DayTrading.com Publishes New Study Showing 70% Of Viral Finance TikToks Are Misleading

LONDON, Sept. 29, 2025 /PRNewswire/ -- DayTrading.com, a popular information hub for retail investors, has published a fresh report that puts viral finance videos on TikTok under the microscope.

This comes as Gen Z, in particular, is turning to social media for their financial education over traditional media outlets that often operate with tighter compliance.

The "Finance TikTok Report Card" evaluated the most-watched finance and investing videos for September 2025, which collectively received around 256,000 views. And it found that as many as 70% were misleading.

The researchers turned to popular hashtags like #FinTok and #FinanceTok to draw up a list of videos that had high view counts, clear financial claims, and covered a range of investment themes.

They then graded them across four areas: Accuracy, Risk Disclosure, Oversimplification, and Educational Value. These scores fed into an overall grade, ranging from 'A' to 'F'.

The report paints a worrying picture: Oversimplification sells in place of context, there's often a lack of suitable risk disclosures, TikTokers are enticed by the content, and genuine educators are few and far between.

"This isn't just about TikTok. It's about how a generation learns to handle money and invest in an environment where the loudest voice is rewarded, not the most accurate one," said Paul Holmes, the report's lead author.

Key Findings

70% of the finance videos evaluated failed to achieve an overall grade of 'B' or higher, with just 10% earning an 'A'.

20% scored an 'F' for their use of risk disclosures, with only 10% achieving an 'A'. This is striking given regulatory requirements surrounding risk warnings.

60% earned a 'D' or an 'F' when it came to the degree to which topics were oversimplified. This means they didn't provide enough context for beginners to properly understand a concept.

40% of the TikToks analyzed scored a 'C' and a further 30% earned a 'D' for their accuracy, raising alarms about viewers acting on incorrect information.

The TikToks that did score well, i.e., those with an 'A' or 'B' overall, tended to cover long-term investing basics like compounding or provide insights on salaries in Financial Services. However, the trade-off was that these often didn't get the same level of engagement.

The Bigger Picture

TikTok has quietly emerged as one of the most used platforms for sourcing financial education. This is especially true amongst younger generations, with viral investing videos attracting millions of views amongst these cohorts.

After finding promises of "hidden gems" and some videos glamorizing high-risk strategies like leverage trading, the report makes clear that beginner investors risk mistaking entertainment for education.

The study notes that regulators, from the Securities & Exchange Commission (SEC) in the US to the Financial Conduct Authority (FCA) in the UK, are stepping up their efforts to oversee "finfluencers." Yet despite some warnings and arrests, enforcement remains a challenge.

Lessons for Viewers

The Finance TikTok Report Card urges viewers to approach financial content with a healthy dose of skepticism and to use TikTok as a starting point rather than a final source for investment decisions.

Key tips include:

• Recognize the Algorithm: TikTok shows videos because they're engaging, not necessarily because they're accurate.
• Treat "Guaranteed" Claims as Red Flags: Be wary of any video promising definite returns, especially those without risks.
• Learn to Spot Oversimplification: If a video skips context like the downsides, time horizons, or associated fees, then it's not providing all the facts.
• Curate Your Feed Deliberately: Follow credible educators and avoid liking, commenting or sharing content from creators making sensational claims.
• Remember Who's the Product: Many creators profit from viewers' attention, so always question their motives when the advice seems free.

Holmes cautioned: "If you're watching Finance TikTok, remember that hype beats accuracy in the algorithm. Treat bold claims with caution, and tune in to creators who focus on education over engagement."

The full report is available at: Finance TikTok Report Card

About DayTrading.com

DayTrading.com is a free resource that publishes guides for active traders, reviews of brokers and trading platforms, and market analysis used by retail investors worldwide. Its research has been cited by leading media outlets within finance and the national press.

Contact

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James Barra

DayTrading.com

[email protected]

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SOURCE DayTrading.com