Online Trading Vs. Offline Trading

The Indian financial markets have gone through a major transformation thanks to the introduction of online trading. This evolution has completely reshaped how investors execute buy and sell orders but has also changed how they view and interact on the markets and access information. In this article, we will try to understand the difference between online and offline trading and explore some of the popular online trading platforms that are currently available. 

What is online trading?

Also known as electronic trading, online trading is the process of purchasing and selling financial instruments through internet-based electronic platforms. With online trading, investors can execute trades in a wide range of assets, such as stocks, bonds, mutual funds, commodities, and currencies, irrespective of their geographical location.

In addition to allowing investors to execute trades instantly, online trading platforms also provide them with real-time market data, various trading-related and financial tools, and educational resources. 

The introduction of online trading democratized the Indian investment landscape by allowing individual investors to engage in various market activities that were once primarily reserved for professional traders and financial institutions.   

What is offline trading?

Offline trading involves purchasing and selling financial instruments through a stockbroker. Most brokers offer a call and trade facility, where you can place a buy or sell order over a call after proper verification of your identity. 

Alternatively, you can also place an offline trade by visiting the nearest branch of your stockbroker. In this case, however, you may be required to fill out and submit an order slip containing details of the security that you wish to buy or sell, the desired quantity, and the expected price. If you do not wish to manually visit a branch of your stockbroker, you could also consider sending the filled-out and signed order slip via post.

What is the Difference Between Online and Offline Trading?

Now, let us compare online trading vs. offline trading to understand the differences between them.

What are Some Online Trading Platforms?

Now that you have seen the detailed comparison between online trading vs. offline trading, let us move on to the various online trading platforms that most stockbrokers in India offer.  

• Browser-Based Trading Platform 

This type of platform allows investors to access their trading accounts and execute trades directly through web browsers. Browser-based platforms are highly popular since they can be accessed from any computer or mobile device with an internet connection.

Another major advantage of browser-based online trading platforms is that they do not require any installation of specialized software. This makes it ideal for investors who use multiple devices or prefer not to download any additional software. 

• Smartphone-Based Trading Platform

Fueled by the increasing use of smartphones in the country, mobile trading apps have become extremely popular in the Indian financial markets. These apps can be installed onto a compatible touchscreen smartphone and provide the flexibility to trade on the move. 

Most smartphone-based online trading platforms feature a user-friendly interface with clear process flows, making them ideal for investors with little to no technical knowledge. Some mobile trading apps even offer features like push notifications for sending out price alerts, news feeds, and to communicate the statuses of their orders.

• Desktop-Based Trading Platform

Desktop trading platforms are software applications that must be installed directly onto a trader's or investor’s computer. These platforms often provide the most comprehensive set of features and tools and are tailored for experienced individuals. Desktop-based online trading platforms typically offer advanced charting capabilities, customizable interfaces, and faster execution speeds compared to browser-based platforms. 

Also Read: Advantages and Disadvantages of Online Trading

Conclusion

With this, you must now be aware of the differences between online trading vs. offline trading. At the outset, online trading appears to be the most convenient, accessible, and cost-effective option for investors. However, offline trading does have its own place in the Indian financial markets. Investors who do not have access to a good-quality internet connection could utilize the call-and-trade facility offered by most Indian stockbrokers to place trades on the market.  

Before you make any trade, whether online or offline, it is important to conduct thorough fundamental and technical research. The Research 360 platform, powered by Motilal Oswal, features a long list of useful research and analytical tools to help you make informed decisions. Whether you are an active trader pursuing short-term returns or a long-term investor seeking to create wealth, the various features available on Research 360 can assist you in your journey.