05.12.26

Social Media as an Investment Guidance Tool: FINRA Panel

by: Valentina Baez

Social media is increasingly shaping investment behavior, especially among younger investors, as finfluencers and platforms like YouTube gain influence, according to speakers at the Financial Industry Regulatory Authority’s (FINRA) 2026 Annual Conference. While most investors still rely on brokerage firms, social media use is growing, with 29% using it for decisions and 60% of ages 18–34 seeking ideas. FINRA warns that overconfidence and low financial literacy among heavy users increase fraud risk, especially amid misleading or undisclosed sponsored content. Despite the risks, panelist Megan Powers, executive director and head of digital, communications and workplace compliance at Morgan Stanley, emphasized that social media can be a valuable engagement tool for firms, when used thoughtfully. “The key is that it’s treated as a supplement to the fundamentals,” said Powers, noting that education, not promotion, should be the primary goal.

Read the full article on planadviser