The Rise of Female Forex Traders

The concept of gender is forex and financial market trading isn’t commonly discussed, despite the relative lack of diversity that exists in niches such as currency trading.

However, this has been referenced in a comprehensive 2018 study, which considered the representation of women at all levels of the global financial system and the relative success of female traders across the board.

We’ll explore this in further detail below, while asking whether women are likely to become increasingly dominant in the sector in the years to come.

How Many Female Traders are There?

According to the data garnered by the Warwick Business School, women made up less than 2% of all financial institutions across the board as recently as 2018.

Of course, this issue was particularly prominent in developing economies and regions such as South Africa, despite the increased presence and successful of local female traders such as Nelisiwe Masango and Danielle Lester, the former of which launched the successful ‘Bear Run Investments’ back in September 2013.

However, it’s interesting to note that women are more likely to choose forex trading than any other financial discipline in the global market, with day trading and the use of contracts-for-difference (CFDs) the two most popular investment vehicles amongst respondents.

However, perhaps the most interesting finding was that the current selection of female traders outperform men by approximately 1.8%, despite trading less and confining much of their activity to the volatile currency market.

As a result of this, the report suggested that narrowing the gender gap further would only enhance economic and investment growth, while also fostering far greater stability in the global banking system and empowering developing regions such as South Africa.

The Relative Strengths of Female Traders and How to Get Started

But what made women traders more accessible than their male counterparts? In simple terms, females showcased a tendency to minimise risk when trading forex, which is arguably ideal when you consider the volatile nature of the space.

Similarly, they were more likely than men to admit when they required more knowledge or information to proceed, with this considered to be crucial to continued development and long-term trading success.

The report also suggested that female traders boasted less of an ego than men, making them better equipped to deal with losses and learn directly from these going forward. Remember, an estimated 80% of global forex traders lose money over time, so being able to process and understand the impact of poorly judged trades can prove crucial to your long-term success.

Of course, the really good news is that female traders are being increasingly empowered by the rise of online forex broker platforms, which offer instant access to the market and an array of analytical tools. Once again, this is bringing parity to developing markets such as SA, which continues to experience considerable gaps in terms of banking and investment accessibility.

Similarly, licensed brokerage sites enable users to access a demo account for between three and six months, allowing female traders in such regions to hone their theoretical trading strategies and deploy these in a practical market setting.