In recent
years, the world of finance has witnessed a significant shift in gender
dynamics, with an increasing number of women taking charge of their financial
futures and venturing into the realm of investing, choosing gold, EUR/USD, Tesla and indices ETFs as the most popular trading instruments.
Despite
long-standing stereotypes and barriers, data from XTB gathered to celebrate International
Women’s Day (IWD) on 8 March reveals that the proportion of female investors is
steadily rising around the globe.
The rise of
female investors is not limited to the single markets. Data from XTB reveals
that countries such as Romania and the Middle East have the highest equality in
financial matters, with the percentage of women among new investors exceeding
20 percent.
Dr Anna Grygiel-Tomaszewska
“We are
slowly disenchanting the myth that women are a separate entity on the capital
market, or even something exotic,” said Dr Anna Grygiel-Tomaszewska from the
Warsaw School of Economics.
Although
men still make up the dominant part of retail investors, and in some countries,
women’s participation rates are lower, in many markets where XTB operates, a
positive change in trend is visible. Especially among the group of new
investors, where women in 2023 accounted for an average of 12%, and in the MENA
region, where every fourth new trader was a woman.
Several
factors have contributed to the growing interest in investing among women.
Katarzyna Sekścińska from the University of Warsaw, attributes this change to a
visible process taking place in women’s attitudes and beliefs, both in terms of
their perception of investing and their own opportunities in this field
Katarzyna Sekścińska
“This
change does not come from nowhere,” Sekścińska explains. “Recent
years have brought an explosion of easily accessible sources of investment
knowledge, often not requiring leaving one’s home and dedicating long hours of
study.”
Independent
research conducted by the French financial regulator last year, also on the
occasion of IWD, showed that in 2022, women constituted 30% of the local market’s
active participants.
Interestingly,
women also have completely different motivations behind investing. In the
United States, they do so primarily not for profit but to ensure a better
future for their children.
Favorite Instruments of
Female Investors
In 2023,
among the CFD instruments traded by women, stock indices, commodities, and the
major currency pair EUR/USD dominated. In the category of indices, the S&P
500, Nasdaq 100, and DAX 40 took the lead, while in commodities, gold, oil, and
natural gas were the top choices. It shows that trading interests between males
and females are almost the same.
Karolina
Nowicka, a popular Polish financial influencer known as the “Lady of
Saving,” emphasizes the impact of social media on the growing popularity
of investing among women, stating that the knowledge provided by female
investors is more accessible and relatable to other women.
Karolina Nowicka, Polish finfluencer
“Judging by
how many women have recently started to take care of their money and increase
their awareness of taking care not only of the here and now, but also of their
future, I am sure that the percentage of women as investors will increase year
by year,” the Lady of Savings forecasted.
Shifting
focus to more traditional investment vehicles, ETFs enjoyed considerable
popularity, particularly those allowing investment in entire indexes, including
IShares for the S&P 500 and Nasdaq and global stocks within the MSCI World
Index. In the Slovak market, women primarily selected ETFs, providing exposure
to the American debt securities market. This demonstrates that women, who, according to separate research, have a greater aversion to risk, prefer to choose safer investment instruments.
As risk aversion among women is higher and more common, a natural inclination towards saving rather than investing presents itself. https://t.co/gQANZfPWy5 #gambinfinancial #financialplanning #womeninfinance pic.twitter.com/TYjopknrkc
— Claudio Gambin (@GambinClaudio) October 8, 2021
The stock
market is a blend of local powerhouses (such as Poland’s Orlen and France’s BNP
Paribas) and global tech giants. The most frequently occurring companies in
female investors’ portfolios were Tesla, Apple, and GameStop.
Bridging the Gender Gap
through Education
Despite the
progress made in recent years, the gender gap in investing remains significant.
Experts agree that education is the key to bridging this divide. What is more,
data from the Central Statistical Office constantly show large differences in
earnings between the two sexes, even in the same positions. A smaller amount of
capital automatically means a smaller amount of funds available for investing.
Even despite this, women deposit more money into their investment accounts, as shown by a recent GOBankingRates survey from November 2023. Every third woman and every second man hold a brokerage account below $15,000. Meanwhile, 35% of female investors accumulate more than $35,000, whereas this figure is 30% among men.
In addition
to the need to bridge
Bridge
The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat
The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat
Read this Term the pay gap, Dr. Grygiel-Tomaszewska emphasizes the
importance of accessible and meaningful education that extends beyond mere
promotion and applies to everyday life.
“It is
gratifying that more and more female educators have been appearing recently to
show by their own example how to take care of the financial sphere,” she explained.
“Women speak to women with the same voice and communicate this in such a way
that they understand each other. In turn, understanding seemingly complicated
issues can only positively influence their presence on the financial market.”
Furthermore,
the way financial services are marketed, primarily targeting men, does not
encourage women to invest. The “macho marketing” approach is a huge
turnoff for them, as revealed by a 2023 study from Futura, a network for women
in fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Read this Term.
By
providing women with the tools and resources to make informed financial
decisions, the gender gap in investing can be narrowed, empowering more women
to take control of their financial futures.
The rise of
female investors is a testament to the breaking down of barriers and the
challenging of stereotypes in the world of finance. As more women recognize the
opportunities presented by investing and take charge of their financial
destinies, the gender gap in this field will continue to narrow.
We wish
this to all women on the occasion of International Women’s Day.
In recent
years, the world of finance has witnessed a significant shift in gender
dynamics, with an increasing number of women taking charge of their financial
futures and venturing into the realm of investing, choosing gold, EUR/USD, Tesla and indices ETFs as the most popular trading instruments.
Despite
long-standing stereotypes and barriers, data from XTB gathered to celebrate International
Women’s Day (IWD) on 8 March reveals that the proportion of female investors is
steadily rising around the globe.
The rise of
female investors is not limited to the single markets. Data from XTB reveals
that countries such as Romania and the Middle East have the highest equality in
financial matters, with the percentage of women among new investors exceeding
20 percent.
Dr Anna Grygiel-Tomaszewska
“We are
slowly disenchanting the myth that women are a separate entity on the capital
market, or even something exotic,” said Dr Anna Grygiel-Tomaszewska from the
Warsaw School of Economics.
Although
men still make up the dominant part of retail investors, and in some countries,
women’s participation rates are lower, in many markets where XTB operates, a
positive change in trend is visible. Especially among the group of new
investors, where women in 2023 accounted for an average of 12%, and in the MENA
region, where every fourth new trader was a woman.
Several
factors have contributed to the growing interest in investing among women.
Katarzyna Sekścińska from the University of Warsaw, attributes this change to a
visible process taking place in women’s attitudes and beliefs, both in terms of
their perception of investing and their own opportunities in this field
Katarzyna Sekścińska
“This
change does not come from nowhere,” Sekścińska explains. “Recent
years have brought an explosion of easily accessible sources of investment
knowledge, often not requiring leaving one’s home and dedicating long hours of
study.”
Independent
research conducted by the French financial regulator last year, also on the
occasion of IWD, showed that in 2022, women constituted 30% of the local market’s
active participants.
Interestingly,
women also have completely different motivations behind investing. In the
United States, they do so primarily not for profit but to ensure a better
future for their children.
Favorite Instruments of
Female Investors
In 2023,
among the CFD instruments traded by women, stock indices, commodities, and the
major currency pair EUR/USD dominated. In the category of indices, the S&P
500, Nasdaq 100, and DAX 40 took the lead, while in commodities, gold, oil, and
natural gas were the top choices. It shows that trading interests between males
and females are almost the same.
Karolina
Nowicka, a popular Polish financial influencer known as the “Lady of
Saving,” emphasizes the impact of social media on the growing popularity
of investing among women, stating that the knowledge provided by female
investors is more accessible and relatable to other women.
Karolina Nowicka, Polish finfluencer
“Judging by
how many women have recently started to take care of their money and increase
their awareness of taking care not only of the here and now, but also of their
future, I am sure that the percentage of women as investors will increase year
by year,” the Lady of Savings forecasted.
Shifting
focus to more traditional investment vehicles, ETFs enjoyed considerable
popularity, particularly those allowing investment in entire indexes, including
IShares for the S&P 500 and Nasdaq and global stocks within the MSCI World
Index. In the Slovak market, women primarily selected ETFs, providing exposure
to the American debt securities market. This demonstrates that women, who, according to separate research, have a greater aversion to risk, prefer to choose safer investment instruments.
As risk aversion among women is higher and more common, a natural inclination towards saving rather than investing presents itself. https://t.co/gQANZfPWy5 #gambinfinancial #financialplanning #womeninfinance pic.twitter.com/TYjopknrkc
— Claudio Gambin (@GambinClaudio) October 8, 2021
The stock
market is a blend of local powerhouses (such as Poland’s Orlen and France’s BNP
Paribas) and global tech giants. The most frequently occurring companies in
female investors’ portfolios were Tesla, Apple, and GameStop.
Bridging the Gender Gap
through Education
Despite the
progress made in recent years, the gender gap in investing remains significant.
Experts agree that education is the key to bridging this divide. What is more,
data from the Central Statistical Office constantly show large differences in
earnings between the two sexes, even in the same positions. A smaller amount of
capital automatically means a smaller amount of funds available for investing.
Even despite this, women deposit more money into their investment accounts, as shown by a recent GOBankingRates survey from November 2023. Every third woman and every second man hold a brokerage account below $15,000. Meanwhile, 35% of female investors accumulate more than $35,000, whereas this figure is 30% among men.
In addition
to the need to bridge
Bridge
The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat
The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat
Read this Term the pay gap, Dr. Grygiel-Tomaszewska emphasizes the
importance of accessible and meaningful education that extends beyond mere
promotion and applies to everyday life.
“It is
gratifying that more and more female educators have been appearing recently to
show by their own example how to take care of the financial sphere,” she explained.
“Women speak to women with the same voice and communicate this in such a way
that they understand each other. In turn, understanding seemingly complicated
issues can only positively influence their presence on the financial market.”
Furthermore,
the way financial services are marketed, primarily targeting men, does not
encourage women to invest. The “macho marketing” approach is a huge
turnoff for them, as revealed by a 2023 study from Futura, a network for women
in fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Read this Term.
By
providing women with the tools and resources to make informed financial
decisions, the gender gap in investing can be narrowed, empowering more women
to take control of their financial futures.
The rise of
female investors is a testament to the breaking down of barriers and the
challenging of stereotypes in the world of finance. As more women recognize the
opportunities presented by investing and take charge of their financial
destinies, the gender gap in this field will continue to narrow.
We wish
this to all women on the occasion of International Women’s Day.