Trading gap narrows as more women gain confidence

Nearly half of South African households (42.1%) are headed by women, according to Stats SA’s 2022 census.

In these households, women are often both primary caregivers and breadwinners. They wield significant influence in purchasing decisions and are pivotal in passing down knowledge on how to handle finances to future generations.

Despite this role, studies show they often lean towards saving rather than investing, particularly when lacking confidence and resources for long-term investing.

Standard Bank's data underscores this trend, showing that only 32% of its Online Share Trading customer base are women. It also shows that many women open their first trading account with Standard Bank after the age of 40, while most men first opened their accounts before turning 40. 

However, this picture is changing as institutions like Standard Bank develop tools and platforms to help women learn and develop their confidence.

“Looking at more recent data, it is encouraging that the average age of our first-time Online Share Trading account holders is getting younger. Female youth are becoming more confident in investing,” says Nivedna Maharaj, Standard Bank’s Global Markets head of Retail Investments

She points out that female representation is even better when looking at Standard Bank’s currency trading platform Shyft, where 38% of accounts are held by women.

“As more women’s disposable income increases, the trading gap is narrowing too. More women are finding the confidence to invest in the stock market. While in the past, many expressed self-doubt, today’s women are increasingly knowledgeable and consider investing an essential part of building wealth,” she says.

Maharaj attributes this increase to improved access to information and believes highlighting successful women in finance will inspire more female participation.

In line with this belief, Standard Bank launched the Invest In Her series in 2024 to showcase successful female traders and investors, offering role models and a supportive community. For Women’s Month, the series held its first in-person event with stock market analyst Moxima Gama, bringing together women for connection and empowerment.

“It is a big mission of ours to bring more women into this space because women will stretch each rand of their returns much further. Women tend to prioritise others' basic needs, making their participation in trading potentially more beneficial for society,” says Maharaj.

Standard Bank has developed online share trading platforms that make it easy for more women to get started:

• Standard Bank’s AutoShare Invest, accessible through the Banking App, gives investors simple access to local markets.
  
  
• Investors looking for international exposure can access global investment markets through Shyft and leverage educational content through its blog. Shyft is available as an independent mobile app or can be accessed through the Standard Bank Banking App.

But before accessing these platforms, Maharaj says it is crucial that investors set clear, SMART goals. These are “Specific, Measurable, Achievable, Relevant and Time-bound” objectives for each investment, such as saving for a house or retirement. Once the goal is clear, they can then execute on their investment strategy using an online trading platform that aligns with those goals. 

Seasoned traders can access more than 250 JSE-listed shares and Exchange Traded Funds futures contracts, contract for difference, warrants and forex investments through Online Share Trading or Webtrader. 

“These initiatives reflect our broader commitment to dismantling barriers and creating inclusive trading opportunities for women,” says Maharaj.

These Standard Bank insights highlight the need to boost women’s involvement in trading through tailored platforms for various investor levels. Though women are currently underrepresented in trading, Maharaj is encouraged by their increasing interest and willingness to engage.

This article was sponsored by Standard Bank.