Independent women lead the latest wave of share traders

While investment has traditionally been a male dominated world, new research by share dealing expert Alliance Trust shows a significant trend of female investors emerging in the early ‘noughties’. Alliance Trust surveyed almost 1,000 online investors and found that while men dominated the pioneering wave of online investors in the late 1990s, women have surged to start trading online over the last five years.

While private investors may tend to wait until markets rise to invest, Alliance Trust’s research shows that the stockmarket doldrums of the early ‘noughties’ proved the most popular period for new recruits to online investment, and women led this second wave of savvy, self-directed money-makers. Over one third (36%) of today’s online traders made their first online trade three to five years ago, while only just over a quarter (27%) started share dealing online six to ten years ago.

Three out of four (75%) female investors questioned made their first online share purchase within the last five years, compared to just under two thirds (61%) of men, suggesting that the freedom to trade any time, any place and on their own terms is proving particularly attractive to 21st Century Trader women. With the latest Ofcom figures2 showing that women aged 25-34 spend over 20% more time online than their male counterparts, the trend of more women trading online looks set to gather pace.

Why women trade

Women also have clear reasons for why they are investing, with almost three in five (59%) stating they want to build their personal/family wealth. 32% of women list investing for their retirement followed by saving for a rainy day (31%) as second- and third-most mentioned reasons for investing.

But while over half (51%) of female investors say they make their investment decision by themselves without help from anyone, 33% say they ask their partner or spouse for advice. Only 14% of their male counterparts state they would ask their partner for help with their investment decisions.

Claudia Philips, Managing Director of Investment Dealing at Alliance Trust, comments: “It’s great to see that women are standing out in this surge in new online traders, taking control of their investments and actively managing their financial future. Online investment dealing offers you the chance to trade wherever you are and whenever you want and this flexible, non-threatening environment seems to suit the lifestyles of modern, independent women.

“It’s also fascinating to reflect that the difficult period after the stockmarket crash actually proved the main recruiting ground for today’s online traders, eclipsing the supposed army of day-traders of the late nineties. Increased reliance on the internet in our daily lives is no doubt the main reason for this surge in online investment, and as a result share dealing websites now need to ensure they cater for the needs of everyday investors.”

Alliance Trust currently offers online share dealers commission-free purchases on UK listed shares and a reduced £5 commission for their online share sales. The offer will apply to all online UK equity trades between 9 July and the 28 September 2007 across Alliance Trust’s dealing, ISA, PEP and Self Select SIPP accounts. To find out more go to: alliancetrust.co.uk/films