Gen Z investors rely on social media the most when making investment decisions, with financial influencers having the greatest impact on their choices, according to a recent study by the Stock Exchange of Thailand (SET).
The study found financial influencers play a crucial role in members of Gen Z (those born between 1997 and 2012) deciding to start investing. Their top investment choices are cryptocurrency at 44%, stocks 32% and funds 20%.
Meanwhile, 73% of investment fraud victims were deceived through social media platforms.
"The use of social media among investors has surged, growing from 26% of the global population in 2014 to 60% in 2024. This uptick has led to the emergence of financial and investment influencers who provide easily accessible financial knowledge online," noted the study.
These people create investment-related content in various formats, including investment news, recommendations, financial planning and market analysis.
Their content is widely shared across multiple social media platforms.
The most commonly recommended investment products by influencers are stocks, index funds, exchange-traded funds, real estate and cryptocurrency.
Some 65% of Gen Z investors use investment apps, while only 15% follow traditional investment methods.
A survey found Gen Z relies on social media and public information sources for 48.8% of their investment decisions, while only 22% seek advice from analysts and financial advisors.
In contrast, Baby Boomers and Gen X still prefer traditional research reports from securities firms.
With 73% of investment fraud victims approached through online and social media channels, this represents a leading gateway for widespread financial damage.
To combat misinformation and promote financial literacy, the SET has launched various educational programmes, including investor training efforts such as Investor Classroom, Happy Money and INVESTORY.
In addition, the bourse supports credible influencers to enhance the quality of financial content available to the public, emphasising the importance of critical thinking when consuming online financial information.
"If something sounds too good to be true, it probably is -- especially in finance and investing," the SET stated.