Scroll through TikTok in Europe and you'll likely encounter a young creator promising that defence stocks "make millionaires 95% of the time," or an AI-generated persona urging you to buy a particular cryptocurrency. These short, punchy clips are part of a booming genre: financial advice delivered by so-called finfluencers. But how much of this guidance is actually sound?
A new analysis by BrokerListings.com, a broker comparison site, examined 150 finance-related TikTok videos, each with at least 100,000 views. The findings are sobering: more than 70% of the creators showed no clear background in financial services or relevant qualifications. Over 60% of the videos failed to adequately explain the potential risks or downsides of the products they discussed.
Regulators are taking notice. Ulf Linke, a consumer protection expert at Germany's financial regulator BaFin, told The Cube, Euronews' fact-checking team, that the authority sees a "clear trend" toward investment tips on social media, particularly among younger people. A 2024 BaFin survey found that more than half of Millennial and Gen Z investors considered social media a reliable source of financial information, while 60% saw it as a good alternative to professional financial advice.
Regulatory response across Europe
The European Parliament has backed calls for minimum standards for finfluencers, citing risks such as hidden advertising, misleading claims, scams, and AI-generated financial content. MEPs noted that social media has become a "primary" source of financial information for many young people.
The European Securities and Markets Authority (ESMA) issued guidance earlier this year, warning that rules on investment recommendations can apply to financial content posted on social media. Under these rules, someone recommending an investment may need to clarify who they are, separate facts from opinions, and disclose any financial benefits they might receive. Even publicly expressing an opinion on whether a share or cryptocurrency will rise or fall can, in some circumstances, constitute an investment recommendation. "Disclaimers such as 'This is not investment advice' will not protect you in these cases," ESMA states.
Why short-form video is risky
The format itself is part of the problem. Short clips on TikTok and Instagram don't lend themselves to the nuanced, balanced explanations that financial products require, says James Barra, head of content and research at BrokerListings. A video promoting a side hustle or get-rich-quick scheme is more engaging than a longer explanation weighing benefits and risks.
Moreover, the advice reaches people with vastly different levels of financial knowledge. An investment that might be a small part of an experienced investor's portfolio could be far riskier for a young person putting a large share of their savings into it. "And that sort of nuance… you don't necessarily have room for that in these short-form videos on TikTok," Barra told The Cube.
Interestingly, the most concerning content doesn't always come from the biggest finfluencers. Larger influencers and commercial partnerships have attracted more scrutiny from regulators and platforms, while smaller, organic creators can reach substantial audiences with less oversight.
TikTok says its Community Guidelines on regulated goods, services, and commercial activities apply to this type of content. The platform says it takes enforcement action, including removing content, when it violates those guidelines. TikTok also prohibits financial scams and reports that 99% of videos it removed for violating its fraud and scams policies in the first quarter of 2026 were taken down proactively before users reported them.
Not all bad
Despite the risks, not all financial content on social media is unreliable. BrokerListings found creators sharing useful information on budgeting, managing debt, building emergency savings, and long-term investing. For many young people, this content fills a gap left by formal education. "You don't learn about this at school, you don't learn about it at university," Barra said. "A lot of people don't learn about it from their parents."
There are also established financial education channels that take a more measured approach. Germany's Finanzfluss, presented by former investment banking analyst Thomas Kehl, has built a large audience around financial education, covering topics like ETFs, investing basics, saving, and retirement planning. In a recent TikTok, the channel discusses the growth of actively managed ETFs in the US and Europe, explaining the product and market developments rather than directing viewers toward a particular stock.
As regulators across Europe, from BaFin in Berlin to ESMA in Paris, grapple with the rise of finfluencers, the message is clear: approach social media financial advice with caution. Look for creators with verifiable qualifications, be wary of promises of high returns, and always seek out the risks before you invest. The allure of quick wealth is strong, but the cost of a bad tip can be far higher than a lost follower.
