Question

Compare the advantages and disadvantages of online stock trading with offline trading. (Electronic Commerce)

Answer 1

1. The main difference between the two is that online trading allows you to do trade sitting in front of your computer. It eliminates the need for a broker. You can buy and sell financial instruments by keeping track of the market by your own. While on the other hand offline trading will want a person to go to a real office and deal with a broker to do the trade. This will involve brokerage fees as well.

2. To be a successful at trading we need to know the minute to minute movement of the stock markets. In offline trading when information comes from the brokers it will not be in real time. Whereas in online trading we can keep track of the market every minute.

3. One thing that online trading lacks is the expertise of a well experience broker. When a new investor starts trading he can get easily carried away with sudden movement in the marker which may not sustain.

4. The chances of falling prey to fraud is more in offline trading. While in online trading you are the sole person handling your securities through protected apps or platforms.