Factors Attracting Young Generations to Online Trading A Case Study

Abstract

This research addresses the factors attracting young generations to online trading. As it was noted in the recent 5 years, mainly during and after the COVID-19 pandemic, a great interest in online trading markets was noted, especially within the young generation of ages between 18-35 years old. Fintech Asset Pro SDN. BHD. was taken as a sample to study the described case within Kuala Lumpur, Malaysia, between the years 2019 to 2023. The percentages of growth in online traders between the years 2019 to 2023 show that the number of traders within the age bracket (18-35 years old) is growing on a yearly basis, where a 20% increase in the year 2020 compared to the base year 2019 and up to 564% in the year 2023 is a strong indicator of young people's mindset. The strong and continuous growth in the numbers of online traders within the age bracket (18-35 years old) implies that this trend of growth in the number of youth willing to enter the online trading markets. An increase in online trading volume of $15,124,500.02 $ to $259,810,715.44 $ has occurred between the years 2019 (base year) and 2023, which was made by online trades of ages between 18-35 yrs. This increase represents a significant jump of 1618%. The research has found that the factors attracting the young generation to online trading, as per answers to questionnaires sent to 54 traders and 5 professional experts, were easier profit, less physical work, more options for work, Less restrictions, and official paperwork. The research main recommendations are to fully legalize online trading and make necessary regulations to protect the interests of all stakeholders, strengthen safety and security procedures to protect traders, improve the education system to target online trading in different levels of education, and remove obstacles on electronic payment and transaction crypto currency. The researcher found out the topic of online trading has a strong potential for further studies and extensive analysis. The following are suggestions of further research topics: The effect of artificial intelligence (AI) and robotics on online trading, Risk management in online trading markets, Supplementary regulatory requirements for online trading, Develop set ethics and governance for online trading, How supply chains work in online trading markets, Effect of trading hubs on commodity costs, Types and how trading hubs/platforms work in the financial markets, and study if the COVID-19 pandemic has a permanent effect on boosting online trading and how it affected customer-supplier preferences.