Women In Trading: Is Trading Still A Male Dominated Industry?

Watch this panel discussion to discover the challenges women face when entering the world of investing, explore prevailing industry stereotypes, and gain insights into the trading world.

Before we get into this, it is important to note that not all women are interested in entering the demanding field of trading and investing. However, the journey has proven to be quite challenging for those who are. Following the discussion, our financial influencers gave us a peek into their lives and the path that led them to trading, continued with the following questions. 

Who is the typical female investor?

Research conducted by XTB shows that women are naturally more cautious and need more information to make decisions, but they do it based on in-depth analyses. Data indicates that women need a sense of greater control and security over their finances whereas men make decisions faster, are less patient and trust their own opinion. 

According to Annika from Finpact: “There isn’t a typical female investor, however, there are specific traits and characteristics that most women naturally tend to follow. Women tend to be more risk averse men will take more risk towards their action steps or their trades whereas women will take less risks, do more research and take longer time to execute trading decisions”. 

What is the proportion of women among all investors in the UK?

According to data conducted by XTB in 2022, the share of women among new clients amounted to 16%. The UK is the second biggest country behind Romania, with the highest share of women accounting for 14% of total investors. Countries such as France, Germany and the Czech Republic account for less than 10% proving that globally there is still a huge gender gap. 

According to Caroline Rundell of Trading Angel Tik Tok account: “In most other areas, the gender gap between men and women is closing, but in the finance sector, the disparity in the UK  is the largest. She continued: “The reason for it has to do with the pay gap because although more women are getting into finance they're not going for the top roles and as you can imagine the difference between the administrative supportive roles and the top roles in finance is enormous.So although more women are entering finance it looks like they're not actually going for those top roles.”

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Do women trade better than men and are there still stereotypes in the field?

Emily from Mindfully Trading explained: “It's just about balance, we actually trade differently and we have different investing styles.Combining it can be more powerful than the sum. It's been proven that when you combine skill sets you can actually do better so I think working together is probably the strongest option.”

However, Emily also highlighted that old perceptions die hard and that she still receives comments on her videos such as: “I refuse to take financial advice from a woman”, “it's nice to see a woman dabbling in the stock market rather than in the kitchen, good job.”

When did women start trading?

By a vote of 24 to 5, the London Stock Exchange Council agreed to allow women members on the trading floor as of March 26, 1973. The choice came as a result of campaigns by legislators, potential members, and other financial institutions that pushed for women to have the same membership rights as males. In that year, Muriel Wood became the first of 14 women to be elected to membership, ushering in a new era for women's entrance to the City of London. The London Stock Exchange commemorated the 50th anniversary of women being allowed on the trading floor on Monday, March 27.

Although it is still a known fact that women are still underrepresented in some sectors of the financial industry compared to men, such as private equity and hedge fund management, there are many successful female traders and investors who have made important contributions to the sector. 

Motherhood and trading. Do women have to sacrifice a family to get to the top positions?

Many are unaware that women have been involved in finance since the beginning of banking and commerce, however, in the 20th century, their participation in trading started to rise. During World War II, when men were called into the military and women were required to replace their roles, women started to make substantial advancements in the field. This gave women in finance, including traders, new opportunities.

Emily from Mindfully Trading expressed:“I’ve had the option to just step away from Youtube which I did consider and just focus on trading and be a mum but I didn't really want to give that up because I’ve kind of created something and that's a baby as well so I've had to balance a lot. She continued by saying: “It is definitely doable though I think that a big fear among women could be that they think they've got to make a choice whether it's career or family and it doesn't really just apply to trading”. 

Research from the Office for National Statistics (ONS) shows that women tend to pick jobs closer to family over bigger salaries. Women are more likely to leave a job due to a longer commute whereas a man will travel longer for a higher pay, inflaming the gender gap which contributes to men doing the majority of high-paid jobs. 

Minister for Women and Equalities, Amber Rudd, said:“Women across the country struggle to find a balance between being a parent and their job. She further explained that: “These statistics show how women are likely sacrificing a larger paypacket, and career growth, because they are doing the bulk of childcare and unpaid work - like taking care of elderly relatives and their home.”

Emily explained: “Since having my child the past year I've taken a step back and taken a more swing trading approach which has been a lot better, it's easier for me to manage and it's less emotional”. 

Despite facing severe discrimination and restrictions in the 1960s and 1970s women started to enter the financial sector in greater numbers. 

Why do old perceptions die hard?

According to research conducted by the House of Commons Library in the UK, the sectors with the most women in employment are health and social work accounting for 21% of all jobs held by women as of September 2022.

Only 27% of senior executive positions in the financial services industry worldwide are held by women, according to 2020 research by the Institute of International Finance (IIF). They revealed that women make a staggering 50.2% of employees in the financial services sector in the US, but only 2.6% of CEO positions.

Annika highlighted:“The entire concept of Wall Street is a highly male-dominated business, and we need the culture to change for all these men to start understanding the benefits that women can bring to the table in order to make better trades. Together, we can accomplish more.”

When she was asked whether the financial markets are becoming more tailored towards females she explained that: “There are companies that are trying to really make a difference, take XTB they're hosting a women's webinar which is incredible so there are companies that really do care and are tailoring their services to involve more women, have more female spokespeople for their platforms and their marketing and I think that does help. At the same time, some industries are doing it to tick a diversity box rather than really making a change and change happens through marketing. Change happens through what you're seeing online, everyone is consuming things on Youtube, Netflix and if they start releasing more and more webinars and women trading examples women can get inspired,”

How can we influence a future generation of females in trading?

Emily explained: “There's so many tools out there to help us, there's so many free resources so that we can't say we don't know, it's not an excuse anymore we don't even need money to begin with either which can put a lot of people off from my experience. It's usually down to fear, lack of knowledge, lack of money and there's no need for any of that really to stop us from gaining to the world of trading and investing.”

To all the women considering entering the trading world. Here are a few last tips:

1. Educate yourself: Get to know trading, investing, and the financial markets. XTB offers over 30 hours of educational content with a wide range of ebooks, Youtube explanatory tutorials and daily market analysis. 
2. Join webinars: Is this the right path for you?
3. Participate in industry conferences: Actively participate in industry conferences, forums, and networking events, which can provide you with opportunities to connect with other professionals and build a strong support network.
4. Join a supportive and inclusive culture you feel comfortable in: Establish trading clubs or organisations specifically for females, providing a safe space for you to discuss and learn about trading, share ideas, and collaborate.
5. Advocate for equal access to financial resources, such as investment capital and funding, for female traders and entrepreneurs.

How to learn trading as a beginner?

As a beginner it is always best to open a demo account. If you are unaware of what it is, essentially, demo accounts let you practise trading with fake money. Once you open a demo account with XTB you can test your trading techniques without using real money and gain practical experience with our trading platform. You'll develop confidence and learn how the platform functions as a result.

XTB provides highly rated trading features, offering a range of educational resources that help new traders to learn about the market and can also assist experienced traders in improving the skills that they already have. These resources include market news, articles and in-depth ebooks. You can also access a range of advanced technical analysis tools as well as our in depth Youtube videos.

How to improve your financial literacy

People who want to improve their financial literacy or make wise financial decisions can obtain a lot of help from micro influencers in the industry. Compared to established financial institutions or professionals, they frequently offer a more relatable and approachable viewpoint on finances.

However, regardless of how large an influencer's following is, it's crucial to conduct your own research and practise your own due diligence before accepting any financial advice. 

Get to know the panel

Caroline Rundell: Trading Angel

As a self-taught retail trader Caroline Rundell enjoys mentoring aspiring traders through her TikTok channel “Trading Angel”. Despite being self-taught, she has received mentoring from institutional traders, and is now sharing the knowledge gained from both her own and others' experiences. 

Emily: Mindfully Trading

Emily from Mindfully Trading began trading in 2018. After enrolling into a trading course to broaden her knowledge and gain confidence to trade by herself she has now found her passion in forex trading and educates those looking for advice on how to get started. 

Annika Masrani: Finpact

Annika Masrani of the YouTube channel Finpact studied Accounting and Finance at the LSE and completed a degree at Cass Business School. Now the CEO and founder of Finpact Annika finds herself in a unique position where she shares her knowledge on all about careers, stock markets, crypto and more.

Final thoughts

It's important to note that efforts are being taken to broaden the representation of women in finance, and certain businesses and organisations have achieved success in this area. For the sector to truly reach gender equality, there is still a long way to go.

XTB strives to promote diversity and inclusivity, including gender equality, in the workplace. We recognise the value of having diverse perspectives and experiences, which can lead to better decision-making and overall success. Women often approach problem-solving and decision-making differently, leading to increased creativity within the company. Diverse teams can generate a broader range of solutions, fostering a culture of innovation.

We acknowledge that panel discussions such as the above are crucial for encouraging, empowering and involving women. By offering up-to-date ebooks, articles and market analysis XTB is committed to educating anyone joining the trading industry. 

If you would like to learn more about trading check make sure you sign up to get exclusive access to our Technical and Fundamental Analysis Guide.