An interesting set of results published by CySEC following a survey on retail investor behavior reveal more about the decision making processes of such users. Additional information on the challenges that the regulator faces have been revealed.
The survey questioned people from various backgrounds, all trading differently at their own leisure, without giving any group extra attention over another. 17 percent were traders on a weekly basis. 25% of the participants traded at least once every month, and 19% were traders on and off within 4 to 6 months.
22 percent, the study found, based their decisions on digital promotions and celebrity ad campaigns. 42% did research on their own, while 37% were recommended form a third party. Only a third of the surveyed sought financial expert help.
TikTok, Instagram, YouTube, and Twitter are spearheading influencer financial service advertisement culture. In the UK 34% of the surveyed rely on fin influencer, while in France it is almost half of all, at 42%. German surveyed retail traders reveals that 24% of them depend on influencers.
As for financial investments experts, 48% of the French based survey taker relied such personnel, while 34% in Britain and Germany.
CySEC added that all financial regulators have to play a larger and more active role in curbing risky behavior as well as protecting users from false advertisements.
