Comparison Between Online And Offline Equity Brokerage

Nutan Gupta

03 Aug 2017

In the past, when traders wanted to get involved with anything from stocks to futures, they had to find a quality broker that could help them close these deals in the market. This basically meant that anyone who couldn’t reach a broker or who didn’t want to work exclusively with these professionals had little choice but to do just that. In this day and age, this has changed as now you have the option of choosing between online and offline equity brokerage.

What exactly is the difference between online and offline equity brokerage? Is one better than the other? Will choosing one of them lead to greater success in your investments?

There are certain points, on which comparison on both can be made which will enable you to understand the right choice for you:
1) Real time information
Trading needs to be done with real time information because without this, you are just trading blindly. When you opt for offline equity brokerage, you won't be able to get real time information about trade as they are posted online in real time. This can end up putting you at a disadvantage.

2)Flexibility

In offline equity brokerage, you have to call your broker every time you want to buy or sell something on the market. At times, this can be helpful in getting some valuable advice, but due to the nature of the market, you might not want to spend as much time on the phone as you would while dealing with these professionals.

3) Fees

One of the most important differences between online and offline equity brokerage is that online equity brokerage offers the best saving options while offline equity brokerage is always on the higher side. When you choose to trade through online equity brokerage, you have to pay less brokerage fees. In fact, there are companies which only charge a flat fee as low as Rs. 10.

4) Trade at any time/place
:
Another great benefit of online equity brokerage is that you can trade from anywhere and at anytime; from your personal computer or your smartphone. You don't have to worry about visiting the office of your broker during his office hours. In offline equity brokerage service, you have to wait until business hours to speak to your brokers but this is not the case in online equity brokerage as you can do the trading whenever you want.

5)Fraud Prevention

As online equity service provides users with complete control over transactions, the risk of potential frauds is eliminated. There are certain instances when the brokers execute trades on behalf of their clients without receiving permission, which can cause significant losses to the users who choose offline equity brokerage option.
Apart from these, the following benefits of online brokerage lead to a simpler, hassle-free experience, giving peace of mind.
Untitled 
                            Fig 1: Benefits of online trading

If you find that you need a hands-on approach that an offline broker has to offer and that you want to spend much of your time trading in the market, you might want to opt for offline equity brokerage service. However, if you want the flexibility that comes with an online trading option, online equity brokerage might just be the right choice for you.



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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Comparison Between Online And Offline Equity Brokerage

Nutan Gupta

03 Aug 2017

In the past, when traders wanted to get involved with anything from stocks to futures, they had to find a quality broker that could help them close these deals in the market. This basically meant that anyone who couldn’t reach a broker or who didn’t want to work exclusively with these professionals had little choice but to do just that. In this day and age, this has changed as now you have the option of choosing between online and offline equity brokerage.

What exactly is the difference between online and offline equity brokerage? Is one better than the other? Will choosing one of them lead to greater success in your investments?

There are certain points, on which comparison on both can be made which will enable you to understand the right choice for you:
1) Real time information
Trading needs to be done with real time information because without this, you are just trading blindly. When you opt for offline equity brokerage, you won't be able to get real time information about trade as they are posted online in real time. This can end up putting you at a disadvantage.

2)Flexibility

In offline equity brokerage, you have to call your broker every time you want to buy or sell something on the market. At times, this can be helpful in getting some valuable advice, but due to the nature of the market, you might not want to spend as much time on the phone as you would while dealing with these professionals.

3) Fees

One of the most important differences between online and offline equity brokerage is that online equity brokerage offers the best saving options while offline equity brokerage is always on the higher side. When you choose to trade through online equity brokerage, you have to pay less brokerage fees. In fact, there are companies which only charge a flat fee as low as Rs. 10.

4) Trade at any time/place
:
Another great benefit of online equity brokerage is that you can trade from anywhere and at anytime; from your personal computer or your smartphone. You don't have to worry about visiting the office of your broker during his office hours. In offline equity brokerage service, you have to wait until business hours to speak to your brokers but this is not the case in online equity brokerage as you can do the trading whenever you want.

5)Fraud Prevention

As online equity service provides users with complete control over transactions, the risk of potential frauds is eliminated. There are certain instances when the brokers execute trades on behalf of their clients without receiving permission, which can cause significant losses to the users who choose offline equity brokerage option.
Apart from these, the following benefits of online brokerage lead to a simpler, hassle-free experience, giving peace of mind.
Untitled 
                            Fig 1: Benefits of online trading

If you find that you need a hands-on approach that an offline broker has to offer and that you want to spend much of your time trading in the market, you might want to opt for offline equity brokerage service. However, if you want the flexibility that comes with an online trading option, online equity brokerage might just be the right choice for you.



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