Online Vs Offline Share Trading

Blue and Yellow Technology LinkedIn Banner 5 Online Vs Offline Share Trading

Share Trading has been one of the lucrative forms of investment and a business since time immemorial. Throughout a significant point of time, share trading has been a predominantly offline business, just like any business was before digitization. With the advent of online trading, share trading has witnessed a massive revolution. 

However, we cannot say that online trading has wholly replaced its traditional offline counterpart. Offline trading has also adapted the best use of technology and keeps modernising itself to keep up with online trading and serve those clients who are still patronizing it. This blog will discuss the critical differences between both forms of trading and the advantage online trading has over offline trading.

Difference between online and offline trading:

The performance and functions of both these trading methods vary with different parameters, and they are:

  • Dependence on broker

    1. Online Trading
      Brokers are not mandatory for buying and selling shares, but they are needed to open a Demat and Trading account which serves as the lifeline for online trading.
    2. Offline Trading
      Trading must be done through a broker at all times. In other words, you are entirely reliant on the services of a broker.
  • Cost Efficiency

    1. Online Trading
      Since there are fewer brokerage charges when trading online, you can make more money.
    2. Offline Trading
      Many brokers charge excessive commissions. High brokerage charges may harm your earnings.
  •  Convenience

    1. Online Trading:
      You can trade from any location and at any time using an internet-enabled computer such as a smartphone, tablet, laptop, or PC.
    2. Offline Trading
      For call and sell, as well as other trading-related operations, you must physically visit the broker’s office.
  • Research and Analytical platform

    1. Online Trading
      You will have access to a single or multiple forums for conducting research and trading in stocks and securities.
    2. Offline Trading
      Before you ask the broker to buy or sell a share, you should do your analysis using the sources at your disposal.
  • Service Quality

    1. Online Trading
      You will get comprehensive reports with patterns, trends, and market changes to help you make informed decisions about stocks and securities.
    2. Offline Trading
      You must have apparent confidence in the broker. Word-of-mouth advise from the broker must be followed.

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Advantages of Online Trading over Offline Trading

  • Flexibility
    The best part about online trading is the flexibility it provides to the traders. With the help of an online trading platform, the trader can buy or sell shares from anywhere globally and not be dependent on anyone.
  • Security
    Multiple layers of security safeguard your online trading account. It is nearly impossible to hack your trading account and engage in unethical behaviour. Digital transactions also help to prevent fraudulent activities such as impersonation and the provision of forged documents. Furthermore, the Securities Exchange Board of India(SEBI) keeps a close eye on online trading.
  • Better Access to Shares
    The vital advantage of online trading entails receiving regular updates on the movement of stocks and securities. Many financial firms analyse the market’s various dynamics daily or weekly and provide you with updates. This continuous analysis ensures that you know existing and emerging market patterns/trends and can trade accordingly. To be precise, having access to real-time information via an online trading account aids in the development of an effective portfolio.

Conclusion

On comparing both online and offline trade, we can infer that trading online comes with many benefits. Though we have mentioned previously in the blog about how brokers are not necessarily required to trade except for opening Demat and trading accounts, having a discount brokerage firm like Tradeplus comes with plenty of advantages. We provide a free Demat and Trading account that enables you to trade online. Apart from this, we also provide you with the essential component required for online trading- an online trading platform. Our online trading platform is available on Android, iOS, and the web, thus providing you with the option to trade from anywhere with ease. 

Risk Managements Online Vs Offline Share Trading

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