Women are taking the market by storm. Recent reports suggest that the number of female investors has risen by 50% in recent years! Furthermore, the rise of female investors has inspired a whole new generation of women to delve into the stock market and grow their wealth. Here, I take a look at the most popular platforms for female investors and how to choose the right trading platform for you.
[top_pitch]
What type of trading platforms are used by female investors?
New research by Finder.com has revealed that female investors tend to favour newer trading platforms. In fact, the survey found that women who invest are 47% more likely to use platforms that were founded after 2010.
Just 34% of investors who use platforms founded before 2010 are women. Whereas, platforms that were founded after 2010 have an equal share of male and female users. So, these newer trading platforms are closing the investing gender gap
Modern investment platforms that are favoured by women include Freetrade, eToro and Nutmeg. Platforms that are used by predominantly male investors include Hargreaves Lansdown, AJ Bell and Halifax – all of which were founded before 2010.
Are newer trading platforms better for female investors?
While newer platforms may be popular with women, Zoe Stabler from Frinder.com says that it’s wise to explore all options before making any decisions.
The research showed no difference in platform satisfaction between women who use new platforms and women who use those that were founded before 2010. In both cases, around 70% of female investors said that they were satisfied with their experience.
As a result, it suggests that newer platforms are not necessarily any better than older ones. Zoe says that new investors should take time to research all options that are available as older platforms may be just as good as those that were founded after 2010.
[middle_pitch]
What should female investors look for in a trading platform?
While new platforms may be appealing due to great advertising and accessible apps, older trading brokers may also have a lot to offer female investors. If you are currently looking for a new trading platform, here are three things you may want to look for.
1. Choice/variety
As a new investor, you may not yet know exactly what you want to invest in. For this reason, it is wise to choose a platform that offers a wide variety of investment options.
The Hargreaves Lansdown Fund and Share Account has an extensive range of investment options available and offers excellent educational resources that can help you to learn about the different investment types.
2. Low fees
To maximise your profits as a trader, it’s best to choose a platform with low fees. Trading platforms often charge a fee for using the platform, making trades, holding funds and even withdrawing money. Choosing a platform with low overhead fees will minimise your expenses and leave you with more money to invest in your portfolio.
The Free Trade General Investment Account has a £0 platform fee as well as a £0 share dealing charge! Also, investors can start using the platform with as little as £2. As a result, this is a great option for those looking for a cheap platform.
3. Ease of use
The last thing that you want as an investor is to get caught out by a confusing platform. Ease of use is an incredibly important aspect that all traders should look for when finding a broker. A simple design and straightforward experience make it easy to place trades and understand how things work. The AJ Bell Youinvest Dealing Account is one of the simplest investment platforms out there.
It is important to know that all trading platforms come with some level of risk. When choosing a platform, take your time and conduct thorough research before handing over any of your money.
