When you submit your query using Toad, what computer is doing the actual processing of your SQL? Is it my computer or am I submitting it up to the server, the server is doing the processing and just returning the recordset to me?
You are submitting the query to the database server and it is doing the work to genereate the rows. We are only bringing the rows back over the network.
The only exception to that is Cross-Connection Queries. In that case a portion of the query may be generated localling. For details on Cross-Connection queries please see this video.