Stock trading and investing have been around for a very long time. The National Stock Exchange (NSE) estimates that there are about 1.2 crore active investors in India, and the number is increasing. For many, offline trading was a cumbersome process with the mandatory involvement of the broker restricting people from acting on their own. Although now, with online investing and trading, you are in control of your trades, and it is so easy to work with online trading apps, that is why online trading is gaining traction, and offline trading is on the brink of extinction.
What is offline trading?
The term “offline trading” refers to physically instructing your broker to place a trade on a stock exchange. You can speak with your broker by phone or go to their office. Your broker will verify your account information and execute a trade on your behalf. Trading over the phone will probably take longer. Brokers and traders, as well as brokers and exchanges, communicate frequently. Your broker is essential in offline trading; he is the primary source of communication and middleman. In addition to communication between the broker and trader, there will also be communication between the broker and the exchange.
What is online trading?
Online trading is a digitized form of trading. It is simply the purchase and sale of assets via an online trading platform provided by a broker. It is currently possible to trade all these financial instruments online, including when you buy stocks, bonds, mutual funds, ETFs, futures, and currencies. Any trader or investor can have their trades executed by brokerage firms. Typically, a bank account and a depository participant connect to an online trading account (one your broker has a tie-up with). An essential benefit of trading online is the speed at which transactions process and settled. The entire process is much quicker because everything is digital, and there aren’t any physical documents to copy and file. Transactions now occur in just a matter of seconds.
Online trading scores all the points over offline trading in terms of convenience. It is because you don’t have to go to the broker in person to complete the necessary paperwork and request that they handle the transaction. Instead, from the convenience of your home or office, you can buy shares and stocks yourself.
You can access up-to-date, real-time information about stocks, share market live, and other investment opportunities through mobile apps and online trading account services. The updates you receive are timely and consistent with managing your portfolio effectively.
All you need is a piece of technology with an internet connection for online trading. In addition, a lot of apps today let you trade while on the go. As a result, you can complete the trade in a matter of seconds, whether traveling or getting ready for a formal meeting.
Your online trading account is well-protected by layers of security, but you must ensure that you trade with only publicly recognized trading apps to avoid malpractices. Moreover, online trading gets monitored by the Securities Exchange Board of India (SEBI).
If you have the needed knowledge to trade and monitor your investments, then go for online trading, whereas offline trading is your best bet if you are a rookie with little to no knowledge of stocks.