Mumbai, Feb. 18 -- Nithin Kamath, founder and CEO of Zerodha, has cautioned traders against overlooking brokerage costs while using margin trading facility (MTF), even as the leveraged segment witnesses strong growth.

In a post on social media, Kamath said that while many traders closely track the daily interest rate charged on borrowed funds, they often ignore brokerage expenses, which can significantly increase overall trading costs. He noted that because MTF is a leveraged product, traders are already exposed to amplified risk, and failing to account for transaction costs can push the breakeven point higher.

Kamath highlighted that brokerage charges, particularly on shorter holding periods and small price movements, can make the diff...