference Between Intraday Trading & Delivery Trading | m.Stock
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