COMPLETION REPORT
Japanese-Style Mobile trading in Malaysia: Opportunities and Challenges
Dr. Lee-Lee Chong (+2)
Senior Lecturer
Faculty of Management
Multimedia University
This study examined antecedents affecting the intention to use mobile stock trading among Malaysian youths (40years old and below) especially on Rakuten Trade’s mobile app. In addition to a questionnaire survey, a site visit
interview to Rakuten Trade was also conducted. The team was briefed by Mr. Kaoru Arai, the MD of the company
on its background, platform features and future plan. 550 printed questionnaires were distributed in the Klang Valley
together with the online survey. A total of 469 usable responses were gathered; 373 responses from investors and 96
from non-investors.
Of the investors, 65% reported using mobile stock trading app but only 22% of these investors use Rakuten Trade’s
platform. 81% of the total investors indicated that their interest in the service provided by Rakuten Trade is based on
the low brokerage fees. System security, faster execution and low brokerage fees as the top most important mobile
trading’s features to Rakuten trade’s users while system security, low brokerage fees and the user-friendly interface
for the non-users.
For the non-investors, majority knows and plans to use mobile stock trading but only 5% may consider Rakuten
Trade’s app. Most of them are attracted by the low brokerage fee. System security is still perceived as the top mostimportant feature, followed by technical support and low brokerage charge. The non-investors lack confidence inusing the platform.
All the respondents prefer simple research report, fundamental information and technical tools. Additionally, all theinvestors reported not being keen on loyalty rewards, online chat and robo-advisor features, and similarly, the noninvestors shared the same view except for online chat.
We also looked at how perceived risk, perceived benefits, perceived usefulness, attitude, perceived behavioral
control and social influences affect the intention to use mobile trading platform. Perceived benefits, attitude andbehavioral control motivate investors’ intention and attitude has the greater effect. In contrast, social influence is theonly significant driver to influence the intention among the non-investors.

More awareness program to popularize Rakuten trade’s services is required as most investors are attracted to its low
brokerage fee. System security with adequate hardware and software support for fast execution would also attract
more investors. Rakuten Trade’s current users could be the medium to long term investors as they put more weighton company fundamental information. Thus, having a simple research report and fundamental information arevaluable; however, the current loyalty reward is not attractive enough and collaboration with widely-usedmerchants/cash reward would be appealing.
Malaysian youths are internet-savvy, risk-takers, resourceful and have the right attitude and ability to use mobilestock trading platform. Therefore, it is easy for Rakuten Trade to expand its market shares among the young investors
because of its low transaction cost. The biggest challenge however is to attract new investors and to expand the retailinvestors’ market shares. The great experience of Rakuten Trade’s current users could influence more people toinvest in the stock market. Hence, a simple, mobile and low-cost solution is the right solution for youth’s investment
needs.

Publication of the Results of Research Project:
Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)
Not applicable
Thesis (Name of Journal and its Date, Title and Author of Thesis, etc.)
Planned to publish the findings in Journal ‘Telematics & Information’/ “Expert System with Application”.
Book (Publisher and Date of the Book, Title and Author of the Book, etc.)
Not Applicable