Before the arrival of the Internet in India, stock trading was done through offline mode. The stock brokers assigned orders i.e., purchased and sold stocks on the client’s behalf. Over the years, stock trading has evolved tremendously, and to simplify trading and make the whole process smoother, trading online has emerged as an excellent alternative and a perfect solution.

In the existing scenario, both offline and online trading are accepted. However, offline trading has failed to impress new investors due to the numerous benefits offered by an online trading account. In fact, the majority of advantages an investor gets by operating an online trading account over the traditional offline account are much more.

Let’s examine some of the key distinctions between offline trading and using the online trading facility.

Easier Trading

The convenience of trading is the highest advantage that comes with starting an online trading account. There is absolutely no obligation to visit a stock broker for executing the tradind formalities or asking a stock broker and demanding the processing of transactions. All an investor needs is a laptop/mobile phone and a good internet connection to start online trading activities. On the contrary, offline trading is a cumbersome chore where the investor needs an active support of stock broker in every trade. Therefore, online trading provides you with the ease of trading for administering your trades from everywhere.

Save Finance

The maintenance and operation cost for online trading platforms portals/sites is comparatively lower as opposed to the cost of recruiting staff and setting up branches in offline trading. This decrease in cost is transferred to the clients in the form of low brokerage costs. Furthermore, due to the increasing competition among various discount and online full-service brokers in India, the brokerage costs have been steadily lowered. A lesser trading fee imposed in an online trading platform, which makes it an attractive determinant for the potential investors.

A Single Platform

When it comes to trading, everything is done with a trading, demat, and a bank account. All can be managed at a single point through the online trading model only. Buying and selling of stocks, withdrawal and transfer of money, portfolio management and receiving expert advice are all possible through one unique online trading platform. An investor can also open a 3-in-1 demat and trading account, which can be linked to the bank account simply. In offline trading, such important factors are all missing.

Grasp Real-Time Information

Online trading services let you get real-time and updated information about stocks and other investment options. An investor gets frequent and timely updates to maintain their portfolio efficiently. On the other hand, limited information is provided in offline trading, which may restrict the stock traders in taking well-informed and timely decisions. Moreover, online brokerage firms have an enormous amount of information, including up-to-date graphs displaying trading trends and information. Investors can also customise their login pages in most online brokerage firms to easily view the stocks they are interested in.

Greater Control for the Investor

In online trading, an investor can execute trades wherever and whenever they want. It means an investor can trade even when they are travelling and execute it without any difficulty. The investor has the power over the stocks he/she holds and can analyze the status of the companies and the stocks easily. In offline trading, there is the limitation of brokers broker who will be performing the trades on your behalf.

Prevention Of Frauds

Since online trading gives better control for your transactions, there are much lesser chances of fraudulent activities. Whereas, in offline trading, an investor is not dependent on anyone; hence, there are no chances of mistakes and frauds. The Securities and Exchange Board of India (SEBI) is quick and stringent with its rules and continually monitors the investing and trading activities very closely. Thus, online trading scores better when it comes to the protection and security of your transactions.

Supervision & Expertise

The responsibility of sharing online analysis such as thematic and fundamental reports has become a lot smoother with online trading. Such statements are easily available on the brokerage sites now, which allow the investors to understand stocks and take remedial actions.

Eliminates Brokers or Middlemen

The chief advantage of online trading is that an investor can readily eliminate the function of brokers or middlemen. Previously, intermediaries played a crucial role in trading and it wasn’t possible to conceive a way to trade without their assistance. By trading with an online trading gateway or online trading application, an investor can buy or sell stocks with just a few taps on the screen.

With online trading, investors can get immediate assistance and expert guidance if needed from a stock broker or trusted brokerage firms. However, keep in mind that both offline, as well as online trading, have their own advantages. The choice must be based on convenience, and you may also check online discussion forums along with references to make the best decision.


Published by Daphenee Plaisir