How does online investment works?is it safe?

On-line investment is nothing but a comfortable and easy way to buy financial products.It is completely safe and very convenient.

to give an example lets say that u want to buy equity related financial product such as shares

u need the following

1) bank account
2) demat account
3)trading account with one of the on-line brokers

How this thing works:

Lets say u want to buy shares.Using the on line broker you place a buy order.This on line broker is nothing but an order routing system by which your order will be routed to the Stock exchange.

As soon as your order is matched with a sell order within the exchange an electronic trade confirmation is sent by the exchange to the on line broker.The broker will forward this to you, confirming that your order has been executed and that you will receive the bought shares.

De-mat account is an account for shares.Like a bank account which holds money, a demat account holds shares in electronic form.Once your order has been executed , the bought shares will be credited to your demat account.

Similarly since u need to pay for the bought shares, money will be debited from Ur bank account.

Online investment encompasses more things like buying mutual funds, trading in commodities and derivatives, investing in fixed deposits etc.

hope this helps

Cheers!!!!!!!!!!!!!!!

Safe??

No, it's risky. If you're looking for a big return on your money you have to take a few risks.

That's how life is... a gamble.