From savers to traders – here’s why more women are trading than ever before!
The incredible Wolf of Wall Street is probably what comes to for most when pondering the world of high-stakes finance. Gone are the days of suit-wearing male traders dominating NYSE, calling out trades at the best of major firms. More women are trading today than ever before… and when they do they get results.
In celebration of International Women’s Day (March 9) we highlight some of the most powerful businesswomen in the world and reveal just how prolific female traders have become. What’s more, we’ll show you how to start your trading journey.
Taking a seat at the trading table
Trading used to be the purview of businessmen and huge investing firms. With access to the internet and the availability of trading tools, more and more women are recognizing the power of online trading.
Fidelity Investments, one of the world’s biggest investment firms, released astonishing data in its 2021 Women and Investing Study. It revealed that more women are recognizing the power of investing and taking steps to help funds grow. 9-in-10 women plan to take steps to grow their wealth.
The study found that 67% of respondents are putting money outside of retirement accounts and into the stock market, a 50% increase from 2018 when the company previously released a study.
From saver to trader
The pandemic has affected billions of people and many are realizing that traditional sources of income, such as a 9-to-5 office job, isn’t as secure as it once was.
The events of the past three years have proven to be a powerful catalyst for even women to make owning their financial freedom a priority. This means creating emergency savings, financial plans and moving away from just saving and entering the world of online trading.
Where are women investing their money?
Analysis of the firm’s 5 million customers over the last ten years finds reveals that, on average, women outperformed their male counterparts by 40 basis points or 0.4%, reports Fidelity.
Here’s where female traders are putting their funds:
67% – Individual stocks or bonds
63% – Mutual funds or ETFs
50% – Money market funds or CDs
24% – Cryptocurrencies
23% – ESG / sustainable investments
Forex proves popular
Online broker review website, Brokernotes, revealed that many female traders are breaking into the world of online trading. In its “Modern Trader Report”, shows that female traders are more likely to enter Forex trading and that they favor trading platforms that are designed for ease of use.
The company reports that women are more “risk-averse” than men and prefer social trading. When it came to trading platforms “intuitive and user-friendly” are the most preferred options.
What’s incredibly telling about the shift in financial traders is that of 26,000 traders the company questioned, 41.8% of female respondents classed themselves as experienced traders.
World’s wealthiest women:
Over the past 10 years, there’s been a reported rise in the number of female business owners worth billions. The ever-popular Forbes Rich list reveals that some of the world’s wealthiest women have grown their fortunes considerably in the past three years alone.
Top 10 Richest Women In The World:
- Francoise Bettencourt Meyers
- Net Worth: $82.5 Billion
- Profession: Owner of the company L’Oreal
- Alice Walton
- Net Worth: $66 Billion
- Profession: Owner of Wal-Mart
- MacKenzie Scott (former Bezos)
- Net Worth: $60.2 Billion
- Profession: American novelist and philanthropist
- Julia Koch
- Net Worth: $62 Billion
- Profession: Owner of Koch Industries
- Yang Huiyan
- Net Worth: $33.0 Billion
- Profession: Majority Shareholder in Country Garden Holdings
- Jacqueline Mars
- Net Worth: $44.5 Billion
- Profession: American heiress and investor
- Susanne Klatten
- Net Worth: $29.5 Billion
- Profession: Owns Stakes in SGL, Altana, and BMW
- Fan Hongwei
- Net Worth: $15.7 Billion
- Profession: Chairperson to Hengli Petrochemical
- Iris Fontbona
- Net Worth: $20.7 Billion
- Profession: Billionaire Businesswoman
- Laurene Powell Jobs
- Net Worth: $20.2 Billion
- Profession: Founder of Emerson Collective