New research from online broker comparison website, BrokerChooser, has confirmed investors are increasingly leaning on the “potentially misleading” advice of online ‘finfluencers’ to make investment decisions.

On average 33 per cent of retail foreign exchange (forex) traders said they had been influenced by finfluencers in their trading decisions, and 49 per cent accepted finfluencer recommendations

However, research conducted by BrokerChooser from over 100 videos posted to online social media platform, TikTok, found that 80 per cent of the advice given out by finfluencers may be “potentially misleading”.

The research found there was a “major lack of disclaimers”, a “high volume of videos focused solely on flaunting wealth and lifestyle” and minimal “trading context”.

Only six per cent of the videos analysed urged viewers to do their own research, only 13 per cent included relevant disclaimers (such as identifying the risks involved in forex trading or confirming the content was not financial advice), 20 per cent of videos were actually promoting or selling a product or service under the guise of providing advice, and 50 per cent of videos involved finfluencers “boasting about their money made or their lifestyle with no relevant or trading context”.

The research also highlighted the growing concern of the rise of artificial intelligence (AI)-generated content and the lack of transparency in determining the original producer of content consumed by online users, in which 60 per cent of forex trading-related content came from male finfluencers, 35 per cent from female finfluencers and five per cent from an unspecified source or was generated by AI.

“The findings of our study are deeply concerning as they shine a light on the overwhelming majority of forex-related content on TikTok as potentially misleading or harmful,” Edith Balazs, Content Editor Head at BrokerChooser, said.

“The research uncovered that very few creators encourage their viewers to do their own research or provide any meaningful trading information.

“Instead, it seems that the platform is saturated with individuals flaunting their wealth and lavish lifestyle without offering any transparency or context, which could leave viewers vulnerable to false expectations and financial risk.

“This is particularly concerning as a recent SEC report suggested that around 70% of retail forex day traders lost money each quarter and two out of three forex customers lose money overall.

“If you’re serious about learning to trade, TikTok is not the place to start. Reliable forex education should come from regulator accredited sources, such as financial institutions, professional trading platforms, or certified training providers, and not from fin-fluencers trying to sell you a dream.

“Always practice due diligence: question the source, verify credentials, and never take financial advice at face value. Critical thinking, combined with research and regulated education, is the only safe way to approach financial markets.”