ARLINGTON, Va.--(BUSINESS WIRE)--E*TRADE from Morgan Stanley today announced results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors and traders. In recognition of Women’s History Month, the study looked at female trading trends:
- Confidence climbs. Over half of female investors (51%) said they feel confident that they are making the right decisions for their portfolios—up 6 percentage points from Q1 2021.
- Engagement is high. Over two in five (41%) said they have spent more time dedicated to their portfolios. And about a third said they are trading equities (31%) and derivatives (28%) more.
- Mobile access is key. Two in three (67%) females said investing apps have had a positive effect on the way they handle their investments, up 9 percentage points from Q1 2021. Half said they use their trading app at least once a week or more, up 6 percentage points from last year.
- Yet many seek professional guidance as well. While 27% said they were more likely to rely on a mobile app to trade, about the same amount (29%) said they were more likely to seek out professional guidance.
“While historically many tended to associate trading the markets with men, the reality is that today there’s a whole new generation of female investors and traders who are tackling the market on their own terms,” said Mary Ryan, Executive Director of Trading at E*TRADE from Morgan Stanley. “The switch has been flipped on the narrative around trading being a male-dominated practice, and as an industry we must lean into this trend. Delivering intuitive, seamless, and useful tools is key.”
Ms. Ryan offered additional insights to female investors as they continue their trading journeys:
- Test and learn. A great way to kick the tires on new trading ideas without risk is to utilize paper trading, which allows traders to simulate trading without committing actual dollars. Whether you are new to investing and want to get more familiar with simple equity trades or are an experienced trader looking to try out more complex options strategies, paper trading allows you to test and monitor a portfolio without risking capital.
- Seek out a robust mobile experience. Nearly three in four investors (74%) note that it’s important to them that their broker’s mobile app has robust capabilities that match the web experience. Access to tools that allow you to seamlessly trade on-the-go is key when it comes to executing on a well-planned out strategy and keeping up with an ever-changing market.
- Leverage multiple account types. Women engaged with the market don’t necessarily have to go it alone. Investors with more complex needs may keep a long-term investment portfolio with a financial advisor, while dedicating a satellite portfolio to active trading.
About the Survey
This wave of the survey was conducted from January 3 to January 11 of 2022 among an online US sample of 901 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. The panel is broken into thirds of active (trade more than once a week), swing (trade less than once a week but more than once a month), and passive (trade less than once a month). The panel is 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands. The female data set comprises 359 investors.
About E*TRADE from Morgan Stanley and Important Notices
E*TRADE from Morgan Stanley provides financial services to retail customers. Securities products and services offered by E*TRADE Securities LLC, Member SIPC. Investment advisory services offered by E*TRADE Capital Management, LLC, a Registered Investment Adviser. Commodity futures and options on futures products and services offered by E*TRADE Futures LLC, Member NFA. Banking products and services are offered by Morgan Stanley Private Bank, National Association, Member FDIC. All are separate but affiliated subsidiaries of Morgan Stanley. More information is available at www.etrade.com.
The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results.
E*TRADE from Morgan Stanley, E*TRADE, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE from Morgan Stanley. ETFC-G
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© 2022 E*TRADE from Morgan Stanley. All rights reserved.
E*TRADE engages Dynata to program, field, and tabulate the study. Dynata provides digital research data and has locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information, please go to www.dynata.com.
Referenced Data
How confident are you that you are making the right decisions for your portfolio? |
||
|
Women |
|
|
Q1’21 |
Q1’22 |
Top 2 Box |
45% |
51% |
Extremely confident |
12% |
15% |
Very confident |
33% |
36% |
Somewhat confident |
44% |
40% |
Only a little confident |
10% |
8% |
Not confident at all |
1% |
1% |
The time I devote to my portfolio has ________ within the last three months of the pandemic. |
|
|
Women |
|
Q1’22 |
Top 2 Box |
41% |
Greatly increased |
9% |
Somewhat increased |
32% |
Stayed the same |
51% |
Somewhat decreased |
6% |
Greatly decreased |
2% |
Within the last three months of the pandemic, would you say you are trading equities... |
|
|
Women |
|
Q1’22 |
Top 2 Box |
31% |
Much more frequently |
6% |
Somewhat more frequently |
25% |
About the same |
56% |
Somewhat less frequently |
8% |
Much less frequently |
5% |
Within the last three months of the pandemic, would you say you are trading derivatives, (i.e., options and futures)... |
|
|
Women |
|
Q1’22 |
Top 2 Box |
28% |
Much more frequently |
7% |
Somewhat more frequently |
21% |
About the same |
55% |
Somewhat less frequently |
9% |
Much less frequently |
8% |
To what extent do you agree or disagree with the following statement? ** Investing/trading apps have positively affected the way I handle my investments. ** |
||
|
Women |
|
|
Q1’21 |
Q1’22 |
Top 2 Box |
58% |
67% |
Strongly agree |
21% |
24% |
Somewhat agree |
37% |
43% |
Somewhat disagree |
23% |
16% |
Strongly disagree |
19% |
17% |
Approximately how often do you use an investing and trading app on your smart phone? |
||
|
Women |
|
|
Q1’21 |
Q1’22 |
Top 3 Box |
44% |
50% |
At least once per day |
11% |
13% |
2-3 times each week |
20% |
15% |
About once per week |
13% |
22% |
2-3 times each month |
12% |
10% |
About once per month |
5% |
5% |
Less than once per month |
11% |
7% |
I do not have/use an investing/trading app |
28% |
28% |
Within the last three months of the pandemic, when it comes to managing your accounts, have you found yourself... (Top 1) |
|
|
Women |
|
Q1’22 |
More likely to seek out financial advice from an investment professional |
29% |
More likely to rely on a mobile app to trade |
27% |
None |
24% |
More likely to use a sophisticated software like a dedicated trading platform |
13% |
More likely to use an automated investment solution like a robo advisor |
6% |
Other |
1% |
To what extent do you agree or disagree with the following statement? **It is important to me that my brokerage's mobile app has robust capabilities that rival my brokerage's website experience.** |
|
|
Total |
|
Q1’22 |
Agree (Top 2 Box) |
74% |
Strongly agree |
33% |
Somewhat agree |
41% |
Somewhat disagree |
13% |
Strongly agree |
13% |
