The latest edition of the Investor Survey by the FINRA Investor Education Foundation, part of the National Financial Capability Study (NFCS) 2024, confirms a structural shift in the behavior of U.S. retail investors. Following the surge in market participation during the pandemic, the flow of new entrants has dropped sharply, while social media—and especially finfluencers—are playing a central role in the decision-making of younger investors.
Fewer New Investors and a Decline Among Young People
The report shows that the investment boom is fading: only 8% of respondents began investing in the two years prior to 2024, a sharp decline from 21% in 2021. Participation among those under 35 also fell significantly—from 32% to 26%, reversing much of the progress made during the COVID era.
According to FINRA, this suggests that a significant share of those who entered the market between 2019 and 2021 later withdrew, changing the average investor’s age profile. The decline is also observed—though to a lesser degree—among men and people of color.
Dominant Asset Types
Individual stocks remain the most common vehicle (80%), followed by mutual funds (57%) and ETFs (31%). Individual bond ownership reaches 33%.
In terms of risk appetite, the report indicates greater overall caution: only 8% say they are willing to take substantial risks, down from 12% in 2021. However, among those under 35, the willingness to take risks remains significantly higher, along with greater use of complex products:
43% of young investors trade options
22% use margin
9% have invested in meme stocks or other viral assets
Meanwhile, cryptocurrency exposure remains steady at 27%, but fewer investors intend to increase their position or buy for the first time (26% vs. 33% in 2021). Perceived risk has increased: 66% now consider crypto to be “very or extremely risky.”
Meme stocks (or memecoins) remain relevant, but mostly among younger investors: 29% of those under 35 have purchased them, compared to only 2% of those over 55.
Finfluencers and YouTube: Now a Structural Channel
One of FINRA’s most notable findings is the consolidation of the digital ecosystem as a key source of financial information:
YouTube is the most used platform for investment purposes (30% overall and over 60% among young people)
26% of all investors follow finfluencer recommendations—rising to 61% among those under 35
The influence of these actors is growing especially among new investors and ethnic minority communities, presenting challenges for regulators and financial advisors.
Financial Literacy and Fraud Risk: Warning Signs
FINRA highlights a persistent issue: low financial literacy levels. On average, investors answered only 5.3 out of 11 questions correctly in the test included in the survey.
The survey also reveals significant fraud vulnerabilities:
37% are concerned about losing money to scams
50% would invest—or do not rule out investing—in a classic fraudulent offer: a “guaranteed 25% annual return with no risk”
FINRA stresses that even investors who consider themselves highly informed often fail to identify clear signs of fraud, showing a confidence bias.
Implications for the Industry
For asset managers, advisors, and platforms, the report leaves three key messages:
Retail growth is no longer linear. The decline in youth participation demands sustainable acquisition strategies and more ongoing education.
Youth risk-taking persists, though with nuances. Products like options, margin, and crypto remain more popular among younger and newer investors.
The battle for trust is happening on social media. The structural influence of YouTube and finfluencers requires a stronger educational presence on these platforms and improved communication on risk and fraud awareness.
