BMO InvestorLine Study: Online Investors Flocking To Social Media Platforms For Advice
- Nearly two-thirds use social media sites for investing tips/information
- Thirty per cent anticipate upping their online investing in the next few years
TORONTO - BMO InvestorLine today announced the results of a new study which reveals that a significant majority of online investors are turning to social media platforms for information on which to base their online investment decisions.
When asked to identify the specific online properties they were accessing:
- Forty per cent stated they use online financial communities or forums
- Sixteen per cent track blogs
- Ten per cent access Facebook
- A further 8 per cent rely on Tweets (Twitter) for their investing advice
The survey, conducted by Leger Marketing, also shows that online investors are eyeing new technologies closely, with 31 per cent saying they would prefer using a tablet or smartphone to do their online investing.
“The results of the survey are very encouraging. They reflect the fact that online investors are ahead of the curve when it comes to adopting and leveraging technology,” said Connie Stefankiewicz, President and CEO, BMO InvestorLine. “However, people need to be careful about where they get their investing information. They should ensure it’s from a reputable source and, as always, they need to keep in mind that there are no short cuts when it comes to successful investing.
Ms. Stefankiewicz points out that BMO InvestorLine provides access to a broad range of investment research to help clients validate the information and ideas that clients find on social media sites.
The study also looked into where Canadians see themselves investing in the next three to five years:
- Fourteen per cent will be investing more through the use of an online account
- Fifteen per cent see themselves investing more using a combination of an online account and an investment advisor.
Other Key Findings
- Most online investors (61 per cent) consider themselves to be “buy and hold investors” (i.e. making trades once in a while). Only eight per cent of online investors rank themselves as being “active traders” (i.e. making trades weekly).
- Men are more likely than women to invest, whether it be online, with an advisor / full service brokerage, or both (63 per cent vs. 50 per cent).
- Men are more likely than women to use a smartphone to invest online (16 per cent versus 3 per cent, respectively).
Ms. Stefankiewicz notes that investors who are considering online investing should look for an online brokerage that is easy to use, has a variety of stock selection tools and provides a robust educational offering.
About BMO InvestorLine:
BMO InvestorLine provides users with third party research, along with leading edge tools that are informative and easy to use. BMO InvestorLine offers a full array of comprehensive resources, including online seminars, webcasts, blogs and online tutorials. As an all-in-one investment source, it is a constantly evolving, cost-efficient platform that is fully compatible with tablets and iPhones.
The online survey was conducted by Leger Marketing from March 28 – March 30, 2011, with 1501 Canadian adults. The study has a margin of error of +/-2.5 per cent.
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