What’s in the blog?
This blog explores how social media has changed the way we talk about money and investing. While it has made markets more accessible and exciting, it has also opened doors to risky shortcuts, pump-and-dump schemes, and unverified advice. With SEBI data showing that most retail traders lose money, the takeaway is simple: enjoy the conversations online, but when it comes to actual investments, rely on professional, regulated advice.
Table of Contents
When I started my journey in the world of finance, investment was never part of daily conversations for people outside the industry. People discussed politics, cricket scores, or the state of the economy, but very rarely their own money. Even a decade ago, talking about stocks or SIPs at the dinner table was not the norm.
Today, the scene has completely changed, and for that, I give a lot of credit to social media. Scroll through Instagram or open a WhatsApp group, and you’ll see young people debating mutual funds, crypto, and stock picks with the same enthusiasm as movies or sports. IPOs become a hot topic just like a new movie release.
As someone who has spent years trying to spread awareness about the importance of saving and investing, I genuinely feel happy watching this shift.
But with this pride also comes worry. I feel like a parent who’s thrilled to see their child finally learn how to drive, yet every time the child takes the car out on a busy road, the heart skips a beat. Social media has democratized access to market knowledge, but in doing so, it has also blurred the line between awareness and advice. And that is where caution becomes essential.
How Investment is Entering Everyday Talk: The Real Picture
Three decades ago, only a tiny fraction of Indians had even heard of the stock market. In the early 1990s, fewer than 10,000 people out of 75 million were directly engaged with it. Fast forward to today:
- Demat accounts have jumped from ~4 crore in 2020 to over 15 crore by 2024. The number is only increasing.
- In August 2025, retail G-sec trades via RBI’s Retail Direct hit ₹4,267 crore, which is a 5x increase from the same month a year earlier.
This is remarkable progress. It shows how conversations about money, investing, and financial planning have finally entered mainstream discourse. And yes, social media has been a great amplifier of this change.
Now, it’s tempting to think everyone is making money trading. The truth, however, is sobering. SEBI’s own studies show:
- 91% of individual traders in equity derivatives lost money in FY 2024–25.
- 7 out of 10 intraday equity traders also ended up with losses. Over just three years, retail F&O traders lost ₹1.8 lakh crore cumulatively.
- In FY 2024–25 alone, losses widened to ₹1.05 lakh crore—a staggering 41% jump from the year before.
So, while social media makes trading look easy and glamorous, the odds are heavily stacked against retail traders. Social media brings enthusiasm, but enthusiasm without education is often dangerous.
How Social Media Shapes Investor Behaviour
So far, we have talked about numbers. But, humans make decisions more on emotions rather than on numbers. That is why social media is able to shape our investment behaviour. Let us explore how social media targets your emotions and how it impacts your investment decisions.
Friends forwarding reels & tips
It usually starts innocently; a friend shares a reel about the ‘next big stock’ and we don’t want to miss the chance. While these chats and forwards are good for spreading awareness, they are no substitute for research or professional advice.
Unauthorized Telegram & WhatsApp channels
These are perhaps the most dangerous because they are often created with malicious intent. Many lure investors with ‘free tips’ that often end up being pump-and-dump schemes. The operator exits with a profit; the followers are left holding losses.
Crypto platforms & meme coin mania
Crypto brought innovation – decentralization, tokenization, instant global transfers. But hype around meme coins like Dogecoin and Shiba Inu turned investing into gambling. Success stories trend, but the thousands who lose big money rarely go viral. You would know the success stories of Trump and his sons, Elon Musk, etc., but you would never know the stories of millions who lost everything.
Finfluencers: the double-edged sword
Some finfluencers do excellent work simplifying complex ideas and encouraging financial literacy. But many also push sponsored content or paid promotions under the guise of advice. And seriously, it is almost impossible to figure out what advice to follow and what to just watch as entertainment.
Licensed advisors & regulated platforms
On the other hand, SEBI-registered advisors (RIAs) and licensed platforms operate under strict compliance and disclosure norms. Their advice might not be as flashy as a viral reel, but it’s built on accountability. On MoneyAnna’s Instagram, for example, you will never find the ‘next big’ hype creating reel, just simple, educational reels on money matters.
What Should be the Takeaway for the Investors?
By now, you must have understood that social media is just a medium that has given equal playing ground to people who genuinely care for you as well as those with malicious intent. So, the answer to the question of whether trading advice on social media is filling or emptying pockets lies in how you actually use it.
- If you use social media as a tool for learning, not a substitute for research, you won’t be losing money.
- If you are sceptical of free tips and get-rich-quick schemes, you will probably be not putting your money at the wrong place. You can use a simple tip here – if something sounds too good to be true, it probably is.
- If you are mindful of choosing whom to follow and from where to take the knowledge, you will be reducing the chance of social media messing up with your investment decisions.
What Regulators Are Doing
At this point, you might have a question in your mind – “Gaurav, what are the regulators doing if there are people luring unsuspecting investors into wrong trades?” And, I must say that regulators are doing their best by stepping in wherever they recognize a risk.
- SEBI has tightened rules on derivatives trading, rationalizing contracts, raising margins, and publishing hard data on retail trader losses to caution participants.
- RBI’s Retail Direct scheme now allows individuals to invest directly in government securities, and has even introduced SIPs in Treasury Bills, encouraging safer, long-term habits.
It is very clear that regulators want to steer investors away from speculative traps and towards stable, transparent instruments. And, this now puts the responsibility on your shoulders to be aware, vigilant and smart in your approach.
My Take
I’m genuinely glad that conversations about money have entered our everyday lives. Social media deserves credit for making investing cool, accessible, and less intimidating. And I seriously don’t see social media as the culprit for people burning their money in the wrong places.
Social media brings all kinds of information to us. The power of rational thinking lies within us.
Talk about stocks with friends, debate crypto on WhatsApp, enjoy the buzz of social media, but when it comes to where your money actually goes, trust the professionals. Because while awareness fills pockets with knowledge, unfiltered advice from social media can empty them of wealth.
Frequently asked questions (FAQ)
Because it makes financial content more accessible, relatable, and viral. A stock reel or crypto meme spreads faster than a research report.
A blanket statement in this matter will be an injustice. Some are doing great job in providing good education and financial awareness. However, there are many who promote paid partnerships or have hidden interests. Always research the creator’s intent before following their advice.
No. Crypto is highly volatile and speculative. Treat it as high-risk, not a quick wealth-building tool.
Start small with regulated products like mutual funds, ETFs, or government securities via RBI’s Retail Direct.
Even for small trades, use stop-losses and never risk more than you can afford to lose. Social media tips should not be your main strategy.
