Over 80% of TikTok forex advice misleading – new study finds

A new study by forex broker experts at BrokerChooser has revealed that up to 80% of forex trading advice shared on TikTok by financial influencers, or “fin-fluencers”, is potentially misleading, raising concerns about the platform’s role in shaping retail traders’ financial decisions.

The research, published today, May 16, 2025, analysed 100 TikTok videos focused on forex trading, uncovering a troubling lack of transparency, context, and legitimate trading information in the majority of content. As TikTok continues to grow as a hub for financial advice, the findings highlight the risks for retail traders who may be swayed by flashy promises of wealth without understanding the complexities and high risks of forex trading.

The study found that only 6% of the analysed videos (three out of every 50) encouraged viewers to conduct their own research before making trading decisions. This lack of emphasis on due diligence is particularly alarming given the influence finfluencers wield. According to BrokerChooser, 33% of forex traders have been influenced by finfluencers when making trading decisions, and 49% of consumers rely on their recommendations. With such a significant impact, the prevalence of misleading content could lead to unrealistic expectations and financial losses for inexperienced traders.

Transparency was another major issue identified in the research. Only 13% of the videos included disclaimers clarifying that the content was not financial advice or was promoting a product or service. Meanwhile, one in five videos actively promoted or sold a product or service, often without disclosing this intent. This lack of clarity can obscure the motivations behind the advice, leaving viewers vulnerable to biased or self-serving recommendations.

TikTok forex finfluencers prioritise glamour over substance

The study also highlighted a troubling trend of finfluencers showcasing lavish lifestyles and wealth without providing context about how these were achieved.

Half of the forex-related content on TikTok (50%) featured creators boasting about their money or lifestyle, but only 9% of these videos (fewer than one in 10) offered any explanation of how the wealth was generated through trading. This focus on glamour over substance risks creating a false impression that forex trading is a quick path to riches, rather than a complex and high-risk endeavour.

When it comes to substantive content, the findings were equally concerning. Less than a quarter (23%) of the analysed TikTok videos contained actual forex trading information. Instead, much of the content relied on vague motivational claims, promises of quick wealth, or lifestyle imagery.

Many videos were created by individuals without verifiable credentials, and few disclosed the inherent risks of forex trading. This portrayal of trading as a guaranteed route to financial freedom contrasts sharply with the reality: a recent SEC report cited by BrokerChooser noted that about 70% of retail forex day traders lose money each quarter, and two out of three forex customers experience overall losses.

The demographics of the content creators also provided insight into the TikTok forex landscape. Of the top-performing videos, 60% were produced by male finfluencers, 35% by female finfluencers, and 5% by unspecified or AI-generated accounts. The predominance of male voices in the space may reflect broader trends in financial content creation, but the presence of AI-generated content raises additional concerns about authenticity and accountability.

Edith Balazs, Content Editor Head at BrokerChooser, emphasised the dangers of relying on TikTok for forex education. “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,” Balazs said. “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.”

Balazs advised traders to seek reliable education from regulator-accredited sources, such as financial institutions, professional trading platforms, or certified training providers.

“TikTok is not the place to start if you are serious about learning to trade,” she cautioned. “Critical thinking, combined with research and regulated education, is the only safe way to approach financial markets.”

The study’s findings come at a time when social media platforms like TikTok are increasingly shaping financial behaviours, particularly among younger audiences. With millions of users turning to finfluencers for guidance, the lack of regulation and oversight in this space poses significant challenges. BrokerChooser’s research underscores the need for greater accountability among content creators and heightened awareness among consumers about the risks of acting on unverified advice.

For retail traders, the takeaway is clear: while TikTok may offer entertainment and inspiration, it is no substitute for rigorous research and professional education. Aspiring traders are urged to verify the credentials of advice-givers, question the motives behind promotional content, and prioritise sources that emphasise risk disclosure and transparent trading strategies.

In a market where losses are commonplace, due diligence remains the most critical tool for navigating the volatile world of forex trading.