{"id":597036,"date":"2025-06-07T10:00:00","date_gmt":"2025-06-07T08:00:00","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=597036"},"modified":"2025-06-07T06:56:03","modified_gmt":"2025-06-07T04:56:03","slug":"warning-about-social-media-traders","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/internet\/597036-warning-about-social-media-traders.html","title":{"rendered":"Warning about social media traders"},"content":{"rendered":"\n<p>The vast majority of trading advice on TikTok from influencers is potentially misleading, posing serious risks to retail traders who rely on such guidance.<\/p>\n\n\n\n<p>This was revealed by BrokerChooser, which noted that financial influencers, also known as \u201cfin-fluencers\u201d, significantly influence retail traders\u2019 decisions.<\/p>\n\n\n\n<p>Notably, 33% of forex traders are said to have been influenced by finfluencers to make trading decisions, and 49% of consumers depend on finfluencer recommendations.<\/p>\n\n\n\n<p>New research from the forex broker experts at&nbsp;<a href=\"https:\/\/brokerchooser.com\/best-brokers\/best-forex-brokers\" target=\"_blank\" rel=\"noreferrer noopener\">BrokerChooser<\/a>&nbsp;has uncovered that up to 80% of forex advice given out on TikTok from \u2018influencers\u2019 could be potentially misleading.<\/p>\n\n\n\n<p>The experts analysed 100 of the best-performing TikTok videos across a range of forex topics to uncover the scale of misinformation.<\/p>\n\n\n\n<p>What they uncovered was alarming, from a major lack of disclaimers to a high volume of videos focused solely on flaunting wealth and lifestyle, with little to no trading context.<\/p>\n\n\n\n<p>The research revealed that only 6% of forex advice on TikTok encourages viewers to do their own research. Overall, the analysis revealed that a staggering 80% of forex advice on TikTok was potentially misleading.<\/p>\n\n\n\n<p>Only 6%, or 3 in 50 videos, encouraged viewers to do their own research. Interestingly, of the top-performing videos, 60% of content came from male fin-fluencers.<\/p>\n\n\n\n<p>Female fin-fluencers were behind 35% of top-performing videos, and 5% were from unspecified or AI-produced content.<\/p>\n\n\n\n<p>According to BrokerChooser, only one in seven videos, or 13%, analysed included relevant disclaimers, such as clarifying the risks involved in forex trading or stating that the content was not financial advice.<\/p>\n\n\n\n<p>This lack of transparency is particularly concerning, given that one in five videos was actively promoting or selling a product or service. This raises ethical concerns about the motivations behind the content being shared.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"923\" height=\"811\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/06\/Forex-trading-videos-on-TikTok-with-actual-information-according-to-BrokerChooser.jpg\" alt=\"\" class=\"wp-image-597046\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/06\/Forex-trading-videos-on-TikTok-with-actual-information-according-to-BrokerChooser.jpg 923w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/06\/Forex-trading-videos-on-TikTok-with-actual-information-according-to-BrokerChooser-455x400.jpg 455w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/06\/Forex-trading-videos-on-TikTok-with-actual-information-according-to-BrokerChooser-910x800.jpg 910w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/06\/Forex-trading-videos-on-TikTok-with-actual-information-according-to-BrokerChooser-768x675.jpg 768w\" sizes=\"(max-width: 923px) 100vw, 923px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">TikTok\u2019s forex advice puts viewers at risk<\/h2>\n\n\n\n<p>Disturbingly, the forex broker experts at BrokerChooser uncovered that half of the forex-related content on TikTok (50%) was fin-fluencers boasting about their money made or their lifestyle with no relevant or trading context.<\/p>\n\n\n\n<p>Only 9% of videos which included brags about money or lifestyle came with context as to how they achieved it.<\/p>\n\n\n\n<p>Additionally, less than a quarter (23%) of forex-related content on TikTok contained actual forex trading information. Instead, videos often focused on lifestyle imagery, vague motivational claims or promises of quick wealth.<\/p>\n\n\n\n<p>This was often done without disclosing risks or by creators without verifiable credentials, creating a misleading impression of forex trading as a guaranteed route to financial freedom rather than a complex, high-risk activity.<\/p>\n\n\n\n<p>\u201cThe 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,\u201d said BrokerChooser\u2019s content editor head, Edith Balazs.<\/p>\n\n\n\n<p>\u201cThe research uncovered that very few creators encourage their viewers to do their own research or provide any meaningful trading information.\u201d<\/p>\n\n\n\n<p>Instead, the platform seems 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.<\/p>\n\n\n\n<p>\u201cThis 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,\u201d Balazs said.<\/p>\n\n\n\n<p>Balazs explained that TikTok is not the place to start if you\u2019re serious about learning to trade. Forex education should not come from fin-fluencers trying to sell you a dream.<\/p>\n\n\n\n<p>Instead, investors should find reliable trading information from regulator-accredited sources, such as financial institutions, professional trading platforms, or certified training providers.<\/p>\n\n\n\n<p>\u201cAlways practice due diligence: question the source, verify credentials, and never take financial advice at face value,\u201d Balazs urged.<\/p>\n\n\n\n<p>\u201cCritical thinking, combined with research and regulated education, is the only safe way to approach financial markets.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>This article was first published by <a href=\"https:\/\/dailyinvestor.com\/investing\/88314\/investors-relying-on-social-media-face-serious-risks\/\" target=\"_blank\" rel=\"noreferrer noopener\">Daily Investor<\/a> and is reproduced with permission.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The vast majority of trading advice on TikTok from influencers is potentially misleading, posing serious risks to retail traders who rely on such guidance.<\/p>\n","protected":false},"author":341195,"featured_media":597041,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[18,80335],"tags":[100048,100051,96015,59100],"class_list":["post-597036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internet","category-investing","tag-brokerchooser","tag-edith-balazs","tag-finfluencer","tag-tiktok"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/597036"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341195"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=597036"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/597036\/revisions"}],"predecessor-version":[{"id":597047,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/597036\/revisions\/597047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/597041"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=597036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=597036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=597036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}