ABSTRACT

This study investigates the experiences of women traders in the foreign exchange (Forex) markets in Cameroon, addressing a significant knowledge gap regarding their access, participation, and opportunities within this predominantly male dominated financial sector. Globally, women remain largely underrepresented in Forex trading, with even lower participation rates observed in Africa and Cameroon. The research aimed to profile women traders, identify their trading types and strategies, examine their motivations and the benefits they derive, and explore the challenges and barriers they face.

Employing a qualitative, exploratory research design with supplementary quantitative elements, the study collected primary data from a purposive and snowball sample of 30 women Forex traders in Yaounde and Buea, Cameroon, through questionnaires and interviews. Data analysis utilized thematic and cross-case analysis for qualitative insights, complemented by frequency distributions and descriptive counts for quantitative data.

Key findings reveal that women traders in Cameroon are predominantly young, highly educated  and often single, with a significant proportion being students or self-employed. Their primary motivations for engaging in Forex  trading are mainly financial independence, income generation, and the flexibility it offers. Perceived benefits include enhanced financial stability, personal empowerment, improved decision-making skills, and valuable connections within trading communities. However, these women face substantial challenges, notably limited internet and technology access, pervasive negative views and stereotypes about women traders, difficulties balancing trading with family duties, and a significant lack of access to formal financial support. Despite these obstacles, the majority of respondents perceive Forex trading as a viable source of income and report a positive impact on their financial situation, often learning through online tutorials and supportive trading communities.

In conclusion, while women in Cameroon demonstrate resilience and a strong drive for economic empowerment through Forex trading, systemic barriers related to infrastructure, societal norms, and financial access continue to limit their full participation and potential. The study’s findings highlights  the critical need for targeted interventions, including accessible training, improved technological infrastructure, and initiatives to combat gender bias, to foster a more inclusive and equitable Forex market in Cameroon.

INTRODUCTION

1.1 Background to the Study.

Throughout the years, trade has been at the forefront of economic activities, this has been going on for many centuries and accounts for a large part of the Gross Domestic Product  of the economies of many nations, ranging from developed, developing and underdeveloped nations ( UN World Development Reports, 2009 ). International trade which is made possible by globalization and international cooperation takes on different forms for these nations with Foreign Exchange trading being a very big facilitator of these trading activities  mainly in thee form of digital currencies. According to Chen(2009, P. 19) in his book The essentials of Foreign Exchange Trading, the foreign exchange market  is “the market where exchange rates are determined” highlighting the role played in setting the value of countries currencies globally. Brent Donnelly who is a seasoned inter-bank foreign exchange trader in his book The Art of Currency Trading of 2019 explains the strategies used in the Foreign Exchange market and tactics but does not highlight any gender aspect or the particular participation of women in this field.  Historically, foreign exchange has been predominantly male dominated with women facing barriers to entry and other restrictions with a global percentage of 87.6% of traders being male and 12.4% being women ( Social History Portal, Gender Money: Historical Approaches, 2024 ). According to a study carried out by AfricaPortal Organization women in Tanzania are very absent in the financial market, many of these women do not have enough exposure to finance or a big source of income, therefore many lack financial literacy to the point where many do not as much as own  bank  accounts.

 Developing countries have been showing continues interest in foreign exchange trading but is carried out mainly by private bodies and very few industries or financial institutions. With an increase in the number of traders in the financial field, there has been a significant increase in the number of women participating in foreign exchange trading with women becoming successful traders and proven track records of having good financial outcomes. With all this,  women still account for just 25%  of foreign exchange traders in Africa’s financial markets and 45% of these women in Africa in 2021 do FX as hobbyist traders especially within the age group of 18 to 24 years of age (Broker Notes,2021). The age demographic which consist of predominantly young women in their early twenties highlights the fact that African women have been lagging behind in the FX market and just recently have they been able to participate in finance though not effectively which can be attributed to certain factors ranging from institutional, cultural and economic factors. Despite the advancement of gender equality and better inclusion of women in certain sectors,  the Foreign exchange market continues to have unbalance in access, participation and opportunities for  many women.  While there is very limited data on the participation of women in the FX markets in Cameroon, existing data by the world bank suggest that women are under represented in the financial sector of Cameroons economy with just 49.3% of women owning bank accounts in financial institutions (world bank,2021). These figure goes to highlight the fact that more than half of the population of Cameroon women do not have access nor do they participate effectively in the finance sector.

 Women make up a significant portion of the workforce in finance but are often underrepresented mainly in trading roles , facing challenges in expanding their careers and accessing leadership positions in this field even though they posses exposure and expertise which they have demonstrated. Women’s participation and roles in foreign exchange trading has become a significant area of concern in the industry due to the slow rate of progress in gender equality that keeps women back in the industry while affecting their productivity and advancement. Recent Studies have shown  that women’s under-representation in foreign exchange trading can have very far reaching implications on the individual trader and the market as a whole by reducing productivity and limiting efficiency, as the World Bank and World Trade Organization(WTO)  highlights that trade policies can exacerbate gender inequality, with women facing higher tariffs than men. Therefore addressing these issues faced by women is a matter of granting basic human rights because women’s rights are human rights and is also important in improving inclusivity, overall efficiency and economic well-being in a collaborative trading environment.

Since the activities in the foreign exchange market has been surveyed every three years since 1986, the foreign exchange market FX has experienced very significant growth in recent years with an estimated daily trading volume of over 7.5 trillion Dollars which is up 14% from the 6.6 trillion three years earlier, with women accounting for a very little percentage in the daily output (Bank for International Settlements, 2019) and since research has shown that women’s participation in financial markets can lead to improved economic outcomes, increased financial inclusion, and more diversified investment decisions( World Bank, 2018). This was clearly seen in the work by  Barber and Odean(2001) found that women traders tend to outperform men in terms of investment returns, due to their more conservative and less impulsive investment strategies. Another study by Jianakoplos and Bernasek (1998) found that women are more risk averse than men which can lead to better

 investment decisions.

Despite the continues interest in the participation of women in foreign exchange trading , there very limited research on the experiences, behaviors, opportunities and performance of women traders in the forex market. This knowledge gap is significant for the understanding of the dynamics of women’s participation in the foreign exchange trading can inform strategies to promote financial inclusion, improve trading outcomes and effectively enhance the overall efficiency of the forex market( Ozorio and Foschi, 2019). 

Furthermore, the foreign exchange market is characterized by very high levels of uncertainty, volatility, and risk, which is considered to be particularly challenging for women traders because  of the believe of women being fragile and risk averse, so women traders may face additional barriers such as lack of access to financial education and training, limited financial resources, and social and cultural norms that discourage women from participating in financial markets( World Bank, 2018).

Women in Cameroon are important to international trade, particularly in informal cross border trading (ICBT), which accounts for a significant portion of regional commerce. ICBT involves small scale trading across borders with countries like Nigeria, Chad, and the Central African Republic, often conducted by women. According to a 2017 study in the International Journal of Economics and Finance (Titeca & Kimanuka, 2017), women dominate this sector, with 72 out of 129 traders at a Cameroon-Nigeria border and 121 out of 143 at Cameroon-Chad-Nigeria border being women. These traders deal in agricultural goods like maize, beans and textile, and manufactured products. Cameroon’s trade policies, shaped by its membership in the Central African Economic and Monetary Community (CEMAC)  and the African Continental Free Trade Area (AfCFTA), aim to liberalize trade but often fail to address the specific needs of women in the informal sector. The government offers no targeted incentives for women owned businesses, through initiatives like the British High commission’s Empowering Women Entrepreneurs in Cameroon program (2024) provide training and support to bridge this gap. Women mitigate challenges through trade associations and social networks, demonstrating resilience in navigating systemic constraints.

Due to the skills and economic realities of women in Cameroons international trade sector, it creates a partway to their eventual involvement in foreign exchange trading. Forex trading is gaining traction in Cameroon due to increased internet access, mobile technology, and financial literacy campaigns, while specific data on women in Cameroon’s forex trading is limited, their experience in ICBT positions them uniquely to enter this field. Women in ICBT regularly navigate  currency exchange, dealing with the CFA franc (pegged to the euro) and foreign currencies like the Nigerian naira or U.S. dollar. A Nkafu Policy Institute report (2022) notes that Cameroon’s trade with Nigeria often invoiced in dollars, exposes traders to exchange rate volatility, which requires them to adapt to fluctuating currency values. This practical knowledge aligns with the skills needed for forex trading.

Due to the increasing recognition of the importance of promoting women’s participation in financial markets, including foreign exchange markets( IMF, 2018), governments, financial institutions, and other organizations have launched initiatives aimed at promoting financial inclusion, improving financial literacy, and supporting women’s entrepreneurship.

By understanding the root causes of women’s limited participation, access and opportunities in foreign exchange trading, examining the the extent of these limitations and bringing out strategies to address these inequality would be a crucial step to creating better trading environments. The current number of 15 million traders worldwide with just 1.8 million women and a percentage of about 12% averagely. There should a valuable number of women who are able to freely access training and participation in foreign exchange trading so as to enhance equality which will greatly  contribute to the general output of the finance industry significantly and boost diversity.

1.2 Statement of the Research Problem.

Despite the growth of the finance sector, very few women are represented in this sector, women comprise a very small number of traders globally and even smaller in foreign exchange markets and still face limitations in accessing and participating in the FX market. This limits their opportunities significantly, In such a world the face of Foreign exchange trading is male. According to The sixth global study in the Rich Thinking series, it is widely known that the broader female population tends to be underexposed to exchange-listed equities (Barbara Stewart, 2016) . Women in FX are constrained by gender specific obstacles such as, stereotypes and bias , lack of representation in financial spaces, limited access to education and training , limited access to capital, risk management, unconscious bias, technological barriers. Most finance trading programs target men due to stereotypes on women’s ability to take risk. Very little has been done in the area of women in foreign exchange trading in Cameroon, Therefore this study aims to fill the knowledge gap in the area of foreign exchange in relation to women in this field by investigating the peculiarities  that  women in foreign exchange trading in Cameroon experience focusing on the unequal access, limited participation and shortage of opportunities for  women in this sector by exploring the experiences of women traders in foreign exchange.

1.3 Research Questions.

1.3.1 Main Question:

what are the experiences of women traders in the foreign exchange markets in Cameroon?

1.3.2 Specific Questions:

The specific research questions are;

1. What is the profile of women traders involved in foreign exchange trading?
2. What type of foreign exchange trading are women traders involved in?
3. What are the motivation of women traders in foreign exchange trading?
4. What are the benefits of foreign exchange trading for women traders in the foreign exchange market?
5. What are the challenges and barriers faced by women traders in foreign exchange trading?

1.4 Objective of the Study

1.4.1 Main Objective:

The main objective of the study is to investigate the experiences of women traders in the foreign exchange markets in Cameroon.

1.4.2 Specific Objectives:

The specific objectives of the study are;

1. To investigate the profile of women traders involved in foreign exchange trading.
2. To identify the types of foreign exchange trading women traders are involved in.
3. To examine the motivation of women traders in foreign exchange trading
4. To examine the benefits of foreign exchange trading for women traders in the foreign exchange market.
5. To explore the challenges and barriers faced by women traders in foreign exchange trading.

1.5 Limitations of the Study.

Sample Size and Generalizability: The relatively small sample size of 30 participants, though purposively selected from Yaounde and Buea, limits the generalizability of the findings beyond the specific population studied. While efforts were made to include participants from both major urban centers, the insights may not fully represent the diverse experiences of all women traders across Cameroon or in rural areas where internet and electricity access may be more inconsistent.

Sampling Method: The reliance on purposive and snowball sampling, while effective for reaching a niche population, introduces potential selection bias. Participants were likely referred by others within existing trading networks, which may have excluded women who are less connected or trade independently, potentially skewing the findings towards more integrated traders.

Self-Reported Data: The data collected was primarily self-reported through questionnaires, which can be subject to response bias, social desirability bias, or recall inaccuracies. While open-ended questions were used to gather richer qualitative data, the interpretation of personal experiences and challenges relies on the participants’ subjective accounts