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Female investors are a new wave of share traders

24 September 2007
In the traditionally male dominated world of share trading, a new wave of independent women are striking out into the stockmarket, Alliance Trust have noticed.

Research has shown that, despite market volatility at the beginning of the 21st century, the early ‘noughties’ proved a popular era for new marketeers to make their first venture into online trading, and a strong trend can be seen in the number of female recruits.

Alliance Trust found that while the late 1990s saw a male domination of the market, since the turn of the century a growing number of women traders have emerged; three out of four female online investors began trading within the last five years, with more than half making their trade decisions independently.

More than a third of those trading online today first dipped their toe into the market three to five years ago, while only a quarter started six to ten years ago, and women were the leaders of this recent rise.

Compared to the 61 per cent of men who have made their first online purchase during the last five years, 75 per cent of female investors made their first movement in the market during this time, which suggests that they have been encouraged to do so by the freedom to trade in their own time and by their own terms.

Women are also driven to invest by clear motives and goals, the research found, such as the 59 per cent that do so in order to generate their own wealth. Another 32 per cent say that investing in their retirement is their main motivation, and saving for a rainy day is the prior reason for 31 per cent of women investors.

While 51 per cent of women are eager to make their own decisions regarding online investment, 33 per cent ask advice from their spouse or partner, compared to just 14 per cent amongst their male counterparts who would do the same.

Claudia Philips, Managing Director of Investment Dealing at Alliance Trust, comments: “It’s great to see that women are standing out in this surge in new online traders, taking control of their investments and actively managing their financial future. Online investment dealing offers you the chance to trade wherever you are and whenever you want and this flexible, non-threatening environment seems to suit the lifestyles of modern, independent women.

“It’s also fascinating to reflect that the difficult period after the stockmarket crash actually proved the main recruiting ground for today’s online traders, eclipsing the supposed army of day-traders of the late nineties. Increased reliance on the internet in our daily lives is no doubt the main reason for this surge in online investment, and as a result share dealing websites now need to ensure they cater for the needs of everyday investors.”

Furthermore, with women aged between 25 and 34 spending 20 per cent more time online than men, Alliance Trust predicts that this trend will continue to gather pace.

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