This paper analyzed the effect of online trading on investors’ trading behavior based on investors’ trading data provided by a major security firm in Taiwan. Our empirical findings are summarized as follows: 1. Male and the younger traders preferred online trading. Investors who had better gross return tend to switching to online trading mechanism. 2. Even though investors traded more actively after going online, their trade performance is not negatively affected. 3. Online trading does not significantly increase information-triggered trades (speculative trading), even though there is more access to information after going online. 4. Finally, the order execution efficiency of online trading is better than phone-based trading.
Lin, Y. C. George; Kang, Y. C. Elena; and Chiu, Chiung-Lin, "Understanding Online Traders: Trading and Performance in Common Stock Investment" (2009). ICEB 2009 Proceedings. 18.