How to avoid bad financial advice and make smarter investing decisions
Posted: Mon Feb 10, 2025 4:34 pm
At MoneySmart, we do more than just connect consumers to personal financial products. Through our blog and licensed insurance professionals, we are committed to providing well-researched financial advice and practical guides to help them make important financial decisions – whether it’s investing, saving, budgeting, or choosing the right credit card, loan or insurance plan.
While social media has made financial advice more accessible, it also carries the risk of unverified sources. In an era of unproven financial advice, we focus on providing individuals with the tools, strategies, and recommendations they need to make informed decisions and reach their desired financial goals. "
As financial hubs, Hong Kong and Singapore face similar challenges and opportunities when exploring different financial advice on social media. Industry experts from both locations, including Ethel Yow, Social Media and Content Manager for Asia Pacific and the Middle East at IG Markets, and Joe Yu, Head of Marketing at Futu Securities, Hong Kong’s largest fantuan data licensed tech broker, provided valuable insights on how to deal with investment advice on social media, hoping to help consumers make informed decisions and avoid falling into common traps.
1. Be wary of claims of “high returns” and “no risk”
Ethel and Joe remind everyone to be extra careful about content that attracts attention by sensationalism, such as investment products that claim to be "guaranteed to make money" and "risk-free." This type of discussion is usually aimed at attracting clicks, using content such as "100% winning strategy" or "how to become a profitable trader" to attract customers. These exaggerated headlines are designed to grab readers' attention, but credible investment advice should provide a fair explanation of the expected returns and risks of an investment.
2. Verify the accuracy and authenticity of social media recommendations
The lack of regulation on social media means that anyone, professional or not, can freely post finance-related content. Ethel advises investors to verify the authenticity of social media advice from credible news organizations, company reports and licensed financial advisors.
While social media has made financial advice more accessible, it also carries the risk of unverified sources. In an era of unproven financial advice, we focus on providing individuals with the tools, strategies, and recommendations they need to make informed decisions and reach their desired financial goals. "
As financial hubs, Hong Kong and Singapore face similar challenges and opportunities when exploring different financial advice on social media. Industry experts from both locations, including Ethel Yow, Social Media and Content Manager for Asia Pacific and the Middle East at IG Markets, and Joe Yu, Head of Marketing at Futu Securities, Hong Kong’s largest fantuan data licensed tech broker, provided valuable insights on how to deal with investment advice on social media, hoping to help consumers make informed decisions and avoid falling into common traps.
1. Be wary of claims of “high returns” and “no risk”
Ethel and Joe remind everyone to be extra careful about content that attracts attention by sensationalism, such as investment products that claim to be "guaranteed to make money" and "risk-free." This type of discussion is usually aimed at attracting clicks, using content such as "100% winning strategy" or "how to become a profitable trader" to attract customers. These exaggerated headlines are designed to grab readers' attention, but credible investment advice should provide a fair explanation of the expected returns and risks of an investment.
2. Verify the accuracy and authenticity of social media recommendations
The lack of regulation on social media means that anyone, professional or not, can freely post finance-related content. Ethel advises investors to verify the authenticity of social media advice from credible news organizations, company reports and licensed financial advisors.