35% of Canadian Retail Investors Have Taken Advice From a Finfluencer

Snapshot:
New research from the Ontario Securities Commission (OSC) highlights the growing impact of financial influencers—or “finfluencers”—on retail investors in Canada. The report, Social Media and Retail Investing: The Rise of Finfluencers, found that 35% of retail investors have made financial decisions based on social media advice. While many view finfluencer content as accessible and informative, 40% of these investors also believe the influencers they follow are trustworthy—despite acknowledging their likely self-interest.

Trust in finfluencers appears to come at a cost. Investors who act on their advice are seven times more likely to trust them, and 12 times more likely to fall victim to a social media scam. The OSC warns that this influence could harm investor well-being, particularly when the advice is poor or misleading.

An online simulation involving 1,465 participants showed how easily social media content swayed behavior: nearly 40% of those exposed to a finfluencer-style post bought the promoted asset, versus just 10% in the control group. Non-investors were especially susceptible.

While certain interventions were able to reduce the persuasiveness of these posts, none completely neutralized their impact. The findings underscore the need for better investor education and regulatory awareness around the financial influence of social media content.

Full Story: OSC