BCSC Shows How Social Media Platforms Like YouTube, Reddit, and TikTok Influence Canadian Self-Directed Investors

Canadian investors are increasingly relying on social media to make self-directed investment decisions, using apps and online platforms while drawing information from peers, online communities, and financial content creators.

Research from the BC Securities Commission (BCSC) indicates that 43% of Canadians hold self-directed investments, with nearly 40% of these investors using platforms like YouTube, Reddit, and TikTok for financial information. Younger Canadians are most active, with those under 45 significantly more likely to consult online discussion boards and social media for investment opportunities.

Social media usage for financial information is growing across the country, with surveys showing similar patterns among Canadians beyond the BCSC study.

Social Media Platforms Used by Canadians

Social media is becoming a key source of financial information. While most investors consult advisors or institutions and many rely on friends and family, 36% turn to online sources, including social media. YouTube leads in popularity, while TikTok is particularly used by investors aged 18–24. Self-directed investors are nearly three times more likely than others to search online for opportunities.

Trust and Credibility of Online Content

Credibility depends on context and presentation. Posts with explanations, multiple sources, or active engagement are seen as more trustworthy. Heavily sponsored content, slang, or memes reduce reliability.

Impact on Investment Behavior

This influence shows in actions. About 10% of all investors purchased an investment first seen on social media in the past year. Among self-directed investors, nearly one-third did so, with young men aged 18–34 the most active.

How to Verify Investment Information

Investors should carefully verify information before committing funds. Reviewing company filings, financial statements, and regulatory disclosures, while cross-checking multiple sources, helps reduce the risk of fraud. Recent incidents in Canada, such as Interactive Brokers Canada impersonation scams and RCMP crypto seizures, highlight the need for caution and proper verification.