List of brokers with highest leverage in India

In today’s dynamic stock market environment, leverage has become a crucial tool for traders aiming to maximise capital efficiency. Leverage allows traders to trade larger positions than their capital, especially in intraday trading. With the rise of modern trading platforms and digital-first solutions, selecting the right trading app with high leverage has become a key decision for Indian traders. When leverage is employed with discipline, it can significantly enhance capital efficiency, but without a plan, it can erode all the capital.

In this blog, we will explore how leverage works in India's regulated framework and the brokers who are currently offering the highest leverage to trade in the Indian stock market.

How Leverage Works?

Leveraging in stock trading involves buying on margin using the borrowings obtained from the broker in order to make larger investments that exceed the trader's capital. The leverage varies depending on the stock traded. Typically, the exposure is estimated at 3x to 5x in intraday trading. For example, a trader who has 1 lakh in his account and 5x leverage can either sell or purchase stocks worth ₹5 lakh in one session. The broker funds the remaining balance and either squares off the position by the close of the day or accrues interest in case the position is held overnight.

SEBI has limited the maximum leverage that brokers can provide to 5x for intraday equity trading, which implies that traders will have to maintain a minimum initial margin of 20% of the overall transaction value. There is no leverage offered for equity F&O, currency, and commodity segments, and all brokers can offer the same maximum intraday leverage.

Top 5 Brokers with Highest Leverage

Here is the list of the highest intraday leverage brokers to help you.

Dhan

Dhan offers 4x leverage on more than 1700 stocks and MTF trading with just 12.49% p.a., or 0.0342% per day, which is one of the lowest margins in the country. Its advanced margin calculator shows traders the precise exposure before each trade, which helps them avoid getting over-leveraged during choppy markets.

Zero AMC charges, flat ₹20 per trade, and a seamless app interface make it a suitable choice for active day traders who have positions in equities and derivatives markets (NSE/BSE). It offers one of the best intraday trading app.

Upstox

Upstox provides intraday leverage up to 4x and MTF leverage of 4x, and allows holding positions up to 365 days. Upstox Pro provides a real-time margin calculator feature that lets traders calculate margins in real time before making any trades, and that can be helpful while comparing brokers for the highest intraday leverage. There is a flat rate of ₹20 brokerage on every order.

Zerodha

At Zerodha, you get 5x intraday leverage on 1100+ securities that qualify through MIS/CO, needing just 20% upfront margin. It means that with ₹1 lakh, you will be able to buy or sell stocks worth up to ₹5 lakh for intraday. Depending upon the risk parameters, the eligible stocks and the leverage would differ.

It offers leverage at 0.04% interest rate per day. The Zerodha Kite is one of the most reliable trading apps in India, which offers a clean interface, real-time margin display, and a comprehensive margin calculator.

Angel One

Angel One allows 5x leverage on qualified stocks via 20% margin using intraday trades. ARQ AI Advisor is an AI-powered stock selection system that helps traders discover entry and exit points of the trade through algorithms. There will be a flat rate of ₹20 per trade, irrespective of intraday or futures & options, post the first 30 days, when there is zero brokerage (up to ₹500).

Angel One's SmartAPI also allows algo traders to automate intraday leveraged strategies.

5paisa

The Pay Later MTF plan by 5paisa provides 4x leverage without charging any interest rate for the first month for up to Rs. 1 lakh, but charges 0.026% interest per day afterwards. The Margin calculator by 5paisa provides all the details needed per stock.

There is a brokerage charge of Rs. 20 for each transaction, irrespective of its trade segments. It offers scrip eligibility transparency, where traders can identify the eligible scrips for the MTF. It allows around 1500 scrips eligible for MTF.

How to Manage Risk

Leverage may result in gains as well as losses. Therefore, risk management becomes imperative. Listed below are some useful guidelines to ensure safe trading in India.

1–2% Rule per Trade

Always make sure to risk only 1% to 2% of your account equity on each trade.

Always Use Stop-Loss

The stop-loss system helps close out your position once the price moves against you. The advantage of stop-loss lies in its ability to help you avoid losing money based on emotions.

Set a Daily Loss Limit

Set the amount of loss that you can tolerate per day, which should not exceed 3%-5% of your capital. Once this point is reached, cease trading for the day.

Control Position Size

Do not change the size of your trading position simply because of the available leverage. Take into account the amount you are willing to risk rather than the gains you expect to make.

Conclusion

Leverage is your power, provided you understand how to capitalise on it. The best brokers in India provide intraday leverage in accordance with SEBI guidelines. To achieve the best results, you should monitor VAR daily, trade based on 1%-2% risk tolerance, and avoid overnight trading unless MTF is involved.