Can social trading help women narrow the gender wealth gap?

Part of the gender wealth gap is obviously attributable to women’s lower wages. But reducing this gap by focusing on equal pay alone would take a very long time (in 2018, the World Economic Forum’s estimate1 was that more than 100 years would be necessary to close the wage gap in most of the Western world) and is, unfortunately, not in a woman’s own control. Through harnessing the power of investing, however, women are in a much better position to close the wealth gap for themselves. Women, statistically, make less money than men, but earn more when they invest that money.2

The problem is, not many women are investing. A recent study3 found that only 23% of women take charge of their own long-term financial decisions.

Social trading: a simpler way to start investing

So, how can women who want to invest, but never have before, get started? Putting your money in the hands of a financial advisor is, of course, an option. However, you might want to consider social trading, and more specifically copy trading, which is online investing by copying what other successful investors are doing. On the one hand, it is empowering, because it allows you full control over your own portfolio management, rather than giving that control over to someone else; at the same time, you can lean on the expertise of experienced investors and a supportive trading community. On eToro, using the CopyTraderTM feature to replicate another investor’s portfolio is free of any additional fees.

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Meet three of eToro’s top investors — and copy their portfolios

These three women are not only successful investors themselves, but also strive to help users on the eToro platform to invest.

“Being an investor means taking active responsibility for my future.”
Sharon Connolly (@sharonconnolly) had no previous experience with financial investments before joining eToro. “Just start” is her advice to other women who want to begin investing. “Start and slowly learn as you go.” Sharon joined eToro in 2013 and has been consistently investing in companies with which she is already familiar as a consumer. “I have an iPhone and an Apple watch, I listen to music on Spotify, and watch movies on Netflix. If you invest in what you know about, it’s easier to spot and read news articles,” Sharon explains.

 

“Being an investor means I am in control of my destiny.”
Lena Birse (@onegirl) has other traders copying her even though she has no formal investment training. “I am completely self-taught,” Lena confirms, telling women: “If you’re used to managing a budget at home, you can just as easily manage a portfolio.” She adds that the entry point on eToro is low, allowing first-time investors to get started with a relatively small amount of money. “In the past, if you wanted a portfolio of stocks like mine, you would need an account worth millions.”

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“I want people to see that investing is the key to a successful future.”
Even with a Master’s degree in Economics, Tat’yana Agureyeva (@lorderonia) well understands why women might hesitate when considering investing. “Any person has a fear of losing their capital,” she affirms, “but those who do not take risks, cannot profit. The only way to combat the fear is to start investing. Social trading helps people who are not versed in the market to gradually delve into the features of trading and get help from successful traders. When trading with other brokers, you are alone. With eToro, we are a whole team of traders.”

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Sources:

  1. The Global Gender Gap Report 2018, World Economic Forum. http://www3.weforum.org/docs/WEF_GGGR_2018.pdf
  2. https://www.wbs.ac.uk/news/are-women-better-investors-than-men/
  3. https://www.ubs.com/global/en/media/display-page-ndp//en-20190306-study-reveals-multi-generational-problem.html

 

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