Social media has changed just about everything—from how we communicate to how we consume information. Now, it’s transforming how people invest.

A recent research brief from the FINRA Investor Education Foundation highlights a growing trend: more investors—especially younger ones—are turning to social media and “finfluencers” for investment ideas.

 

A New Generation of Investors

According to the study, nearly 29% of investors now use social media to inform their investment decisions, and that number jumps to 60% among those aged 18–34.

Platforms like YouTube, Reddit, and Instagram have become major sources of financial information—with YouTube leading the way.

 

The Confidence Problem

One of the most concerning findings in the report is what researchers call a “knowledge-confidence gap.”

In simple terms: social media-driven investors tend to know less but believe they know more.

 

Increased Risk of Fraud

The study found that social media users are more likely to be targeted by scams and significantly more likely to lose money when they are targeted.

 

More Research… But Not Better Outcomes

Social media investors tend to use more information sources and conduct more research, yet still experience worse outcomes due to unreliable information.

 

Investing as Entertainment

Many investors now view investing as entertainment or a social activity rather than a long-term strategy.

 

What This Means for Investors

Access to more information does not automatically lead to better decisions. A sound financial plan should be based on goals, timeline, risk tolerance, and professional guidance.

 

Final Thoughts

Social media has made investing more accessible than ever—but with that comes increased risk. The challenge today isn’t finding information—it’s knowing what to trust.

 

Want to learn more? Call us at 256-417-4870 or 407-220-1040.

 

Mike Mickels is the President and Chief Compliance Officer of CochranMickels Retirement Specialists, LLC, and an avid sporting clay competitor. Our firm provides personalized planning and investment services to individuals approaching and in retirement. Disclaimer: This content is intended solely for informational purposes. CochranMickels Retirement Specialists, LLC and its representatives are only authorized to offer advisory services where properly licensed or exempt from licensure. Investing carries risks, including potential loss of principal capital. Our firm does not endorse external links, nor is it responsible for third-party content.