Li, Lee & Cude, Intention To Adopt Online Trading: Identifying the Future Online Traders

Li, Y. M. & Lee, J. & Cude, B. J. (2002).  Intention to adopt online trading: identifying the future online traders. Financial Counseling and
, 13(2), 49-64.

Intention To Adopt Online Trading: Identifying the Future Online Traders

Yinghao Mickey Li
, Jinkook Lee
and Brenda J. Cude

Based on investment behavior and innovation diffusion theories, intention to adopt online trading was investigated using 2000-01 MacroMonitor data. The impacts of the following determinants were examined: investment-related factors (type of brokerage accounts and trading frequency and volume); psychological factors (confidence, investment risk preference, price sensitivity, attitudes toward human interaction, and investment decision making style); technology-related issues (familiarity with online shopping and banking); and demographics. Investors who are younger and more willing to take investment risk intend to adopt online trading, whereas investors who value human interaction and those with full brokerage accounts do not have an intention to adopt.

Key words: Online Trading, Online Investment, Adoption, Diffusion, E-commerce, Innovation

1. Yinghao Mickey Li, Capital One Financial Corporation, 3901 Dallas Park Way, Plano, TX 75093. Phone: 489-241-7278. Fax: 888-722-8033. E-mail:

2.  Jinkook Lee, Professor, Ohio State University, 1787 Neil Ave, Columbus, OH 43210. Phone: 614-247-7892. Fax: 614-688-8133. E-mail:

3.  Brenda J. Cude, Professor, University of Georgia, Dawson Hall, Athens, GA 30602. Phone 706-542-4857. Fax: 706-542-4397. E-mail:
This paper is based on the first author’s thesis, which won the 2002 American Council on Consumer Interests thesis award. The dataset was provided to the second author by Larry Cohen, the director of Consumer Financial Decisions of SRI Consulting Corporation. The authors are grateful to Larry Cohen for sharing the 2000-01 MacroMonitor data.

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