Are On-Screen Keyboards Really More Secure?

The built-in on-screen keyboard that comes with many operating systems is designed to help people who are unable to use a physical keyboard because of disabilities. Due to this, an on-screen keyboard behaves as much like a real keyboard as possible and it's activity will most likely be logged by a keylogger.

On-screen keyboards specifically designed for security (on a bank's website, for example) are a different story and are likely more secure against keyloggers.

http://www.viruslist.com/en/analysis?pubid=204791931

On-screen keyboards prevent a keyboard dongle from recording your keystrokes. There are other methods for recording keystrokes an on-screen keyboard will not prevent, though.