Difference Between Online Trading and Offline Trading

Particulars

Online trading

Offline trading

Ease of Trade

Empowers you to undertake all transactions as per your will, with limited role of the broker

You depend entirely on the broker to complete your transactions

Provides you with greater convenience to transact quickly – anytime, anywhere. All you need is constant availability of internet services.

You need to follow up constantly with the broker to initiate and complete transactions. Besides calls to the broker, it may entail visits to their office time and again.

Platform

Access research around and invest in multiple asset classes such as shares, commodities, etc. using one single platform

Undertake your own research and due diligence before asking the broker to execute the trade

Quality of advice

Get detailed research reports on not just stocks but all other investment options at your fingertips

Rely on the broker’s recommendations which may or may not be based on solid research

Costs involved

You pay lower charges and fees to the broker, which enhances the profits on your transactions

You pay more brokerage fees and charges due to the highly personalized services

Security

A highly secure mode of transacting as you have full control over your trades.

Sometimes brokers may undertake your transactions, on your behalf without your knowledge.

Real time information

Real time updates on shares, securities and markets comes in quite handy to traders. Such information is easily accessible via online trading platforms.

There is typically a time lag in sharing of information and real time information is not provided in most instances.

Fraud

Virtually negligible risk of potential frauds. Online trading account is protected by several layers of security. Proactive and close monitoring by the regulator, SEBI goes a long way in preventing potential fraudulent practices.

Inaccurate impersonation and/or forging of documents is possible, amid lack of adequate checks and balances.

Expertise and Knowledge

You have access to high quality and detailed research reports and analytical insights (including fundamental and technical analysis) provided by your broker. These help you make smart, informed investment decisions.

May vary on a case to case basis. If your broker has several years of experience and knowledge, you might receive valuable guidance from them.

Speed

Given that the entire process is digitalized with no need for physical documentation, you can complete your transactions at super high speed.

Speed of executing transactions is much slower due to high level of manual intervention.