Social trading apps help more women move to online trading
As South Africa commemorates Women’s Day on 9 August, more women are changing the status quo of an industry that many perceive to be male-dominated.
Dany Mawas, Regional Director at INFINOX, says that while women have been largely underrepresented in the trading industry, female participation in online trading is on the up, signifying a welcome change in the previously male-dominated arena.
While several senior positions within business and government continue to follow patriarchal lines, online trading is an industry for everyone.
Female participation in online trading is steadily increasing, and according to INFINOX’s insights, Quarter 2 of 2021 recorded a 291% increase compared to the same quarter a year prior. Notably, younger female clients are also getting involved in trading, with 71% of them under the age of 40, and 39% under 30.
This can be attributed to the impact of technology on the industry and the rise of social trading apps such as INFINOX’s IX Social platform.
The social element of the platform has provided women with the opportunity to interact with other traders, bringing them together and allowing them to share trading experiences in a relaxed environment.
It allows traders to discuss ideas and trades, and in an industry, that is overloaded with information, being able to dissect the right information is crucial for the decision making process.
The pivotal point of the platform is that it allows traders to access financial markets from anywhere and at any time across the world from the comfort of their mobile devices.
Research by the University of Tilburg, Netherlands, suggests that women are more risk-averse than their male counterparts, a good trait to have in the world of trading.
It is also thought that men are more likely to hold on to a losing trade, while women tend to cut their losses sooner, which in the long run will improve their profits and losses.
The key to inclusivity in the trading industry lies in education and accessibility to financial markets. Education is essential in improving one's trading aptitude, and the more people trade and learn, the better they become. Platforms such as IX Social harness the expertise of the best educators and mentors to help traders perform to their best.
INFINOX also conducts regular educational webinars for its clients, many of which are hosted by female portfolio managers and traders - a proof point underlining that some of the best in the business are women.
When success is seen it inspires others to follow suit, and as the number of female traders continues to increase and they prosper, more will engage in the financial possibilities that come with online trading.