The Ontario Securities Commission published a research report on social media and retail investing that finds financial influencers have considerable influence on Canadian retail investors’ decision-making and that reliance on finfluencer advice is associated with greater vulnerability to social media scams. An OSC survey of 655 Canadian retail investors found 35% reported making a financial decision based on finfluencer advice, and around 40% said the finfluencers they follow are trustworthy despite generally viewing finfluencers as motivated by self-interest. Respondents who acted on finfluencer advice were seven times more likely to trust finfluencers they follow and 12 times more likely to have been scammed on social media. The report also describes an online experiment with 1,465 Canadian social media users in a trading simulation where nearly 40% of participants exposed to finance-related posts bought the promoted assets versus about 10% of those not exposed, with non-investors more susceptible than existing market participants; several interventions reduced, but did not eliminate, the persuasiveness of such content.
Ontario Securities Commission 2025-04-22
Ontario Securities Commission research finds finfluencers materially sway retail investing decisions and correlate with higher scam exposure
The Ontario Securities Commission report highlights financial influencers' significant impact on Canadian retail investors, linking reliance on their advice to increased vulnerability to social media scams. A survey found 35% of investors made decisions based on influencer advice, making them more likely to trust influencers and fall victim to scams. An online experiment showed exposure to finance-related posts led nearly 40% of participants to buy promoted assets, with non-investors being more susceptible.