August 8, 2025 Breaking News, Latest News, and Videos

Should You Take Financial Advice From a Finfluencer?

Social media has made it relatively easy for anyone to present themselves as what they are not. With platforms like TikTok, Instagram, and Twitter, there is a growing wave of creators dishing out tips that might not be practicable in the real world. The delicacy of finance as a niche makes it an even bigger problem to trust such advice, and we are beginning to see more people lose money due to this pandemic. Should you take financial advice from a finfluencer online? Here’s an article on what experts advise on this matter. 

What Is a Finfluencer?

The term finfluencer was coined from the two words financial and influencer, and these individuals create content and provide information or financial advice for their online audience. They can also influence people’s financial decision-making through recommendations, promotions, or personal experiences. The influencer community has seen massive growth since the pandemic, and presently, there are around 50 million of them across all social media platforms, including TikTok, Instagram, and YouTube. 

Ideally, investors, forex traders, and finance-savvy individuals would prefer advice from a legal and knowledgeable financial adviser or forex broker. Still, with the growing online community, the younger generations find advice from finfluencers easily accessible and are often more inclined to go with it. The barrier to entering this field is relatively low, and anyone with a camera and aesthetic setup could decide to become a social media influencer today. This is why people question whether financial advice from such individuals should be trusted. 

Advice or Information? What Are Finfluencers Useful For?

Source: Unsplash

One of the first things to remember with influencers is that they are not professional financiers or qualified experts. Therefore, their words should be viewed discerningly, not accepted as solid advice at face value. The recent crypto wave is a practical lesson in this context, as we saw influencers, public figures, and celebrities like Kim Kardashian, Elon Musk, Matt Damon, and many more endorse crypto tokens and NFTs. Most of these celebrities took the backlash when people lost loads of their investments to this wave. 

Another critical point is that most of these finfluencers sometimes get paid to promote or endorse these products or services, regardless of whether or not they are profitable to the users and audience. The line between what is profitable to them and their audience gets blurred. Predominantly, the audiences suffer the most from it. Although this isn’t to say that all influencers work this way, it’s important to emphasize that viewers need to be more wary of what they take as helpful information and financial advice.

What To Look Out for Before Trusting a Finfluencer

Source: Unsplash

Background

This includes checking if the finfluencer has a background in finance or is educated enough in the field to be an expert adviser. As much as the space is highly unregulated, some finfluencers have a background in finance and know their onions. Do a background check, and be sure these individuals have decent experience in finance. 

Regulation

Regulation is an issue of concern in the space, and since many people are posing to be experts, one can never be too careful. This is where the Securities and Exchange Commission (SEC) comes in. The SEC is constantly looking for fraudulent social media influencers that tag themselves as traders or experts in finance. There are other finance bodies across the globe, like the FCA, SEBI, AFS, and more, creating laws and regulations against unlicensed finance advisers. Be on the lookout for news and updates from the bodies to know which red flags to evade in dealing with financial influencers. 

Unrealistic Offerings

This is one thing we see many people fall for on social media. Unrealistic offerings that are too good to be true, and content like how to double or triple your money in X number of days. If the offerings seem too good to be true, it will likely be a scam. Choose safer investments endorsed by credible financial institutions to avoid falling for cheap scams. Lastly, avoid influencers that request you send money to them via social media. Before making any investment commitments, do your independent research outside of those given by any influencer. 

Social media is an excellent source of information. If properly utilized, it could set you some steps further in your journey towards success. However, it is paramount to separate the good from the harmful; the same goes for dealing with finfluencers. Watch out for red flags, like FOMO content, free offers, get-rich-quick schemes, and any dubious advice. The internet could be a place to build your financial knowledge and wealth, but it could quickly be the opposite.

in News
<>Related Posts

Boil Water Notice Issued for Parts of Malibu After Construction Disruption

August 8, 2025

August 8, 2025

 Caltrans Bridge Work Triggers Precautionary Advisory Residents in sections of Malibu are being urged to boil tap water before use...

Big Blue Bus Returns to Palisades This Weekend

August 8, 2025

August 8, 2025

The Route 9 reinstatement is part of a larger set of service changes taking effect After months of limited operations,...

Providence Relocates Palisades Clinics to Santa Monica

August 8, 2025

August 8, 2025

The relocated clinics are now accepting both existing and new patients Providence has permanently relocated its primary care and pediatric...

Film Review: The Naked Gun

August 7, 2025

August 7, 2025

FILM REVIEWTHE NAKED GUNRated PG-1385 MinutesReleased August 1st   The Naked Gun plays to high expectations due to its historic legacy,...

Children’s Hospital to Expand Pediatric Orthopedic Services in Santa Monica with $10M Gift

August 7, 2025

August 7, 2025

The funding will support expanded clinic space, new equipment, and the recruitment of additional orthopedic specialists in Santa Monica Children’s...

‘Dad Bod’ Contest Comes to Venice Restaurant This Weekend

August 7, 2025

August 7, 2025

The competition will unfold over three themed rounds: a beachwear walk, a tongue-in-cheek “talent show,” and a final flex-off judged...

City Preps for Return of SaMoHi, Pali High Students by Boosting Safety

August 7, 2025

August 7, 2025

Efforts to ensure student safety include reactivating school crossing guards, completing pedestrian safety upgrades, and promoting free public transit As...

Hot Dog on a Stick and Santa Monica Brew Works Team Up for Santa Monica’s Dog Days of Summer

August 7, 2025

August 7, 2025

Dog-Friendly Event in Santa Monica Supports Local Rescue Group  Santa Monica’s four-legged residents will get their day in the sun...

Santa Monica’s ICARUS AI Launches Global Grant Initiative, Empowering 5,000 Lives Through Education

August 6, 2025

August 6, 2025

SANTA MONICA, CA – ICARUS AI https://icarus.education/ a local Artificial Intelligence and education technology company, headquartered right here in Santa...

Santa Monica’s Chez Jay Celebrates 66 Years with Retro Bash by the Beach

August 6, 2025

August 6, 2025

Landmark Restaurant Celebrates With Classic Cars, Live Music, Celebrity Lore One of Los Angeles County’s most storied restaurants will mark...

Swiss Firm Partners with California Startup to Aid Wildfire Recovery With AI Robots

August 6, 2025

August 6, 2025

The robotic microfactories are designed to fabricate structural wall panels on-site with high precision, aiming to speed up the construction...

Film Review: Weapons

August 6, 2025

August 6, 2025

By Dolores Quintana You might be asking yourself what the film Weapons is about. Not to worry, writer and director...

Trial Date Set for Alleged ‘Ketamine Queen’ in Matthew Perry’s Death

August 5, 2025

August 5, 2025

Woman Accused in Matthew Perry’s Overdose to Face Jury The woman accused of supplying the fatal dose of ketamine that...

Santa Monica to Enter Mediation Over Ebony Beach Club Land Seizure

August 5, 2025

August 5, 2025

The decision follows a year-long investigation into White’s efforts to open the Ebony Beach Club—a nonprofit intended to provide a...

(Video) Palisades Rec Center Completes Construction of First Responder-Themed Playground

August 5, 2025

August 5, 2025

The new playground–which replaces a near-40-year-old one–was made with funds largely generated by the FireAid Benefit Concert. Palisades Rec Center...