In an online examination, the test is conducted through Internet. The server may be located at the client premises or somewhere on Internet with a service provider.

The candidates may access the test through internet directly or in a center through a proxy server connected to Internet.

This Online test needs continuous and reliable Internet connectivity. Else the test may suffer. The Internet bandwidth plays a major role in online tests.

If the number of candidates in a certain test center are less than 10, one may look for online test, instead of Computer based test with local server.

One advantage of online tests is lesser cost and the disadvantage being the dependence on Internet connectivity.