A

PROJECTREPORT
ON

“COMPARISIONBETWEENONLINETRADINGANDOFFLINE TRADING”

Submitted to
R.H Patel institute of management
IN PARTIAL FULFILLMENT OF THE
REQUIRMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

Under
Gujarat Technological University
Under the guidance of

Faculty Guide
Chirag Vihora

Submitted by
Kalola Ruchi 208040592090
Delvadiya Mansi 208040592093

M.B.A.-SEMESTERIV
R.H. PATEL INSTITUTE OF MANAGEMENT M.B.A. PROGRAMME
Affiliated to Gujarat technological university Ahmadabad
May2022
 DECLARATION

I, Kalola Ruchi, Delvadiya Mansi here by declare that the comprehensive project report entitled
“COMPARISION BETWEEN ONLINE TRADING AND
OFFLINE TRADING” is purely an original work done by me toward the fulfilment of the award of
degree of Master of Business Administration. Any information taken from different sources has been
duly acknowledged. If urther declare that personal data and information received from any
respondent during survey has not been shared with any one and is used for academic purpose only.

Place: Vadodara Kalola Ruchi

Date:

Delvadiya Mansi
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep sense of gratitude towards my college R.H.
PATEL INSTITUTE OF MANAGEMENT. For giving me this tremendous opportunity to work in the
industry for the real time project. We express our sincere thanks to DR. RAJESH KHAJURIYA
(DIRECTOR) for his affection at encouragement & support during my training. I am also grateful to
MR. PRAKASH PATEL (MENTOR), and other teaching staff and non-teaching staff for their indirect help
to complete my research work. I would like to record my special thanks to my parents, friends, and
colleagues help me directly or indirectly in preparation of project work.
 EXECUTIVESUMMARY
The objective to do this project is to make the comparison between online trading and off-line trading to
find out which is better–Online trading or Off-line trading. The secondary objectives were to find what are
the possible features looked forward while selecting particular method for trading and to find out the
lacking are as of both online trading and offline trading and also to find ways to improve the online
trading so as to achieve consistency with the current going trend.

Researcher used the descriptive research design and simple non-probability convenience sampling for the
purpose of survey and collect primary data through questionnaire and sample size was 100. Researcher
has done data analysis on simple random sample.

It has been found that investors prefer to do online trading. In online trading respondents had not given
more preference to online fund transfer facility. Respondents are satisfied with the services which ever
they are using. In off-line trading respondents had given more importance to simplicity. It has also seen
that respondents prefer more to do long term investment than short term investment. It has also seen
that business persons mostly preferred to do online trading and people who are doing service, retired,
and farmers mostly prefer to do off-line trading.

Research concludes that online trading is better than offline trading due to its speed, secrecy, easy in
payment & receipt.

In online trading more credit exposure should be given same as getting offline trading which will attract
more persons for online trading. In on line trading, clients should be given proper de more garding how to
operate the online account so they don’t find any difficulty. In off-line trading, brokers should be more
faithful with their clients. Retired, service, farmer people should be made aware with the benefits of
online trading. Retired people should be focused more for online trading as it has been seen that they are
doing more off-line trading.
 TABLEOFCONTENTS

Chapter Particulars Page no.

no
I-GENERAL INFORMATION

1 About the industry 5

Indian market 6
Growth of the industry 7

II-PRIMARY STUDY

2 Introduction of the study 12

3 Research Methodology 24
3.1 Meaning
3.2 Research objective
3.3 Research design
3.4 Data collection method
3.5 Sample
3.6 Sampling method
3.7 Data collection instruments–Questionnaire
3.8 Statistical tool
4 Data Analysis and Interpretation 26

5 Findings 49

6 Limitations of the Study 51

7 Conclusion 52

8 Recommendation 53

9 Bibliography 54

10 Annexure 55
 I-GENERALINFORMATION

1.1ABOUTTHEINDUSTRY

THEHISTORYOFINDIANBROKINGINDUSTRY

The first publicly issued safety may be traced again to the fourteenth century in Venice where in the
authorities made the primary acknowledged trouble of bonds. These authorities’ securities had been
bought through traders and landowners as investments.
In and round 1750s in England, buyers with inside the stocks of early agencies might typically meet in
Jonathan’s Coffee House to exchange stocks and make commercial enterprise deals. Early percentage
bids and gives have been written at the Coffee House partitions and the buying and selling technique
become enormously unregulated, with insider buying and selling forming the idea for maximum funding
decisions.
By 1773, Trading Clubs had formed, and in 1801 a set of investors raised 20,000 kilos to construct the
London Stock Exchange in Capel Court. A comparable system turned into taking place in America. By the
early 1790s many traders had started buying and selling stocks. Just as in London, those early investors
frequently met at coffee houses in a casual environment.

In 1792, 24Brokers who every paid $four hundred for a "buying and selling seat" signed the Button wood
Tree Agreement. This settlement mentioned the policies beneath Neath which stocks might be sold and
sold. These policies shaped the premise for buying and selling guidelines that still exist now a days and
brought about the formation in 1817 of the New York Stock Exchange. Much water has handed beneath
neath the bridge due to the fact that then and we ahead all of the manner to late1990s.

By past due 1990s, maximum of the inventory exchanges was auto mated, and the “open outcry”
technique of buying and selling turned into the factor of the past. Most inventory exchanges started
out to apply computer systems to update ground traders.
1.2 INDIAN STOCK MARKET

The origination of the Indian securities market place can be traced lower back to
1875, while 22 enterprising agents beneath neath a Banyan tree hooked up the Bombay Stock Exchange
(BSE). Over the last 125 years, the Indian securities market has evolved continuously to turn out to be one
of the maximum dynamic, present day and green securities markets in Asia.

Structure and size of the markets:

Today India has country wide exchanges, the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE). Each has absolutely digital buying and selling structures with round 9400 collaborating
broker outfits. Foreign agents account for 29 of these.
There are some 9600 companies listed on the respective exchanges with a combined market place
capitalization near $125.5bn. Any market place that has skilled this kind of increase has a similarly full-size
call for quite green settlement procedures.

In India 99.9% of the trades, in line with the National Securities Depository, are settled in dematerialized
shape in a T+2 rolling agreement environments. In addition, trades are guaranteed by the National
Clearing Corporation of India Ltd. (NSCCL)and Bank of India Shareholding Ltd. (BOISL), Clearing
Corporation homes of NSE and BSE respectively.

Furthermore, every change has a Settlement Guarantee Fund to fulfil with any unpredictable scenario and
a negligible exchange failure of 0.003%. The Clearing Corporation of the exchanges assumes the counter-
birthday birthday celebration hazard of every member and ensures agreement thru a fine-tuned chance
control machine and an revolutionary technique of on-line role monitoring.
1.3 GROWTH OF INDUSTRY
BSE ONLINE TRADING SYSTEM

Bombay Stock Exchange (BSE)switched over from the open outcry trading system to a fully
automated computerized mode of trading known as BSE Online Trading (BOLT) System in 1995. This
system, which is both order and quote driven, was commissioned on 14 March 1995 and in May 1995 it
turned into brought for all of the securities indexed on BSE. It commenced with display screen primarily
based totally buying and selling and in September 1997, converted to direct on line get admission to
facility. In the preliminary stages, BOLT turned into to be had to agents of the inventory change primarily
based totally in Mumbai. But Expansion of BOLT nation-wide required:

1)Permission of SEBI

2)A national community that is secured and operational at all times.

BSE secured SEBI’s permission in 1997, and as a result, BSE agents have been loose to put in their buying
and selling terminals in towns where in there had been no inventory exchanges or BSE changed into
required to signal a memorandum of expertise at facilities in which there have been other exchanges
located to be able to install BOLT terminal. BSE added a nation-wide community to its present community
to extra than 200 cities.
Salient Features

1)The device lets in entire obvious mode for every order execution.

2)Trading hours have been increased; under the open-outcry system trading was restricted to two
hours.

3)Processing velocity coupled with prolonged buying and selling hours has ensured that maximum
orders get completed on daily basis.

4)Orders are matched in much less than one-10th of a second.

Bolt system:

1) The device lets in entire obvious mode for every order execution. 2
2) Trading hours have been increased; under the open-outcry system trading was restrained to two
hours.
3) Processing velocity coupled with prolonged buying and selling hours has ensured that maximum
orders get done on daily basis.
4)Orders are matched in much less than one-10th of a second.
NSE: ONLINE TRADING SYSTEM
NSE become integrated on 27 November 1992 to facilitate inter play with smaller exchanges with inside
the u. s. a. to lead them too feasible and active. It is absolutely automatic in terms of both trading and
settlement procedures. NSE’s trading system is knows as NEAT (National Exchange for Automated
Trading). It is fully automated screen-primarily based totally buying and selling system, which allows
agents and buying and selling individuals round India to exchanges simultaneously. NEAT has changed the
‘ring’ and agents now not focus on the ground of the trade to alternate. An investor is accordingly capin a
position to shop for or promote securities via the agents related to NEAT network.

ThebuyingandsellingsoftwareprogramdecidedonthroughNSEisinusethrough numerous exchanges across

the world. The telecommunications network is the back bone of its trading system designed to offer non-
stop availability to the agents. It is certainly considered one among the most important interactive VSAT-
primarily based totally inventory exchanges with inside the world. Broker to dealer exchange is thru on-
line terminals. The terminal soft he brokers so the whole sale debt market is linked to the significant
computer. The agents at the capital market place alternate via a satellite tv for pc community this is
owned operated and controlled with the aid of using NSE the usage of VSAT (Very small aperture
terminals) technology.
NSE’s trading system adopts the principle of an ‘order driven market’. It has reduced jobbing spreads in
the exchanges there by reducing transaction cost. Prior to the advent of NSE, an investor had to route
orders through a serried of correspondent brokers to the appropriate exchange.

Consequently, the investor did not necessarily know the exact price of the transaction and the
service cost was high. NSE has now made it possible for an investor to access the market and conclude
the deal, irrespective of his location at and agreed cost. This has given buyers the benefit to alternate and
an extremely good gain with inside the end and execution of their deals.
Procedure for online trading:

Step-1: Those traders inquisitive about doing the buying and selling over net machine they must
technique the agents and sign in with the Stock Broker.
Step-2: After registration, the dealer will offer to them a login name, password and a non-public
identity number (PIN).
Step-3: Actual placement of an order. An order can then be located via way of means of the use of the
region order window as under:
First through coming into the image and collection of inventories and different parameters consisting
of amount and charge of the scrip at the area order window. Second, fill with inside the image,
collection and the default quantity.

Step-4: It is the process of review. Thus, the investor has to review the border placed with the aid of
using clicking the evaluation option. He may additionally re-set to clean the values.
Step-5: After the evaluate has been satisfactory; the order needs to be despatched through clicking at
the ship option.
Step-6: The investor will obtain an “Order Confirmation'' message in conjunction with the order
quantity and the cost of the order.

Step-7: In case the order is rejected through the Broker or the Stock Exchange for sure motives
together with invalid rate limit, the perfect message will seem at the lowest of the screen. At present,
a time lag of approximately ten seconds is there in executing the trade.
Step-8: It is concerning charging payment, for which there are distinct modes. Some brokers will take
some advance payment from the investors and will fix their trading limits. When the alternate is
executed, the dealer will ask the investor for switch of budget through the investor to his account.
Factors to keep in mind while selecting online brokers

Brokerage cost

It is critical to weigh up the subscription and buying and selling fees charged via way of mean so a web f
broking towards blessings provided with the aid of using the web website online. All on line agents show
their fees on their web websites. Some make certain you discover the costs easily whilst with others you'll ,
should seek a bit.

Safety

Please ensure web website online has 128-bit encryption to make sure protection of transaction online. 5
paisa.com, ICICIDirect.com is few web websites with 128-bit encryption. You typically get a secured Login t
identity entification and password. It is usually really useful to regularly alternate buying and selling
password. Ideally on-line buying and selling web website online need to be absolutely integrated. The more
the backward integration, the higher it's far for the customer Ideally broker account, demat account and .
financial institution account must be connected electronically.

Speed of execution

System must be rapid and dependable that doe’s simply one job-executes your trades. The final aspect youl
want is a website this is closely congested with the customers who're downloading heavy jpeg graphs or
pulling the contemporary tale why market place is moving.
The site should be one click wonder where squaring off all your positions or cancelling all of your pending
order stakes one click on and an affirmation of action.

Trading restricts

For trading, all web websites offer four instances purchase and promote restriction towards margin cash
installed with the aid of using customer. For shipping of shares, shopping for restriction is same to margin r
cash installed via way of means of customer. Couple of web websites additionally affords margin investment
for purchasing of shares.
 II-INTRODUCTIONABOUTTOPIC
WhatIsInvestment?
Investment is the employment of price range on belongings with the intention of incomes profits or
capital appreciation. For a layman, funding way a few financial commitments. Investment has two
attributes namely time and risk. Present consumption is sacrificed to get ago back with inside the future.
The sacrifice that has to borne is sure however the go back is the destiny can be uncertain. This
characteristic of funding suggests the risk factor.

To the economist, funding is the addition made to the nation’s capital inventory that consists of goods and
services that are used in the production process. Antiaddiction to the Capital inventory way a boom
withinside the buildings, equipment’s or inventories. Financial funding is the allocation of cash to property
which are anticipated to yield a few benefits over a duration of time. It is a change of monetary claims
which includes Shares and bonds for cash. They are predicted to yield returns and revel in capital increase
over the years.
The monetary and financial meanings are associated with every different due to the fact the financial
savings of the man or woman circulate the capital market place as economic investments, for use in
monetary funding.
One of the critical motives because one wishes to make investments accurately is to fulfil the price of
Inflation. Inflation is the price at which the price of residing increases. The intention of investments must
be to offer ago back above the inflation price to make Sure that the funding does now no longer lower in
value.
Investment Objectives
The main objectives are increasing the rate of return and reducing the risk. Other objectives like safety,
liquidity and hedge against inflation can be considered as subsidiary objectives.
Investment Alternatives:

A bewildering range of investment alternatives is available. They fall into two broad categories, viz.
financial assets and real assets. Financial assets are paper claims on some issues such as the government
or a corporate body. Real assets are represented by tangible assets like residential house, gold, precious
stones etc. although, the rapid change in the world of investment leads to the creation of new investment
alternatives.
Equity Shares:

Equity stocks are typically mentioned not unusual place inventory or everyday stocks. Even a Leven though the
phrases stocks and shares are interchangeably used, there's a Distinction among them. Share capital of an
organisation divided into some of small gadgets of same price referred to a stock. The time period inventory is the
combination of a member’s absolutely paid-up stocks of same fee merged into one fund. It is a hard and fast of
stocks prepare in a bundle.

Equity stocks (called not unusual place stocks in U.S.A.) constitute the possession role in a company. The holders of
Equity stocks referred to as shareholders (or stockholder in U.S.A.) are the felony proprietors of the company.
Equity shareholders together very own the company. They endure the hazard and revel in the rewards of
ownership.

Mutual Funds

Mutual Fund is a believe that swimming pools the financial savings of some of buyers who percentage a not unusual
place monetary goal. The cash forth at reason gathered is then invested in capital market
gadgets including shares, debentures and different securities. The profits earned through these investments and
the capital appreciations realized are shared by its unit holders in percentage to the wide variety of devices owned
via way of means of them. Thus, a Mutual Fund is the maximum appropriate funding for the not
unusual place guy because it gives an possibility to spend money on a diversified, professionally controlled basket of
securities at a relatively low-cost.
(1) Life Insurance

Life coverage is a settlement for price of an amount of cash to the individual confident on the

happening of event insured against. Usually, the contract provides for the payment of a quantity at the

date of adulthood or at designated dates at periodic durations or if unlucky demise occurs. Among

different things, the contracts additionally offer for the fee of top rate periodically to the company via

way of means of the coverage holders.

Life insurance eliminates risk. The basic customer needs met by life insurance policies are protection

and savings. Policies that are designed as savings contracts allow the policy holder to accumulate price

range to fulfil unique funding goals including earnings in retirement or repayment of a loan. In practice,

many policies provide a mixture of savings and safety benefits.

The predominant benefits of lifestyles insurance are:

a. Protection

b. Easypayments

c. Liquidity

(2) Government Securities

 Debt securities issued by the central government, state government, and government agencies are
referred to as government securities or gilt-edged securities.
 Government securities have maturities ranging from 3-20 years and carry interest rates that usually
very between 8 and 10 percent.
 Even though these securities carry some tax advantages, they have traditionally not appealed to
individual investors because of low rates of interest and long maturities and somewhat illiquid retail
markets.
1) ONLINE TRADING

The internet issued as a medium of buying and selling in net buying and selling. Orders are communicated
to the inventory alternate via website. Internet buying and selling began out
on 1st April 2000 with seventy-nine individuals in search of permission for on-line buying and selling. The
SEBI committees on net primarily based totally securities buying and selling offerings has allowed the
internet for use as an Order Routing System (ORS) through registered stock brokers on behalf of their
clients for execution of transaction.
Under the ORS the purchaser enters his requirements (security, quantity, price, buy/sell) in broker’s site.
They are checked electronically against the clients account and routed electronically to the ideal change
for execution through the broker. The purchaser
Receives a confirmation on execution of the order. The customer’s portfolio and ledger money owed get
up to date to mirror the transaction.

The consumer has to have the person identity entification and password to go into the digital ring. He
ought to even have a Demat account and financial institution account. The machine allows most effective
registeredclienttologinusinguserIDandpassword.Ordercanbeplacedusingplaceorderwindow of the website.

1.The client has to enter stock code and other parameters such as quantity and price of the scrip on the
place order window.
2.The client can review the order placed by clicking the review option. He can also reset to clear the
values.
3.Satisfactory order share sent by clicking the Send option.
4.The client receives an order confirmation message with order number and value of the order.
5.If the order is rejected by the broker or stock exchange for certain reasons such as invalid price limit,
are late message appears at the bottom of the screen. The time taken to execute the order is 10
seconds.
6.When the trade is executed, the broker asks for the transfer of funds by the investor to his account.
Stocks are credited/debited according to the buy/sell order in the demat accounts. Internet buying and .
selling offers general transparency among a broking and an investor with inside the secondary market. In the open
outcry system, handiest the dealer knew the truly transacted charge. With on-line buying and selling buyers can
see themselves the charge at which the deal takes place. Confirmation and execution of the change reaches the
investor in the least viable time, inside30seconds Instant comments is to be had approximately the execution.

List of a number of the websites presenting on-line buying and selling:

(1) www.sharekhan.com
(2) www.icicidirect.com
(3) www.jpmorgan.com
(4) www.5paise.com
(5) www.kotakstreet.com
Features of Online Trading

1.Speed:

Speed is the most important thing in online trading. As price fluctuates in every second, so its turns into t
essential for a dealer to vicinity the order at accurate time. As in on-line buying and selling it rarely takes
10 seconds to location the order and for execution of alternate it's going to take 30 seconds. Thus,
velocity is the essential characteristic non-line buying and selling. Time subjects plenty in stock market.

2.Secrecy:

The order which a dealer places, no person is aware of aside from broker. As it's miles a faceless. So
person who desires to make mystery settlement, for them online buying and selling could be very
important. It is a mystery settlement for investors and brokers.

3.EasyInPaymentandReceipt:

In online trading as we know that a trader has to maintain a separate bank a/c for that. It is a easy
procedure. Now a days internet banking centres are used. So, it turns into an excessive amount of
smooth to make fee or get hold of in case of online trading.

4.DigitalContract:

It is an agreement notice among investor and organization and dealer is the inter me diary. Digital l
settlement method the agreement could be obtained on mail. There isn't any want to get bodily bill. t
Whenever an investor buys or sells agreement, he'll get info of that agreement in shape on digital. And
because of those he can realize the brokerage, tax charged and the internet quantity which he had
obtained.

5.QuarterlyStatement:

In on-line buying and selling an investor can even get hold of quarterly assertion. It is a summarize asserti
on of contracts made inside three months. So, an investor gets this declaration each three months.
6.OnlineFundTransferFacility

In online trading, an investor is having financial institution a/c. Now a days, internet banking facility are
used. The funds can be transferred from bank a/c to dp a/c in 5 to 10 minutes and if a invest to desires to
r
withdraw from dp a/c then he's going to get in four to six hours. So, in those there's no want to visit
financial institution and switch the funds.

7.WebBasedProduct:

It is absolutely an internet primarily based totally product. In this system, there may be want to internet.f
An investor can do alternate on internet sites. And this internet web webpage additionally offers
beneficial data to an investor. It will supply information concerning numerous business enterprise affairs,
NSE, BSE, studies report, inventory analysis.
Advantages of Online Trading

1)Ease of Access

One benefit of online stock trading services is that they are easy for anyone to access and use. All this is
required to apply maximum online buying and selling offerings is an Internet connection and price range
in a bank account to invest. Accounts can regularly be installation inside some days and transfers may
be made in to debts from a connected bank account on demand, so that you can get cash in to
investments fast if necessary.

2)Cost

Another capability benefit of digital buying and selling is that the value of transactions can be much less
than using a traditional stock broker. Flesh and blood stock brokers are quite skilled professionals; while
you location a change with actual inventory agents you pay a premium for their time. Electronic trading
services are automated, which can reduce the cost of placing trades, allowing electronic services to
charge low transaction fees.

3)Self-Directed Investing

Many buyers pay funding specialists to control their investments for them. While this will have blessings
for individuals who do now no longer recognize making an investment, expert offerings frequently fee
commissions that may sap funding gains. Electronic making an investment lets in customers to direct
their personal investments and purchase and promote one very occasion they please while not having
to have interaction with middle men.

4)Convenience

Electronic inventory buying and selling additionally gives extra com fort than the use of a traditional
inventory broker. With on-line buying and selling, traders may be made everywhere so long as you've got
get admission to the internet. For instance, in case you are on a enterprise ride to China, you may make
trades from a pcat your in while not having to name anyone. Accounts are typically accessible at any time
of the day, allowing users to look over their investments one very occasion they please.
5)Subscriptionlevel:

Electronicinventorybuyingandsellingofferingscanalsoadditionallyprovideplenty
ofsubscriptionstagesfordifferentkindsoftraders.Forinstance,afewmoneyowed
areunfastenedandfeechargeshandiestwhilstyoumaketrades.Othersmightalso additionallyfeemonth-to-
monthprices,howeverpermitbuyerstomaketradesfor
muchlessmoney,whichmaybetremendoustobuyersthatanticipatetotradeoften.
2)OFFLINETRADING

Before1stApril2000,therehasbeenhandiestofflinebuyingandselling.Inthosean
investorhastomaintainanaccountfrombroker.Aninvestocandotradeeitherby
goingtobrokerorbydoingcalltobroker.Thereisnointernetinthese.Inthesethe
rightsarewithbroker.Aninvestoronmyowncan’tdoanything.Aninvestoris
absolutelydependingonthebroker.Thereisoneadvantageinthosekindofbuying
andsellingisthatpublicityrestrictisagreatdealextracomparedtoonlinetrading.

Inofflinebuyingandsellingwithinsidethepreliminaryperiod,aninvestorhasto
presentbestcommencingcostschequeandthere'snowanttopayanymargin
quantity.Thecreditscoreworthinessofinvestororhisturnoverwillboomhiscredit
scorerestrictandbecauseofthoseaninvestorreceivesadvantagetoexchange
extraandsohecanearnappropriatequantityofprofit.Thebrokeragesadditionally
differtoonlinetrading.Aninvestorgetscertainattractivebenefitsifitsvolumeis large.

Theofflinebuyersgetextraofferingsfrombrokinghoweverbuyersaren'thavingany
rightswiththem.Thereceiptandfeeiscompletedusuallythroughchequesasthere
maybenointernetbankingfacility.Aninvestorhastotelltodealerconcerningthe
chequetobeissuedorpaid.Inthoseofflinebuyingandsellinginvestorcanusethe
creditscorerestrictionthroughsimplysigningthecheque,canbeofatsomepoint lateralso.

Thedealerreceivestheeverydayrecordfromthebroking.Thedealerreceivesa
agreementnoticefromthedealeronthegiveupofbuyingandsellingday.Itbecome
tonsfamousuntilthedatetherehasbeennoon-linebuyingandsellinghoweverin
recenttimesit'sbeendecreased.Inthosetheinvestoraren'tunderstandingthat
preciselyatwhichchargeexchangehasbeendoneincaseofdoingphonetobroking,
sotheymaycometorealizemosteffectivewhilstbrokingwilltellthem.Now,we
needtoappearanceanumberofthefunctionsofofflinebuyingandselling.
Featuresofofflinetrading

1.Simple
Itisthesimplestformtodotrade.Asweknowthatinvestorcandotradejustbydoingcallor
eitherhecantakevisitofthebroker.Soacomputerilliteratecanalsodotrade
duetothesetypeoftrading.Andifthereisanyquerythenitcanbeeasilysolvedwithbroker
astheymaybehavinggoodrelations.Thusitisverymuchsimpletodotradein offlinetrading.

2.EasyToUnderstandAndOperate

Asitisthesimplesttotradeandsoitbecomeseasytounderstandandoperate.Ithas been
seenthatmostlyoldpersonsarehavingofflineaccount;itisbecausetheylike
theseandtheonlyreasonisthatiseasytounderstandandoperate.Theycanoperateitwith
thehelpofphoneorvisitingthere.
3.DirectContact

Inofflinetradingtheinvestmentdecisionarenotalonetakenbytheinvestorbutbroker is
withinvestor.Asthereisfacetofacecontact,orwecansaythatthereisdirect
contactbetweeninvestorandbroker.Soduetotheseallthedoubtsorqueriescanbeeasily
resolved.Duetodirectcontactmanyoftheproblemsofaninvestorareremoved.

4.MoreReliable

Investorsarereliableonbroker.Theycandependonbrokerandgetthegoodservicesfrom
them.Brokeradvicesthemtobuyorsellaparticularsecurityandsoaninvestor facesnodifficultyindoingtrade.

5.Convenient

Itisconvenientforinvestortousethissystem.Ithasbeenseenthatforoldorretired
peopleitbecomeseasytotradewithofflinetradingsystem.Thepersonswithwhom
thereisnotimeandthosepersonswhodonotknowanythingaboutthemarketcan
getthegreatservicesfrombroker.Thus,itisconvenient.
6.MoreServicesFromBroker

Aninvestorcangetmoreservicesfrombroker.Whenevermarketispositiveor
negative,brokerrecommendstoinvestorthatwhethertobuyornot.Brokergives
regulartipstoinvestorregardinginvestment.Theexposureofinvestorisinhandsof
broker.Soitwillgivemorecreditexposuretothoseinvestorswhosevolumeishigh
andtheywillgetevenreductioninbrokerages.Inofflinetradingthebiggestbenefitis
regardingexposure,sothataninvestorcandomoretradeandearngoodmarginof
profit.Thus,anofflinetradergetsmoreservicesfromthebroker
 III-RESEARCHMETHODOLOGY

3.1Meaning

Researchmethodisthemaximumcriticaltechniqueforadvancing
informationforsellingdevelopmentandtopermitguytonarrateextra
efficaciouslytohissurroundingstoperformhismotiveandtoclearup hisconflicts.

3.1ResearchObjective

1)PrimaryObjective

Tofindwhichisbetter–OnlinetradingorOfflinetraining.

2)SecondaryObjective

Tofindwhatarethepossiblefeatureslookedforwardwhileselectingthe particularmethodfortrading.

Tofindwaystoimprovetheonlinetradingsoastoachieveconsistencywith thecurrentgoingtrend.

3.2ResearchDesign

DescriptiveResearchDesign

ResearchusedtheDescriptiveResearchDesigncharacteristicsofaparticular
individualoragroupofpeopleandtheirtendencytowardssomethingandinourcase it
couldbetheonlineandofflinetrading.

3.3DataCollectionMethod
Datacollection

Therearetwosourcesofdatacollection,whichcanbe;
a)PrimaryDataSources Throughthequestionnaire

b)SecondaryDataSources

Throughtheprintedoutletofthecompany,throughthedatabaseoftheagents, throughInternet
 IV-DATAANALYSISANDINTERPRETATION

Q:1Doyouinvestyourmoney?

NumberofPeople Percent
Yes 100 100%

100

80
Frequency

60

40

20

Y es

Interpretation:
Wecanseefromthetableandgraphthatpeopleliketodoinvestmoneyandwecan
seethat100outof100peopleinvesttheirmoneywhichmeansthat100%people liketodoinvesttheirmoney.
Q:2Whatkindofinvestmentdoyouprefer?

Numberof Percent
People
Longterm 68 68%
Shortterm 32 32%
Total 100 100%
 60

40
Frequenc y

20

0
L ong term S hort term

Interpretation:

Wecansaythatlongterminvestorsaremoreasitis68%andshorttermare32%.
Q:3whichtypeoftradingsystemyouareusing?

Numberof Percent
People
Valid Online 70 70%
Offline 30 30%

Total 100 100%

Interpretation:
Wecanseefromthetableandgraphthatpeopleliketodoofflinetradingasmostof
thepeopleareinterestedinthesetypeoftradingthewecanseethat100people
70peoplewhichmeans70%areoftheviewthatonlinetradingisthebest.Andthe
30%peopleAreinterestedinofflinetraiding.
Q:4Ifyoupreferonlinetradingthenratethefollowingonascaleof1 -
5here1isstronglydissatisfiedand5isstronglysatisfied. accordingtoyourpreference

(1)Speed:

Frequencytable:

Numberof
People Percent
Valid Notinvestinonline 30 30%
Stronglydissatisfied 5 5%

Dissatisfied 9 9%

Neutral 15 15%

Satisfied 30 30%

Stronglysatisfied 11 11%

Total 100 100%

Interpretation:
Wecanseefromthetableandgraphthatmostofthepeoplearedoingonline
tradingoutof100people30peoplearenotinvestinonlinetrading.Itmeans30%
peoplenotpreferredspeed.Thereare70%peoplewhoareinonlineonly30%people
aresatisfiedand11%arestronglysatisfiedwiththespeed.
 2)Secrecy:

Numberof
People Percent
Valid Notinvestinonline 30 30%
Stronglydissatisfied 5 5%

Dissatisfied 9 9%

Neutral 18 18%

Satisfied 26 26%

Stronglysatisfied 12 12%

Total 100 100%

Secrecy

30

20

Frequenc y

10

0
Not inves t S trongly Dis s atis fie Neutral S atis fie S trongly
in Diss atis fied d d S atis fied
Online

Secrecy Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people30peoplearenotinvestinonlinetrading.Itmeans30%peoplenot
preferredsecrecy.Thereareonly70%peoplewhoareinonlineonly26%peopleare
satisfiedand12%arestronglysatisfiedwiththesecrecy.
3)EasyInPaymentandReceipt:

Numberof Percent
People
Valid Notinvestinonline 30 30%
 Stronglydissatisfied 7 7%

Dissatisfied 8 8%

Neutral 18 18%

Satisfied 27 27%

Stronglysatisfied 10 10%

30 Total 100 100%

Easyinpayment&receipt

20

F requency

10

0
S trongl Dis s atis fie Neutra S atis fie
Not

Strongly invest Dissatisfie d l d Satisfied

Online d

Easyinpayment&receipt Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people30peoplearenotinvestinonlinetrading.Itmeans30%peoplenot
preferredeasyinpaymentandreceipt.Thereareonly70%peoplewhoareinonline.
Only27%peoplearesatisfiedand10%arestronglysatisfiedwiththeeasyin paymentandreceipt.
4)DigitalContract:

Numberof
People Percent
Valid Notinvestinonline 30 30%
Stronglydissatisfied 9 9%

Dissatisfied 8 8%

Neutral 20 20%

Satisfied 25 25%
 Stronglysatisfied 8 8%

Total 100 100%

Interpretation:
Wecanseefromthetableandgraphthatmostofthepeoplearedoingonline
tradingoutof100people30peoplearenotinvestinonlinetrading.Itmeans30%
peoplenotpreferreddigitalcontract.Thereareonly70%peoplewhoarein
online.only25%peoplearesatisfiedand8%arestronglysatisfiedwiththedigital contract.
5)QuarterlyStatement:

Number percent
ofPeople
Validnotinveestin online 30 30%

Stronglydissatisfied 8 8%
Dissatisfied 9 9%
Nutaral 16 16%
Satisfied 23 23%
Stronglysatisfied 14 14%
Total 100 100%
Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people30peoplearenotinvestinonlinetrading.Itmeans30%peoplenot
preferredquarterlystatement.Thereareonly70%peoplewhoareinonline.Only23%
peoplearesatisfiedand14%arestronglysatisfiedwiththequarterlystatement.
6)Onlinefundtransferfacility:

Numberof
People Percent
Valid Notinvestinonline 30 30%
Stronglydissatisfied 9 9%

Dissatisfied 7 7%

Neutral 18 18%

Satisfied 25 25%

Stronglysatisfied 11 11%

Total 100 100%

Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people30peoplearenotinvestinonlinetrading.Itmeans30%peoplenot
preferredonlinefundtransferfacility.Thereareonly70%peoplewhoareinonline.
Only25%peoplearesatisfiedand11%isstronglysatisfiedwiththeonlinefund transferfacility.
7)TradingAnywhere:

Numberof
People Percent
Valid Notinvestinonline 30 30%
Stronglydissatisfied 6 6%

Dissatisfied 8 8%

Neutral 22 22%

Satisfied 22 22%

Stronglysatisfied 12 12%

Total 100 100%

Interpretation:
Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people30peoplearenotinvestinonlinetrading.Itmeans30%peoplenot
preferredtradinganywhere.Thereareonly70%peoplewhoareinonline.Only22%
peoplearesatisfiedand12%arestronglysatisfiedwiththetradinganywhere.
8)Webbasedproduct:

Numberof
People Percent
Valid Notinvestinonline 30 30%
Stronglydissatisfied 7 7%

Dissatisfied 14 14%

Neutral 16 16%

Satisfied 22 22%

Stronglysatisfied 11 11%

Total 100 100%

Interpretation:
Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people30peoplearenotinvestinonlinetrading.Itmeans30%peoplenot
preferredwebbasedproduct.Thereareonly70%peoplewhoareinonline.Only22%
peoplearesatisfiedand11%isstronglysatisfiedwiththewebbasedproduct.
 Q:5ifyoupreferofflinetradingthentheratethefollowingonascale
1-5
where1isstronglydissatisfiedand5isstronglysatisfiedaccordingto yourpreference.
(1)Simple:

Numberof Percent
people
Notinvestinoffline 69 69%
Dissatisfied 2 2%
Neutral 5 5%
Satisfied 15 15%
Stronglysatisfied 9 9%
Total 110 100%
S imple

60

P erc ent

40

20

2)Easytounderstandandoperate:

Numberof Percent
People
Notinvestinoffline 70 70%

Dissatisfied 3 3%

Neutral 8 8%

1 NotinvestinDissatisfie Neutral Satisfie Stronglysatisfied offline d d

Interpretation:
Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people70peopleareinvestinonlinetrading.Itmeans70%peoplenot
preferredspeed.Thereareonly30%peoplewhoareinoffline.Only15%peopleare
satisfiedand9%isstronglysatisfiedwiththespeed.
 Satisfied 11 11%

Stronglysatisfied 8 8%

Total 100 100%

Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof10070peopleareinvestinonlinetrading.Itmeans70%peoplenotpreferred
easytounderstand&voperate.Thereareonly30%peoplewhoareinoffline.Only11%
peoplearesatisfiedand8%isstronglysatisfiedwiththeeasytounderstand& operate.
3)DirectContact:

Numbero fPercent
people
Notinvestinoffline 70 70%

Stronglydissatisfied 1 1%

Dissatisfied 2 2%

Neutral 6 6%

Satisfied 16 16%

Stronglysatisfied 5 5%

Total 100 100%

 Interpretation:
Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people70peopleareinvestinonlinetrading.Itmeans70%peoplenot
preferreddirectcontact.Thereareonly30%peoplewhoareinoffline.Only16%
peoplearesatisfiedand5%isstronglysatisfiedwiththedirectcontact. 4)MoreReliable:

Numberof Percent
people
Notinvestinoffline 70 70%
Dissatisfied 7 7%
Neutral 10 10%
Satisfied 7 7%
Stronglysatisfied 6 6%
Total 100 100%
More reliable

60

P erc ent
40

20

0
Not inves t in Dis s atis fie Neutral S atis fie S trongly s atis fied
offline d d
Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people70peopleareinvestinonlinetrading.Itmeans70%peoplenot
preferredmorereliable.Thereareonly30%peoplewhoareinoffline.Only7%people
aresatisfiedand6%isstronglysatisfiedwiththemorereliable.
5)convenient:

Numberof
people Percent
Notinvestinoffline 70 70%
Stronglydissatisfied 1 1%
Dissatisfied 7 7%
Neutral 8 8%
Satisfied 8 8%
Stronglysatisfied 6 6%
Total 100 100%

C onvenient

60

40

P erc ent

20

0
Not inves t S trongly Dis s atis fie Neutra S atis fie S trongly
in Dis s atis fie d l d S atis fied
Offline d

Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people70peopleareinvestinonlinetrading.Itmeans70%peoplenot
preferredconvenient.Thereareonly30%peoplewhoareinoffline.Only8%people
aresatisfiedand6%isstronglysatisfiedwiththeconvenient 6)Moreservicefrombrokers:
 Number Percent
ofpeople
notinvestinoffline 70 70%

stronglydissatisfied 1 1%

dissatisfied 2 2%

neutral 7 7%

satisfied 13 13%

stronglysatisfied 7 7%

Total 100 100%

Interpretation:

Wecanseefromthetableandgraphthatmostofthepeoplearedoingonlinetrading
outof100people70peopleareinvestinonlinetrading.Itmeans70%peoplenot
preferredmoreservicesfrombrokers.Thereareonly30%peoplewhoareinoffline.
Only13%peoplearesatisfiedand7%isstronglysatisfiedwiththemoreservices frombrokers.
Q:6Isthereanyhiddencostintrading?

Numberof
people Percent
Yes 71 71%
No 29 29%
Total 100 100%

Interpretation:

Is there any hidden c os t in trading ?

 80

60

Wecanseeabovegraphandtablemostoftheinvestorsaresaidthattherearemany
P erc ent

40
hiddencostinonlinetrading.Here71%investorsaresaidhiddencostchargeand
29%investorsaresaidnohiddencostcharge.
Q:7Areyousatisfiedwithcurrentserviceyouuse?
20

Numberof
0 people
Percent
Y es No
Yes 90 90%
Is there any hidden c os t in trading ?
No 10 10%
Total 100 100%

Are you s atis fied with current s ervic e you us e?

100

80

P erc ent
60

40

20

0
Y es No

Areyousatisfiedwithcurrentserviceyouuse?

Interpretation:

Wecanseeabovegraphandtablemostoftheinvestorsaresatisfiedwiththeir
currentservice.Here90%investorsaresatisfiedwiththeircurrentusingserviceand
10%investorsarenotsatisfiedwiththeircurrentservice.
Q:8 PersonalDetails:

Age:

Numberof Percent
person
Below20years 5 5%
21to30years 57 57%
31to40years 22 22%
41to50years 10 10%
50yearsabove 6 6%
 Total 100 100%

60

50

40
P erc ent

30

20

10

0
Below20years21to30years31to40years41to50years50yearsabove

Interpretation:

Wecanseeabovegraphandtablethatbelow20years5%investorsareinvestand21
to30years57%investorsareinvestand31to40years22%investorsareinvest
and41to50years10%investorsareinvestand50yearsabove6%investorsare investinsharemarket.
Gender:

Numberof
people Percent
Male 91 91%
Female 9 9%
Total 100 100%

100

80

60
P erc ent

40

20

0
Male Female
Interpretation:

Wecanseeabovegraphandtable91%malepersonsareinvestinginsharemarket
and9%femalepersonsareinvestinginsharemarket.
Occupation:

Numberof Percent
people
Student 1 1%
Business 29 29%
Service 59 59%
Retired 2 2%
Farmer 9 9%
Total 100 100%
60

50

40
P erc ent

30

20

10

0
S tudent Bus ines s S ervic e Retired Farmer

Interpretation:

Wecanseeabovegraphandtablethat1%studentpersonisinvestinginshare
market.29%businesspersonsareinvestinginsharemarket.59%servicepersons
areinvestedinsharemarket.2%retiredpersonsareinvestinginsharemarket.9%
farmersareinvestinginsharemarket.
Incomes:

Numberof Percent
people
Lessthan10,000 40 40%
From10,001to20,000 48 48%
 From20,001to30,000 7 7%
From30,001to40,000 2 2%
From40,001to50,000 3 3%
Total 100 100%

50

40

30
P ercent

20

10

0
Lessthan10,000From10,001toFrom20,001toFrom30,001to From40,001to

20,000 30,000 40,000 50,000

Interpretation:

Wecanseeabovegraphandtable40%personsareincomeislessthan10,000.48%
personsareincomefrom10,001to20,000.7%personsareincomefrom20,001to
30,000.2%personsareincomefrom30,001to40,000.3%personsareincomes
40,001to50,000areinvestinsharemarket.

FINDINGS

1.Investorschoosetodoonlinebuyingandsellingextrathanofflinetrading.

2.Respondentsaresatisfiedwiththeseservice.

3.Inon-linebuyingandselling,theysupplyextrachoicetoon-linefundswitch
facility,buyingandsellinganywhereinandspeed&secrecy.

4.68%respondentfavortodolongtimeinvestment,32%respondentchoosetodobrieftime
periodinvestment.

5.70%buyersaredoingon-linebuyingandsellingand30%buyersaredoingofflinebuyingand selling.
 6.Mostofthefolksdothenetbuyingandsellingduetolossoftime.

7.Thetradersaregladapproximatelythevelocityofon-linetrading.

8.Thebuyersarehappyapproximatelythesecrecyofonlinetrading.

9.Thetradersaregladapproximatelytheeasyeasyinpayment&receipton-line trading.

10.Thetradersaregladapproximatelythevirtualagreementofonlinetrading.

11.Thetradersaregladapproximatelythequarterlydeclarationofonlinetrade.

12.Theinvestorsareneutralabouttheonlinefundtransferfacilityofonlinetrading.

13.Thetradersaregladapproximatelythebuyingandsellingeverywhereofonlinetrading.

14.Theinvestorsareneutralaboutthewebbasedproductofonlinetrading.

15.Theinvestorsaresatisfiedaboutthesimpleofofflinetrading.
16.Theinvestorsaresatisfiedabouttheeasytounderstandandoperateofoffline trading.
17.Thebuyersaregladapproximatelythedirectagreementofofflinetrading.

18.Thebuyersareimpartialapproximatelythegreaterdependableofofflinetrading.

19.Thebuyersareimpartialapproximatelythehandyofofflinetrading.

20.Thebuyersarehappyapproximatelythegreatercarrierfromagentsofofflinetrading.
 LIMITATIONSOFTHESTUDY

Therearefewbarriersthatareassociatedwiththislookatandmadeithardtosoak uptheresearch.research

Followingarethereasons:

Timeconstrain:IfextratimechangedintotobehadImighthaveincludedextraClients.
Fewrespondentshavebeennownolongerverycooperativeforsupplyingmonthincome.
 CONCLUSION

Accordingtotheresearch,on-linebuyingandsellingishigherthanofflinebuyingand
sellingfrominvestor’sfactorofview.Thoughinbonlinebuyingandsellingbuyersare
becomingdiverseblessingslikeon-line.

fundswitchfacility,extravelocityandtheycouldexchangefromanywhere,they
locateofflinebuyingandsellingextrahandyduetosimplicityandproperlyofferings frombroker.

Inofflinebuyingandsellingthetradersarelikesimplicityanddirecttouchwithagents
sotheretiredandantiqueagebuyersarewanttoofflinebuyingandselling.

Accordingtoresearch&metheantiqueage&retiredhumanshastoenhancetheir mattersandvisiton-
linebuyingandsellingduetothefacton-linebuyingandselling ishigherthanofflinebuyingandselling.

Becauseinon-linebuyingandsellingtheofferingsaregiventobuyerslikespeed,on
linefundswitchfacility,buyingandsellingeverywhereetc.sobuyershastochoose on-linebuyingandselling.

RECOMMENDATIONS
Inon-linetrading,extracreditscorepublicityhavetoacceptequalasgiveninofflinetrading.

1)Inofflinetrading,agentsoughttobedevotedwiththeircustomers.

2)Inon-linetrading,customershavetoreceiverightdemo.

3)Retiredhumanshavetobeguidedbecauseithasbeenvisiblethattheymaybe doingoff-
linebuyingandsellingandnownolongeron-linebuyingandselling.
4)Retiredpeoplewanttobemadeawarewiththebenefitsofon-line.
 BIBLIOGRAPHY

Books:

1)ByDonaldRCooper&PamelaSSchindler,“BusinessResearchMethods”,
EighthEdition(2003),TataMcGraw-Hill,NewYork.

2)BySPGupta,“StatisticalMethods”,ThirtyFifthRevisedEdition(2007),Sultan
Chand&SonsEducationPublishers,NewDelh

Websites www.sebi.com
 APPENDIX
QUESTIONNAIRE

RespectedSir/Madam,
I,RadhikakothadiyaandNehalmakhanasa,thestudentsofM.B.A.ofR.H.PATEL
INSTITUTEOFMANAGEMENT,asapartofmyacademiccurriculumhave
undertakenaprojecton“COMPARISONBETWEENONLINEANDOFFLINETRADING.”
IRequestyoutopleasesparesomeofyourvaluabletimetofillupthisquestionnaire.
Iassureyouthattheinformationgivenbyyouwillbeutilizedfortheacademic
purposeonlyanditwouldbekeptconfidential.

(1)Doyouinvestyourmoney?

(1)Yes (2)No

(2)Wheredoyouwanttoinvestyourmoney?

(1)ShareMarket(2)MutualFund

(3)Insurance(4)BankFixedDeposit

(5)PostalSchemes(6)DerivativeMarket

(3)Whatkindofinvestmentdoyouprefer?

(1)Longterm

(2)Shortterm

(4)Whichtypeoftradingsystemyouareusing?

(1)Online (2) Offline {If(1)gotoquestionno.5,7or(2)gotoquestionno.6}

(5) Ifyoupreferonlinetradingthenratethefollowingonascaleof1-5,here1is
stronglydissatisfiedand5isstronglysatisfiedaccordingtoyourpreference.

(6)Ifyoupreferofflinetradingthenratethefollowingonascaleof1-5where1is
stronglydissatisfiedand5isstronglysatisfiedaccordingtoyourpreference.

PARTICULARS 1 2 3 4 5
Strongly Dissatisfied Neutral Satisfied Strongly
dissatisfie satisfie
d d
Speed

Secrecy

Easeinpaymentandreceipt

Digitalcontract

Quarterlystatement

Onlinefundtransferfacility

Tradinganywhere

Webbasedproduct

PARTICULARS 1 2 3 4 5
Strongly Dissatisfied Neutral Satisfied Strongly
dissatisfie satisfie
d d
Simple

Easytounderstandandoperate

Directcontact

Morereliable

Convenient

Moreservicesfromthebroker

(7)Isthereanyhiddencostinonlinetrading?

(1)Yes (2)No
(8)Areyousatisfiedwiththecurrentservicesyouuse?

(1)Yes (2) No
 (9)Anysuggestion…………………………………… …………………………………………………………….
…………………………………………………………….
…………………………………………………………….

(10)PersonalDetails Name:……………………………………………………..

Address:…………………………………………………..
……………………………………………………………...
……………………………………………………………...

Age:
(1)Below20Years(2)21To30Years
(3)31To40Years(4)41To50Years
(5)50YearsAbove Gender:
(1)Male (2)Female

Occupation:

(1) Student (2) Business (3)Service

(4) Retired(5) Farmer

Income:(PerMonth)

(1)LessThan10,000(2)From10,001to20,000

(3)From20,001to30,000(4)From30001to40,000

(5)From40,001to50,000 (6)From50,000Above
Thankyou