Online Trading vs Offline Trading in India

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This article explains the online share trading, online trading platforms, online trading account, offline trading and difference between online trading and offline trading.

Online Share Trading (Online Trading)

Online share trading involves buying and selling of stocks using the online share trading account and the online platform.

Trade using the internet on your devices like computer, laptop, tablet or mobile at your own convenience is referred to be online trading. Trading online means that you aren’t dealing with intermediate broker or agent. The cost of online trading is lower compared to traditional physical trading. Most of the stock brokers in India offer online trading.

The online trading platforms are:

Desktop trading software

It is an installable trading software that needs to be downloaded and installed on your pc or laptop and can trade using internet. It gives the feel of the terminal based trading and loaded with power-packed trading features.

Browser or web-based platform

It is a web based platform where you can directly trade on broker’s website without downloading anything. The order execution is instant and quick settlement of trade. You can also invest in Mutual Funds, IPOs and other investment avenues from the same portal.

Mobile trading app

This is trading application provided by the broker to trade using smartphones or tablets on-the-go. It can be downloaded through from google play store or apple store for android or apple users.

Online Share Trading Account

An online share trading account helps you trade financial instruments through the internet. An online trading account comes handy to execute buy/sell orders at the click of a mouse. You can trade in equity, derivatives, and currency on different exchanges from the same account. You can also invest in other financial instruments like IPOs, mutual funds, bonds and government securities, etc. It is easy to set up, and offers telephonic and online access. It contains a whole lot of information about your trading details. Hence, you can make financially sound decisions to increase profitability. Such an account provides information on gross profit and loss. It also increases the speed of the execution and settlement of trade orders. You can also make as many or as few trades as you desire.

Benefits of Online Trading

  • You can trade at any time of the day. You don’t have to wait for market hours to speak to your broker. You can place off-market hour orders to be executed when the market will open.
  • Online trading is cheaper as there is no call and trade charges and also brokers offer low brokerage plans for trading online.
  • You get real-time information on the market, current prices of stock, news update.
  • You can trade from anywhere in the world. You are not restricted to be in the same city to contact your local broker.
  • You can trade on multiple stock exchanges whom your broker is registered with and invest in multiple products like Mutual Funds, IPOs, bonds, FDs, Insurance, etc.
  • You get an online email and chat support and SMS alert for transactions.

Offline Share Trading (Offline Trading)

Offline trading comprises of terminal based trading through broker’s agent or sub-broker local office. It has lot of manual intervention from your broker and your decision making gets diluted due to the personal interest and mindset of broker. Offline trading can be done either by calling your broker or visiting their terminal. Full-service brokers like Sharekhan, Motilal Oswal, IndiaBulls, Angel Broking usually have this type of set up in most of the big cities.

Online Trading vs Offline Trading

We will try to differentiate online trading from offline trading with the help of following points:

Online Trading Offline Trading
Platform Online trading platforms are softwares and websites Offline trading platform are the trading terminals with the sub-broker of your broker.
Charges Online trading charges are cheaper as there is no overhead cost. More expensive than online trading due to additional terminal set up cost.
Negotiation on brokerage Not negotiable Can be negotiated depending on your relationship with the sub-broker.
Location Centrally located Located in almost every city.
Product and Services Trading and investment can be done on various segments and exchanges from the same portal Limited segments and exchanges are offered.
Customer Service Offered online mostly with the help of email, sms and live chat Mostly by calling the broker or by contacting your assigned Relationship Manager.

Last updated on 11th Jul 2019

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  2019-07-11T09:39:40+00:00






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