Trading the financial markets has been a man's dominion for a long time. In fact, when we think of a ‘Trader' the word conjures up an image of a man, Type-A, sharply suited, overly confident, and engaging in cut-throat competition. It's how we see traders because movies have imprinted this version of the trader in our minds; from Leonardo DiCaprio as Jordan Belfort in Martin Scorsese's Wolf of wall street to Michael Douglas as Gordon Gekko in Oliver Stone's Wall Street. But times are changing, and reality often differs from Hollywood.
Women and Trading, Trending Upward
Non Traders would be surprised to see that most traders are in fact at home and not in skyscrapers, dressed in comfy clothes and not in suits, and are often women not just men.
It's becoming increasingly apparent that there's actually been a shift going on over the past few years. More women traders have been joining the arena, and the numbers have continued to rise. But has this rise been supported by this year's pandemic?
Trading Through 2020's Pandemic
Statistics show that the number of women who ventured into online trading grew by 10% in the 1st quarter of 2020. The uptrend in female traders has continued through the covid-19 pandemic while more businesses have had to temporarily shut down in order to curb the spread of the virus. Lockdowns have meant more women working from home, and just like their male counterparts switching online for everything, from shopping, to work and investments. So, it's no surprise that trading, on the whole, has gained popularity and the number of women among traders has continued to rise.
But, crediting lockdowns for the rise of women in trading would be unfair, to say the least. Women's presence in online trading has been on the rise for the last two decades, as online platforms leveled the trading playing field.
Online Trading and New Opportunities
Online platforms that appeared at the start of the century have made trading more accessible to everyone, and that's paved the way for a rise in the number of women trading too.
From an arena dominated by men, where women were less welcomed and hence largely absent, the online arena doesn't distinguish between genders and allows equal access with no gatekeepers. Women traders have grown in numbers and now make up about 19% of online traders worldwide.
Women and Trading: A Perfect Pairing
The truth of the matter is that women have always fit into the trading and investment sector; Studies have shown that in general women have a more sensible approach to finances, investing, and money management than men do.
Money is genderless of course but consider this; in a recent poll, 13,613 traders were asked to specify how much money they deposit when opening a trading account with a broker. Over 50% of female respondents said that they deposit less than $500, compared to 42% of males. Moreover, the average deposit of a female trader is estimated at $1,821, which is $424 less than male traders.
What does this tell us about women? They are better at managing money, and money management is one of the key drivers when it comes to succeeding in trading. This level of sensibility can be the difference between making or losing money.
Now, to top it all off, when comparing trading profits between male and female traders, on average a woman makes $5,000 more than a man. Surprising? It may take some time before the balance between men and women in the trading sector is completely redressed, but results from these studies continue to show us that, with more and more women joining the world of trading, the gap is slowly decreasing.
Provided by Axiory