In recent days, you might have heard of a new type of trading on YouTube & Instagram – colour trading. Fake finfluencers are promoting it by showing unrealistic profits in a day, manipulating & attracting viewers. Most people claim that they are making money, but before getting into it, let’s get into the details: is colour trading a scam or not?
What is Color Trading?
Before understanding this scam, first let’s understand what color trading is.
In simple terms, color trading is where the users have to guess which color will appear next- red, green, or violet. If your guess work is correct, then you will win; otherwise lose.
Now, if it were trading, then guess is something that does not work.
But understanding its meaning, it purely depicts that colour trading is nothing but a digital gambling that is playing with people seeing themselves as trader.
Influencers generally influence people by displaying & promising:
- Instant profits
- No trading skills needed
- Easy money from home
Why Colour Trading is a Scam?
Let’s get one thing straight:
Real trading involves studying markets, analyzing data, and making informed decisions through SEBI-regulated platforms.
But when it comes to colour trading, here’s how these apps operate:
- Fake Initial Profits: New users often win small amounts to build confidence.
- Addiction Trap: As users continue, they start investing more, chasing losses.
- Manipulated Results: There is no transparency. The system is likely rigged.
- No Legal Backing: These apps are not registered with SEBI or any financial authority.
- No Accountability: When users try to withdraw funds, accounts often get blocked.
This is not financial trading, it’s psychological exploitation.
Colour Trading Scam – Real Life Case
Every day, thousands of youth are getting trapped in colour trading and losing their hard-earned money in the greed of getting rich quickly.
One of the victims registered a complaint with us who lost around ₹1.5 lakh in a colour trading scam.
He is not alone; others have lost their money and are now facing financial & emotional distress. There are:
- People have lost tens of thousands of rupees, sometimes even lakhs
- Some have borrowed money to recover losses, only to fall deeper into debt
- Many suffer mental stress, anxiety, and relationship problems
- Victims rarely recover their money, and there’s no customer support to turn to
When the scam is exposed, the app either changes its name or disappears entirely.
How to Report Colour Trading Scam?
Since colour trading is a kind of digital gambling and is not regulated by anybody. Although people consider it as trading, in real there is, no such trading exists in the real-world.
Scammers have built this app or software just to trap people who dream of getting rich overnight.
So, in the first place, you need to be safe and alert before choosing any such platform to make money. However, if you have been unfortunate and have fallen victim to any such scam, then act quickly.
Register with us and get guidance to report the complaint on the respective platform and get end-to-end assistance in documentation, drafting, and follow-up post-filing a complaint.
Conclusion
Yes. Color trading is a scam. It’s not a financial opportunity, it’s a psychological trick designed to take your money.
If you or someone you know is using such an app, uninstall it immediately and spread the word. Awareness is the first step toward prevention.
