Navigating Financial Advice in the Age of Social Media

These creators provide a wide range of content, from budgeting and investing strategies to tax planning and credit-building advice, often delivered in concise, engaging formats designed to capture attention quickly.

However, recent research from the Ontario Securities Commission (OSC) in collaboration with The Decision Lab (TDL) reveals a darker side to this trend. While some finfluencers genuinely aim to educate, others may spread misinformation, promote high-risk strategies, or disguise paid promotions as neutral advice. As the study shows, this influence can directly shape how people trade, invest, and manage their money.

Here’s what you need to know to stay informed and protect your finances.

According to the OSC, finfluencers can offer relatable narratives and accessible alternatives to traditional financial advisors. Their personal experiences often resonate with those who may find conventional financial institutions complex or impersonal. Additionally, the short-form nature of social media content can make financial education appear less daunting.

However, the democratization of financial advice carries inherent risks.

Lack of Credentials
Not all influencers hold formal financial credentials, and not all advice should be considered reliable. While personal experience is valuable, it is no substitute for the professional standards and regulatory oversight required of licensed advisors in Canada. This expertise is particularly vital during volatile markets, where informed, nuanced guidance can be crucial to managing risk effectively.

Sponsored Content Without Transparency
Transparency about financial incentives is a regulatory expectation under Canadian securities law. Social media posts from finfluencers recommending specific stocks, financial products, or platforms without clear disclosure of sponsorship or compensation raise concerns about objectivity. Some influencers may even prioritize engagement metrics (followers) over the best interest of their audience.

High-Pressure Sales Tactics
Be wary of urgent calls to action such as “limited-time offers” or “exclusive sign-ups,” which are common in scams and pressure tactics. Exercise particular caution with advice that promises quick wealth, unusually high returns with minimal risk, or overnight financial freedom claims. This is all the more crucial when markets are seeing increased volatility — that’s when rapid price swings and uncertain economic conditions can amplify risk.

According to the Ontario Securities Commission1 the prevalence of investment fraud in Canada In 2024 alone, Canadians reported losses exceeding $310 million to investment fraud, with over 4,000 cases documented by the Canadian Anti-Fraud Centre.

Social media plays a notable role in this landscape: 46% of Canadians report encountering investment opportunities through these platforms. While not all such opportunities are fraudulent, social media can be a channel through which scams and misleading financial advice are spread, underscoring the importance of exercising vigilance when navigating financial advice online.

Before acting on financial advice from social media influencers, consider these steps:

Consult Reputable and Authoritative Sources
For investors who would like to rely on rigorous research and professional guidance, it remains critical to obtain advice from individuals or firms with established credibility, access to robust analytical resources, and verifiable performance histories. Anyone can comment on market trends or interest rate movements on social media, but seasoned investors recognize the importance of evaluating the source before incorporating such views into their decision-making. Reputable sources such as Qtrade’s analyst recommendations powered by Morningstar and educational apps and tools, such as TMX Money, can provide supplemental learning.

Engage Licensed Financial Professionals
Certified Financial Planners (CFPs), registered investment advisors, and portfolio managers are subject to regulatory oversight and ethical standards, while still enabling personalized advice aligned with your financial goals and risk tolerance.

Use Established, Regulated Platforms
Though experienced investors may be less susceptible to misinformation, the increasing prevalence of financial content created by everyday social media users heightens the risk that both novice and casual investors encounter incomplete or inaccurate information. Critical evaluation of financial advice and healthy skepticism toward unsubstantiated claims are essential to prudent portfolio management. Online brokerages like Qtrade are known for regulatory compliance, transparent fees, and robust research tools with a goal of providing a safe environment for managing investments. You can also consult government websites and provincial regulators for more impartial ,and up-to-date resources.

1] Canadians losing millions to investment scams: CSA, CAFC and RCMP urge vigilance and reporting, https://www.securities-administrators.ca/news/canadians-losing-millions-to-investment-scams-csa-cafc-and-rcmp-urge-vigilance-and-reporting/