In recent years, the importance of electronic trade in digital content has become evident. However, this new phenomenon has brought new challenges with itself in various areas, which demands fast and efficient responses. While litigation has lots of limitations and deficiencies, alternative means have been suggested and formulated to complement the dispute resolution system. Among (ADR) systems, Arbitration is the most widely used (ADR) mechanism for resolving disputes in electronic commercial matters. Online arbitration is fully admissible and effective under the current legal framework of many countries, provided that certain requirements are met. This paper examines the advantages of online arbitration and methods of its performance in cyberspace. It concludes that online arbitration is a valid and effective method of dispute resolution and the arbitral awards given by online arbitration are enforceable under the rules of New York Convention.