IG urges people to ‘check before they invest’ as research shows almost one in five investors have lost money following advice on social media

Investing and trading platform IG is urging investors to ‘check before they invest’ after new research found that almost one in five (18%) UK investors say they have lost money after making an investment decision influenced by advice, tips or content seen online.
The research, which surveyed 2,000 UK adults who invest, found that two in five (41%) have acted on investment advice, tips or inspiration seen on social media. Of those who acted on social media investment content, 45% said they subsequently lost money (equivalent to 18% of the full sample). The average estimated loss among those reporting a loss was £802.
While social media and financial influencers are playing an increasingly important role in promoting financial awareness and making investing more accessible, the research highlights the need to check the source and understand the risks before acting on investment content. IG is encouraging investors to check credentials, do their own research and consult the FCA’s Warning List for any warnings about the influencer or firm.
Three in five exposed to common pressure tactics online
According to the data, social media is among the top five most common sources of financial information for investors. Almost two-thirds (64%) see financial content on social media at least once a week, including one in five (20%) who see it every day.
Alongside this growing exposure, investors are also regularly encountering language that can create hype or an unwarranted sense of urgency around investment opportunities – 62% have seen at least one of the common phrases tested by IG. Among those who had encountered this type of content, the most commonly seen claims included ‘banks don’t want you to know this’ (49%), ‘get in before it’s too late’ (47%) and ‘everyone is buying this’ (41%).
Positive comments and ‘gains-bombing’ make investors trust influencers
The research found that almost two in five (38%) UK investors trust investment advice from financial influencers on social media to some degree. For some investors, it can take little more than a screenshot or a large following to establish trust. Among those who trust financial influencers, almost a third (31%) cite positive comments from other users, while 25% point to a large following. Nearly a quarter (24%) say screenshots showing a creator’s own investment gains contribute to their trust, while one in five (21%) are influenced by creators who appear wealthy or successful.
More substantive signals also matter, with 34% saying they trust creators who are qualified financial experts attached to a reputable finance brand, while 32% cite verified credentials, and 42% trust those who explain the risks clearly.
IG urges investors to check before they invest
IG is urging investors to pause before acting on financial content they see online and check who is providing it, what evidence supports the claim, what they are actually investing in and what they could lose.
Chris Beauchamp, Chief Market Analyst at IG, said: “There have been people giving out stock ‘tips’ for as long as investing has been around, but the rise of social media means that a whole new generation is being exposed to the risks of taking unsolicited advice. It’s easy to find this content online. In fact, it’s probably impossible to escape it.
“There are also some brilliant financial creators doing a great job of making investing more accessible and helping people understand their finances, and we shouldn’t lose sight of the positive role they can play. But our research shows this content isn’t simply being seen – it is influencing investment decisions, and for too many people that can come at a financial cost.
“The answer isn’t to tell people to ignore financial content online. It’s to encourage people to question what they see, check the source and understand the risks before they invest. That’s why we’re encouraging everyone to check before they invest.”