Young Investors Turn to Instagram for Stock Tips

A surprising 21% of young people, those between 18 and 34, now use Instagram to get stock tips and market forecasts.

This detail came from a recent Opinium survey. In comparison, no one over 55 uses Instagram for this purpose.
 

Different Platforms, Different Age Groups

 
Instagram isn’t the only platform where younger investors are seeking advice. 16% of them also check Facebook, and 14% go to Reddit.

TikTok is used by 8%. For those over 55, none use Instagram, Reddit, or TikTok. But, 1% do look at Facebook.

Financial company websites still play a significant role, with 32% of the youngest group, 35% aged 35-54, and 34% over 55 seeking information there.

Emma Wall from Hargreaves Lansdown commented:

“Financial websites are popular across all age groups and regions of the UK.”
 

Gender Preferences in Investment

 
There are differences in how men and women approach investing. Women often ask friends and family for advice.

Men and those over 35 on the other hand, like to trust their judgement. Financial websites are popular among 38% of men and 28% of women.

Instagram sees more women (10%) than men (6%) seeking investment advice.
 

More To Think About

 
The Online Safety Bill is moving through parliament, as safety online lately has shown its flaws.

There’s also a new plan to stop cold calls for financial products, aiming to protect people from scams.

Crypto trading is also in focus. Plans to regulate trading of certain crypto assets are being discussed, with some views suggesting it’s more like gambling.

The Financial Conduct Authority (FCA) is looking closely at ‘finfluencers’. These are people who have many followers and can influence their financial decisions.

The FCA wants to ensure promotions are legal and not misleading.

No matter where you get your tips, Emma Wall stressed the importance of making choices that fit personal needs. She said:

“It’s essential to make sure investment ideas are right for you.”

And a reminder for everyone: Always approach advice from unregulated sources, like social media, with caution.
 

Trustworthy Sources To Use

 
Traditional Financial Media:

Trusted publications such as the Financial Times and the Wall Street Journal remain staples for many investors. Their analysis, based on years of experience and a commitment to journalistic standards, provides a foundation for understanding market trends.

Regulated Financial Advisors:

Seeking counsel from licensed professionals is a proven strategy. In the UK, the Chartered Institute for Securities & Investment (CISI) and the Personal Finance Society (PFS) list accredited individuals, ensuring you’re speaking with someone who adheres to strict industry standards.

Governmental Bodies:

The Financial Conduct Authority (FCA) not only regulates the industry but also offers investor education and warnings about potential scams. Their website can be an invaluable resource for those aiming to keep their investments safe.

Financial Company Websites:

As mentioned earlier, companies like Hargreaves Lansdown and Vanguard provide research and analysis, while prioritising user security and regulatory compliance.

Industry Associations:

The Investment Association (IA) in the UK represents fund managers and offers resources and reports that can assist investors in understanding the broader industry perspectives.

Peer Reviews and Community Discussions:

While social media platforms come with their concerns as far as reliability goes, there are forums such as the Motley Fool UK Community where discussions about investments are monitored for quality and accuracy.
 
Emma Wall’s words ring true across all these platforms: aligning advice with personal financial goals is paramount.

But armed with guidance from trusted sources, UK investors can navigate the complexities of the market with greater confidence and clarity.

As always, when engaging with any source, be it online or offline, maintaining a vigilant and questioning mindset can be the best weapon against misinformation.