New digital trade platforms and advanced technologies have transformed the investment space to offer traders new modalities of making profits. Among the most popular ones adopted today are copy trading and social trading. Though the terms are often used interchangeably, they represent two methods that carry out the processes differently and have very different applications.

We will discuss how we can differentiate between copy trading and social trading in this article so as to help you better choose between the two approaches. Further, we will enlighten you on the aspects through which Combiz Services Pvt. Ltd. can provide you with a seamless platform to get involved with both strategies.

What is Copy Trading?
Copy trading is where investors can replicate real-time trades of experienced and successful traders. Joining a copy trading platform will link your account to another trader's account; every one of their trades is automatically mirrored onto yours. If the trader opens a new position, you open the same position; if they close a trade, your trade gets closed as well. Essentially, you're copying their trades directly.

How Does Copy Trading Work?
As soon as you activate and choose a trader whose activities you want to copy, you deposit funds into the account and create a link for the copy trading with the chosen trader. Your "signal provider" will be the trader whom you follow, and his actions will mirror to your portfolio. However, you can only have control over minimum positions unless the trading platform allows you to close or modify positions yourself.
Combiz Services Pvt Ltd offers an effective copy trade app that helps connect users with experienced traders who can easily follow their strategies with the least effort. Features of the system are such that one can gain a level of passive profitable gains on other people's expertise as well as some degree of control over one's accounts.

What is social trading?
Social trading is gathering data when one is able to see the moves of others and, through probably imitating them, compare and contrast the methods and approaches. Some even say that this form of social trading makes the learning curve down because it allows traders to trade in tandem with the support of others.

How does social trading work?
A social trading platform will allow you to follow other traders, participate in discussions, and receive real-time updates about the trades being made. The similarity with copy trading stops here, as you do not automatically replicate the trades. You are still in control of your actions and decisions but will have access to the shared knowledge of the trading community.
Combiz Services Pvt Ltd, in a way, is enabling social trading through a community-driven platform where they network with other like-minded people who share their trading ideas, and collective knowledge helps in improving those skills. Connecting with other traders allows you to improve trading skills and develop your strategy based on collective knowledge.

Key differences between copy trading and social trading
Although overall, the objective of social trading and copy trading is somehow the same—earning from others—there are a few key distinctions between the two strategies.

Level of Control: The level of control that the consumer has over what they trade is much higher, as the user can decide to follow or replicate some of the trades depending on their analysis and judgment through social trading. On the contrary, copy trading just automatically replicates the trades, giving consumers virtually no control over what makes each trade executed.

Community participation: The social trading systems enhance knowledge sharing through features such as forums, chat rooms, and news feeds. Copy trading is mainly concerned with the following individual traders but not with the same level of community participation.

Risk management: Social traders provide a possibility for the diversification of exposure because numerous traders with varied risk profiles and trading techniques may be tracked. Users would probably run a higher risk unless proper due diligence has been conducted because copy trading is largely based on the performance of particular signal providers.

Learning Opportunities: Social trading, with engagement and interaction with other fellow peers and professionals, provides the trader with invaluable learning opportunities in terms of upgrading their potential as well as capability and skills. No doubt, it is very convenient; however, copy trading can more often be a learning limitation because it does not call for active involvement in the trading process but allows only passive replication.

Choosing between Copy Trading and Social Trading
This would depend on what you seek to achieve in trading and to what level you have experience and appetite for risk.
Choose Copy Trading if:

• You are a beginner who prefers a hands-off approach to trading.
• You want to track the strategies of an experienced trader with minimal effort.
• You have less free time for in-depth research and analysis.

Choose social trading if:

• You enjoy carefully analyzing trends in the market and discussing strategies with other traders.
• To get insights from other traders while still maintaining their control over investment decisions.get insights from other traders while still maintaining their control over investment decisions.
• Learn and improve your skills through community interaction.

Final Thoughts
Copy trading and social trading have unique advantages for traders, especially those who would like to leverage other people's expertise. Copy trading is quite useful for those who need a hands-off, automated investment experience, whereas social trading offers higher flexibility in active participation and learning from a community of traders.

With this understanding of the basic differences between such strategies, one would be able to take an informed decision on the choice of the method that would best apply to the investment goals. Platforms like Combiz Services Pvt Ltd offer both options to help users maximize their trading success, whether in copying trades automatically or in learning through social interaction.
Whether a newcomer looking for an easy-to-understand copy trading app or an expert, avid trader interested in social trading, they both offer great opportunities to increase your investment portfolio.