2024 Investor Index reveals Canada’s shifting investment landscape

Access to reliable investment information is key as nearly a quarter of all investors are confronted by potential scams

Calgary – A national survey commissioned by the Canadian Securities Administrators (CSA) found that 23 per cent of Canadians report encountering possible fraudulent investments, an increase of five percentage points since 2020.

“How Canadians research and manage their investments continues to change, with more investors seeking information from social media and turning to do-it-yourself (DIY) investing,” said Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission. “Surveying investor behaviour on a regular basis allows the CSA and its member jurisdictions to enhance existing investor education tools and develop targeted new programs to help Canadians invest wisely and avoid fraud.”

The 2024 CSA Investor Index provides valuable insight into Canadian investing trends and fraud in an ever-evolving financial landscape. The long-running survey, first published in 2006, tracks key measurements, including investor behaviour, knowledge, confidence, attitudes towards risk, and incidences of investment fraud.

More findings include:

• More Canadians are using social media for investment information: Investors who use social media for investment information increased 18 per cent since 2020 to 53 per cent. Notably, 82 per cent of 18- to 24-year-old investors use social media, with YouTube, Instagram and TikTok being the most popular choices in this age group. Moreover, 46 per cent of Canadians report encountering investment opportunities on social media, which is a 17 per cent increase from 2020, and is also especially common among younger age groups.
• Nearly half of investors say they DIY invest: Forty-five per cent of investors say they have a self-directed account, and 30 per cent of these DIY investors first opened that account within the last two years.
• Fewer investors report having a financial advisor in 2024: Sixty-one per cent of investors said they currently work with a financial advisor, down eight per cent from 2020. The largest drop was for investors under the age of 45 and those with portfolios less than $100,000.
• Investment fraud trends upward for younger investors: While investment fraud has decreased in older demographics since 2006, reported fraud doubled with almost all other age groups.  Younger investors 18-24 years old saw the highest reported increase from 0.4% to 5%.

The 2024 CSA Investor Index survey was conducted in March 2024 by Innovative Research Group. It consisted of a representative sample of 7,215 Canadian adults, weighted by age, gender, province, and education using 2021 Statistics Canada census data to reflect the actual demographic composition of the population. Additionally, weighting targets were set by investment portfolio size and type of investment accounts, using data from Statistics Canada’s Survey of Financial Security, to accurately reflect the population of Canadian investors within the sample.

The 2024 CSA Investor Index is available on the CSA website.

The CSA website has a variety of tools and resources to help investors avoid fraud and verify the registration of any individual, firm or platform they plan to work with. Canadian investors are encouraged to visit the site to learn more about making informed investment decisions.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.