Most Forex Advice on TikTok May Be Misleading, New Study Finds

A new study from forex broker experts at BrokerChooser shows that up to 80% of forex trading advice shared on TikTok may not be reliable. These videos are mostly made by financial influencers, also called “finfluencers.” The results raise serious concerns about how TikTok is affecting people’s financial choices, especially those who are new to trading.

Many TikTok Videos Lack Clear, Honest Information

The study, released on May 16, 2025, looked at 100 TikTok videos that talked about forex trading. The researchers found that most of these videos didn’t give clear or honest information. Many left out important details or context. This is worrying because more and more people are turning to TikTok to learn about money and investing.

TikTok is full of content that promises easy money through forex trading. But in reality, forex (foreign exchange) trading is very risky and complicated. People watching these videos might not understand the real dangers involved.

Only a Few Videos Encourage Doing Research

Out of the 100 videos studied, only 6% (that’s about 3 out of every 50) told viewers to do their own research before making a trade. This is a big problem because many people trust these influencers. BrokerChooser’s data shows that 33% of forex traders follow the advice of finfluencers, and nearly half (49%) of all viewers take their suggestions seriously.

When influencers give misleading advice and people act on it without understanding the risks, it can lead to big financial losses.

Most Videos Do Not Include Warnings or Disclaimers

Another issue is transparency. Only 13% of the videos had disclaimers saying that the content wasn’t official financial advice or that it was promoting a product. About 20% of the videos actually tried to sell something or promote a service, but often didn’t say so clearly. Without this kind of warning, viewers don’t know the real reason behind the advice and might trust it too much.

Flashy Lifestyles Are Often Used to Attract Attention

Many finfluencers on TikTok show off expensive cars, houses, or fancy vacations. The study found that 50% of the forex videos included these kinds of images. But only 9% of them explained how the person actually made their money through trading. This gives the wrong idea that forex trading is an easy way to get rich quickly, which is not true.

Very Little Real Trading Education Is Shared

Only 23% of the videos contained any real information about forex trading. Most were full of vague encouragements, unrealistic promises, or just flashy images. Many of the people making these videos didn’t have any proper background or training in finance. Few warned about the serious risks involved in forex trading.

In fact, the truth is quite different. A recent report from the U.S. SEC (Securities and Exchange Commission) mentioned by BrokerChooser showed that about 70% of people who trade forex lose money each quarter. Also, two out of every three forex traders lose money overall.

Who Are the Finfluencers?

Looking at who is making these popular videos, 60% were created by men, 35% by women, and 5% by accounts that were either not clearly human or possibly AI-generated. The fact that AI might be involved adds more concern about how real or trustworthy the content is.

Experts Warn Against Trusting TikTok for Trading Advice

Edith Balazs, Head of Content at BrokerChooser, said the study shows that most forex content on TikTok is potentially harmful or misleading. She warned that many influencers are just showing off their wealth without explaining how they earned it, which could make viewers believe things that are not true and lead them to risky decisions.

She advised people to learn trading from trusted, regulated sources like financial schools, professional trading platforms, or licensed financial advisors.

Balazs said, “TikTok is not the place to start if you want to learn how to trade. You need critical thinking, proper research, and real education from trusted sources if you want to understand the financial markets safely.”

A Growing Concern for Young Viewers

This study comes at a time when social media is playing a bigger role in shaping how people, especially the younger generation, think about money. With so many turning to TikTok for advice, the lack of rules and fact-checking is a serious problem.

BrokerChooser’s research shows that there needs to be more responsibility among those creating financial content, and more awareness from viewers to question what they see.

Final Message for Traders

For people interested in forex trading, the main message is clear: TikTok may be fun and inspiring, but it is not a reliable source for financial education. New traders should check the background of anyone giving advice, understand the risks, and look for sources that are clear, honest, and focused on safety.

In a market where most people lose money, doing your own research and getting proper training is the best way to protect yourself.