In Offline Trading, all the transactions are routed through an advisor, who buys and sells shares on the client’s behalf. The buy and sell orders are placed either via call or by visiting the broker’s office. On the other hand, Online Trading is carried out through a broker’s internet-based proprietary trading platforms such as mobile apps, desktop softwares and websites. All you need is an internet enabled device like a mobile, laptop or a tablet and you can enjoy online share trading anytime and anywhere. Online trading, empowers investors with become independent by making the stock markets completely accessible to them. They provide research calls, charts, market news, stock quotes and everything else that investor/trader required to know about the market. The sheer convenience offered by online trading platforms has encouraged millions to switch to online stock trading.
If you are confused about choosing between the two trading methods, here’s a point-by-point comparison of both to help you gain more clarity: –
Offline trading is largely dependent on direct communication. In order to execute an offline trading transaction, you would need to get in touch with your advisor or the broker’s office on a daily basis. On the other hand, online trading eliminates the need for direct communication. If you have an online trading app, you can buy or sell stocks on the go, with just a few taps through your phone.
The fee for online trading is relatively lower compared to offline trading. This is because offline trading involves more people. For instance, a dealer would be required to punch in the order during call and trade, a relationship manager would be required to offer active assistance for calls and lastly the representatives who call and confirm the order to be executed would be involved. However, when it comes to online trading the investors execute the trade by themselves, which reduces the number of people involved and thereby the cost which is in turn passed on by the broker to the clients. Some discount brokers also remove a few essential services like alerts and relationship managers and provide the basic services at a lower cost. I personally wouldn’t prefer this however it is up to you (the investor/trader) to decide which services he needs and then chose the brokerage plan that suits them the best.
Online share trading gives you access to several advanced analytical features and real-time stock market news. For e.g. the Edelweiss Mobile Trader App (EMT) and Desktop Trading Software (TX3) offer convenient features such as advanced charting, real-time stock quotes, insightful data analytics and the latest news from the financial world. Market experts at Edelweiss create detailed research reports to help you make informed trade decisions. The EMT app also lets you add these recommendations to your watch list and track their performance for free. These expert tools, help investors make the right trading decisions without depending on an advisor. Conversely, when you trade offline, your success depends on the expertise of the advisor and you will be dependent on them to execute your trades, to inform you of market movements and to analyse stocks you are interested in.
Promptness of transactions
When it comes to stock trading, time is of the essence. Markets are in a state of constant flux and if you don’t trade fast enough, you might lose the opportunity to make some money. When you trade offline with the help of a broker, you are unable to take advantage of these highs and lows as the time span of conducting a transaction is more. You will have to wait for the broker to execute the trade. On the other hand, online trading enables you to carry out trading transactions with just a few clicks. You can immediately buy stocks when prices go down and sell your stocks when the price hits the roof.
Both online and offline trading offers its own advantages. However, online trading has quite an edge over offline trading when it comes to speed and convenience. If you haven’t started trading online, now is the right time to do it. Of the apps available in the market, I would recommend Edelweiss Mobile Trader (EMT) app. EMT app offers unique features like Live news which is faster than TV, Advanced charting with 17+ technical indicators, Screeners that help identify market opportunities with ease, comprehensive market section, and many more exciting features. You can download the Edelweiss Mobile Trader App (EMT) and Desktop Trading Software (TX3) online for free to start trading on the go.