1, trading channel
On-site trading refers to trading through the stock exchange, so if investors want to buy on-site funds, they must first open a stock account through brokers.
There are many purchase channels for OTC index funds, such as banks and third-party consignment platforms. The purchase of OTC index funds does not need to open a securities account, but can be registered and certified on the corresponding platform.
From the perspective of trading methods, it is more convenient to buy index funds off-site, and it is easier for novice investors to buy index funds off-site.
2. Trading method
On-market index funds are traded at real-time prices, and off-market index funds are purchased and redeemed at net value. The former belongs to the transaction between investors, while the latter belongs to the transaction between investors and fund managers.
3. Transaction rate
The transaction fee threshold of index funds in the market is 5 yuan. If the minimum transaction cost in 5 yuan can be waived through negotiation with brokers, the transaction cost of on-site index funds will be lower than that of off-site index funds. Otherwise, index funds on the market are not suitable for small investments.
4. Trading threshold
The threshold for the subscription of index funds on the market is 100, and the price of each share is around 3 yuan, so the initial investment is around several hundred yuan. The threshold of OTC index funds is much lower, generally starting from 10 yuan.
5. Fixed investment of the Fund
Both on-site and off-site index funds can make fixed investment, but on-site index funds can only be operated manually, and automatic fixed investment cannot be set, which is relatively troublesome to operate.