Autorenprofil
An Overview of Study Results Conducted by Students at Frankfurt School of Finance & Management.
Financing advice no longer comes mainly from banks or newspapers, especially not for younger investors. Instead, it shows up directly in social media feeds. On TikTok, Instagram and YouTube, finfluencers explain which stocks are “trending” or which trade promises quick returns. Their reach is enormous and their influence continues to grow.
At the same time, regulators and consumer protection agencies are raising concerns. They warn that entertaining, short-term financial content may encourage impulsive trading decisions. But does exposure to financial content on social media really lead young investors to trade more frequently?
Young adults are becoming increasingly active in capital markets. According to the German Share Institute, the number of young investors has nearly doubled over the past decade. At the same time, this generation spends several hours a day on social media, where financial content is more visible than ever.
Academic research suggests a link between media exposure and investment behavior. Concepts such as fear of missing out (FOMO) and overconfidence bias are often cited. As a result, policymakers frequently call for stricter regulation of financial content online. However, empirical evidence on whether such concerns are justified remains limited.
Against this background, we conducted a study as part of the Applied Research Methods module at Frankfurt School of Finance & Management under the supervision of Dr. Ivan Tadic.
Our central research question was simple but relevant:
Does exposure to financial content on social media affect how often young investors trade?
To answer this question, we collected primary data using a general questionnaire and a two-part online survey. Our sample consisted of 98 bachelor’s students at Frankfurt School, all of whom completed the survey in full.
We collected data on: Demographics and risk preferences, Personal investment behavior, Trading frequency, Exposure to financial content on social media, Subjective financial knowledge.
Contrary to common assumptions, our results show that exposure to financial content on social media does not significantly influence trading frequency.
This does not mean that financial content has no impact at all. Rather, it suggests that content consumption alone is not enough to explain why some young investors trade more frequently than others.
Instead, three personal factors turned out to be significant:
Age
Even within a relatively narrow student age group, younger investors tend to trade more frequently than older ones.
Income
Students with higher monthly income trade more often. Greater financial flexibility appears to encourage more active trading.
Investment Experience
Inexperienced investors trade less frequently, likely due to uncertainty and lack of routine. Interestingly, very experienced investors do not trade significantly more than moderately experienced ones, possibly because they follow long-term investment strategies instead of frequent trading.
Our findings suggest that trading behavior is shaped primarily by personal circumstances rather than by social media exposure. Younger investors may trade more actively because they face fewer financial obligations and are more willing to experiment.
Higher income provides both the opportunity and the confidence to trade more frequently. Investment experience matters most at the lower end: beginners tend to be cautious, while experienced investors follow diverse strategies; from day trading to long-term Investment Funds.
Overall, trading frequency depends more on age, income and experience than on the mere consumption of financial content.
These results have important practical implications: Financial platforms and brokers should not assume that finfluencer marketing automatically leads to increased trading activity. Similarly, broad regulatory restrictions on financial content may be less effective than anticipated. Overall, the findings suggest that trading behavior is multifactorial, underscoring the need for continued research in behavioral finance.
Social media strongly influences how young people learn about financial topics, but not necessarily how often they trade. The idea that financial content inevitably leads to excessive trading deserves a more nuanced perspective.
Age, financial resources and investment experience remain key drivers of trading behavior. Understanding these factors can support better financial education, smarter regulation and more responsible product design in trading apps.
Ultimately, empirical research plays a crucial role in clarifying what truly shapes the investment behavior of young people.
Clara Ostermann
Bachelor of Science in Business Administration, Class of 2028
linkedin.com/in/clara-ostermann-27686030b
Isabell Jakoby
Bachelor of Science in Business Administration, Class of 2028
linkedin.com/in/isabell-jakoby
Sebastian Kaiser
Bachelor of Science in Business Administration, Class of 2028
Frankfurt School gGmbH
Adickesallee 32-34
60322 Frankfurt am Main
