In recent years, color trading has become a viral trend on platforms like YouTube, Instagram, and Telegram.
Influencers often present it as an easy way to earn money online, “no skills needed,” “instant profits,” and “work from home.” But behind these promises lies a serious question: Is color trading gambling?
If we take into account what financial experts and regulators are saying, the answer is yes.
In most cases, color trading isn’t actual trading but just online gambling in disguise.
What Is Color Trading?
Color trading is an online “prediction” game where users bet on which color, usually red, green, or violet, will appear next. If the prediction is correct, they win a small payout; if not, they lose their money.
There’s no link to real financial markets, assets, or trading instruments.
The results are controlled by hidden algorithms, not by genuine market factors. This makes color trading a game of luck, not an investment or skill-based activity.
Why Color Trading Is Considered Gambling?
- No Real Market Involvement
In actual trading, investors buy or sell assets like stocks, currencies, or commodities influenced by economic factors. In color trading, no such assets exist; users are simply betting on a random outcome. - No Regulatory Oversight
These platforms are not registered with SEBI (Securities and Exchange Board of India) or RBI (Reserve Bank of India), so there is no transparency or investor protection. - Based Entirely on Luck
Unlike trading, which involves data analysis and risk management, color trading relies solely on chance. Some apps even manipulate outcomes to ensure users lose after initial small wins. - Operates Like Online Betting
Color trading apps mimic gambling platforms; users deposit money, place quick bets, and see immediate results. This setup triggers excitement and addictive behavior, often leading to repeated losses. - Legal Status in India
Under the Public Gambling Act of 1867, gambling is illegal in most Indian states unless specifically permitted. Since color trading isn’t SEBI-regulated, it’s treated as gambling and may have legal implications.
Unregulated Color Trading Apps in India
A lot of unregulated apps continue to allure users with promises of quick cash. Here are a few to watch out for:
- Skill Color: Markets itself as “skill-based,” but outcomes are random and unverified.
- Tiranga Game: Promoted as an easy money app; users report manipulated results and failed withdrawals.
- 91 Club: Offers color prediction games and bonuses, but cybersecurity experts warn of fraud and data risks.
Once these apps collect enough deposits, they often block accounts or vanish overnight.
Color Trading Risks
Participating in color trading carries severe financial and personal risks:
- Financial Loss: The apps will build trust by giving you small early wins, but then follow it up with large, unavoidable losses.
- Data Theft: You might be required to give sensitive information, like your bank or ID information, which can be misused.
- No Legal Protection: Being unregulated, victims of fraud have limited legal recourse or protection.
- Addiction: The fast-betting nature creates dependency and emotional distress.
How to Report Trading Scams?
If you’ve been scammed:
- Stop payments immediately.
- File a cyber crime complaint.
- File a complaint with your local cyber cell and share proof.
- Inform your bank to block suspicious transfers.
- Avoid posting personal details publicly; scammers often pose as “support agents.”
Need Help?
If you have been unfortunate and lost money due to such colour trading scam, then do not fret!
Register with us, and we will guide you through the process to report your complaint online to get a recovery.
Conclusion
So, is color trading gambling?
Yes, it is almost always. It relies heavily on luck, lacks regulation, and exposes users to data and financial losses.
While these apps might come out to be harmless at first or even fun to use, they trap users with small wins and eventually lead to huge losses. Responsible investing takes a lot of patience, knowledge, and understanding of legitimate financial problems.
If you come across something with “guaranteed profits” with no effort, it’s not trading; it is most certainly gambling. So, stay alert, stay cautious, and invest wisely.
