FINRA Panel: Social Media as an Investment Guidance Tool

Investment guidance is increasingly taking new forms, with younger investors turning to YouTube and other forms of social media for financial education, according to speakers at the Financial Industry Regulatory Authority’s 2026 Annual Conference. On a Tuesday panel, speakers highlighted the growing role of social media and “finfluencers”—social media influencers who give financial advice—in shaping retail investor behavior, particularly among younger demographics.

Data from the FINRA Foundation show that while financial professionals remain a dominant source of information, social media is an increasingly meaningful part of the information ecosystem. According to panelist Olivia Valdes, senior principal researcher at the FINRA Investor Education Foundation, FINRA research found that 75% of investors across age groups relied on brokerage or investment firms for information, but 29% reported using social media for investment decisions.

According to FINRA’s report, “Finfluencer Followers and Social Media Scrollers,” 60% of investors aged 18 to 34 used social media for investment ideas, and 61% said they frequently or sometimes made decisions based on finfluencer recommendations.

Panelists emphasized that understanding investor behaviors, including the sources of their information, is critical to investor protection.

Valdes said surveyed investors told FINRA that “social media broke down some of those [investment] concepts where there was jargon. So there are some aspects that we can learn … how to communicate better with these investors.”

Dangers for Finfluencer Followers

Valdes noted that investors who relied heavily on finfluencers tended to exhibit worse financial literacy, coupled with “overconfidence” in their investment knowledge. That combination could make them more vulnerable to misinformation and fraud.

“This sense of overconfidence can be dangerous,” Valdes said, particularly if it leads investors to overlook warning signs of fraud.

In a separate FINRA survey, only 40% of investors said they were confident in their ability to assess the accuracy of financial information they encountered.

At the same time, incentives behind finfluencer content are not always clear, raising concerns about undisclosed sponsorships or product promotion.

Sarah Green, FINRA’s vice president and chief of staff and the panel moderator, said that the Federal Trade Commission identified social media as the leading source of investment fraud in its fraud report released in April. Of the $2.1 billion lost by consumers through social media scams in 2025, $1.1 billion came in investor losses tied to fraudulent investment scams.

Panelists said younger investors often feel pressure to pursue higher-risk investments, sometimes driven by trends or viral content, even if they are uncomfortable doing so.

Firms Navigating Engagement, Compliance

Despite the risks, panelist Megan Powers, executive director and head of digital, communications and workplace compliance at Morgan Stanley, emphasized that social media can be a valuable engagement tool for firms, when used thoughtfully.

“The key is that it’s treated as a supplement to the fundamentals,” said Powers, noting that education, not promotion, should be the primary goal.

Large firms, including Morgan Stanley, are already active on social platforms, using official firm accounts to share educational content and reinforce branding. Some firms also maintain client-facing channels tailored to existing relationships.

However, these efforts come with strict governance. Firms have established review processes, posting guidelines and internal training programs to ensure content complies with regulatory standards and that employees understand risks such as scams and misinformation.

The fast pace of social media further complicates oversight, and Powers, explaining how quickly content can spread without proper controls, said, “A minute is light years.”

Panelists warned that if firms collaborate with finfluencers on social media, those finfluencers often lack experience operating within a regulated framework. Firms that build their own social media presence should place their regulatory knowledge at the forefront.

“Finfluencers aren’t risk-averse or used to the regulatory lens,” Powers said. “When it comes to compliance, if you’re planning on engaging with any finfluencer community, the first thought should not be marketing. It should be governance.”