The Rise of the Finfluencer: What Aussie Investors Need to Know

Quick Look

Focus: How social media influencers are shaping investing decisions — for better or worse

Key Takeaways:

Finfluencers can move markets without offering genuine financial insight
Most are unlicensed and may not disclose conflicts of interest
Everyday investors risk mistaking hype for real investment value
Reading Time: ≈ 7 minutes

Introduction

It’s never been easier to invest — or be influenced.

From TikTok to Twitter, a growing number of “finfluencers” are shaping how everyday Australians think about money, shares, crypto and financial freedom. Some aim to educate. Others entertain. A few blur the lines entirely.

But as regulators sound the alarm, it’s time to look at what’s really going on — and why being cautious could save you from costly mistakes.

Context & Problem: Why Finfluencers Matter Now

In the past, stock tips came from brokers or trusted financial journalists. Now they come from creators with catchy nicknames and slick editing — many with no formal qualifications.

Finfluencers (financial influencers) are individuals who post content about investing, often via social media, and hold real sway over their followers’ money decisions. That might not sound so bad — until you realise many:

Prioritise popularity over accuracy
Get paid to promote shares or products without saying so
Can cause huge price spikes (or crashes) based on little more than a meme or emoji

In 2022, the US SEC charged eight social media personalities for manipulating stock prices. In Australia, ASIC and MoneySmart continue to warn consumers about relying on unlicensed social media advice.

If you’re taking financial cues from someone because they “seem legit”, it’s time to look closer.

Strategy & How To: Spot the Hype Before It Hits Your Wallet

Here’s how to approach finfluencer content safely — without falling for hype:

Learn the Types of Finfluencers

Finfluencers come in different flavours:

Paid Celebrity Finfluencers: Big names like Kim Kardashian, paid to post about financial products (e.g. crypto).
Identity Finfluencers: High-profile figures like Elon Musk or business leaders whose tweets can move markets — whether they mean to or not.
Ordinary Investor Finfluencers: People who build a following by sharing personal finance tips or stock picks.

Some are trustworthy. Many are not. And none are licensed to give you personal advice.

Ask These Questions Before Taking Action

Are they licensed?
In Australia, anyone giving personal financial advice must hold an AFSL (Australian Financial Services Licence). Check ASIC’s Financial Advisers Register if unsure.

Financial advisers register – Moneysmart.gov.au

What are their motives?
Are they promoting a product? Paid by a platform? Or just chasing clicks?
Is it evidence-based?
Watch for vague claims, promises of quick returns, or buzzwords like “get rich” or “to the moon”.
Are others just copying them?
Meme stocks like GameStop or AMC soared partly because people followed influencers rather than fundamentals.
Are they upfront about risks?
Genuine educators talk about downside risk, not just upside potential.

Stay Grounded With Real Information

Trust licensed professionals, not loud personalities
Use resources like gov.au for impartial, verified guidance
Consider speaking to a qualified adviser for any decision involving your super, investments, or long-term savings

Case Study: GameStop & the Power of Roaring Kitty

In early 2021, US finfluencer “Roaring Kitty” (real name Keith Gill) helped drive GameStop’s share price from under US$4 to nearly US$500. He wasn’t a scammer. He believed the stock was undervalued. But once the internet caught on, the rally became a movement — complete with catchphrases like “diamond hands” and “I like the stock”. Many latecomers jumped in out of FOMO, not facts. Some made money. Many didn’t. It was a powerful reminder that online movements can distort market logic — and that hype is not a strategy.

Common Questions & Misconceptions

“If a post gets thousands of likes, it must be good info, right?”

Not necessarily. Likes reflect popularity — not accuracy or ethics.

“Isn’t it OK to follow finfluencers if I don’t put in much money?”

Even small investments can add up. Don’t gamble your financial future for entertainment.

“They’re just sharing what they do — is that illegal?”

If they’re paid to promote a product and don’t disclose it, or if they encourage others to trade without a licence, they may be breaking the law.

“But they’re improving financial literacy, aren’t they?”

Some are. But many oversimplify or spread misinformation. Education means helping people understand risk — not avoiding it.

Conclusion

Finfluencers are here to stay. They can be helpful, harmful, or just hype.

If you’re learning about money on social media, that’s a great first step. But real investing involves more than viral videos or trending hashtags. The best decisions come from clear goals, good advice, and evidence — not emojis.

Learning to spot the difference puts you ahead of the crowd.

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Disclosure: General information only. Consider your objectives, financial situation and needs, and seek professional advice before acting.

How We Keep It Trustworthy

Every article includes a Review & Fact Check section below — so you know exactly where our facts come from, what’s uncertain, and whether there’s any bias.

Review & Fact Check

1. Fact References

Definition of finfluencer – NASAA, August 2022
Regulatory warnings – ASIC and MoneySmart (moneysmart.gov.au), updated regularly
GameStop case – US SEC and financial media reporting, 2021
Social media investment trends – NYU Journal of Law & Business Vol 19, Summer 2023
ASIC financial adviser licensing rules – Australian Securities and Investments Commission (asic.gov.au)

2. Unverified or Inconclusive Items

Estimated shareholdings of retail investors in Tesla, AMC and others from overseas sources — not independently confirmed in Australian context.

3. Time Sensitivity

Regulatory enforcement examples cited are current as of 2023–2024.
ASIC content and ATO licensing information may change — always check official sources.

4. Bias Assessment

Neutral and educational. This article contains no commercial product endorsements and avoids promotional bias.