Every few months, a new online money-making trend takes over social media.
These platforms promise instant profits with little or no effort. The latest of these is called colour trading.
It is a game where users predict colours and double their money in minutes.
But with so many people calling it the next easy income opportunity, one question deserves quick attention: is color trading safe, or just another scam?
What is Color Trading?
At first glance, color trading appears simple. Users need to sign up, pick a colour (red, green, or violet), and place a bet on which colour will appear next.
If the prediction matches, users win double the money invested.
Sounds fun, right?
But that’s exactly how they trap you. Genuine trading involves studying market trends, price movements, and financial instruments.
Colour trading has no connection to real markets.
It is purely based on chance, and this is why many people start asking, is Color Trading gambling? Once they realise how random the outcome really is.
Is Color Trading Legal in India?
As per Indian law, any activity resembling gambling without authorisation falls under the Public Gambling Act of 1867.
Since colour trading also depends on predictions and chances, it qualifies as legal gambling.
These platforms operate outside India’s regulatory framework. They often vanish, leaving users with no refund and no support.
SEBI and cybercrime departments have already issued warnings appealing to citizens to stay away from such unlicensed, unverified platforms.
If colour trading were safe or legitimate, it would’ve been promoted by a recognised financial authority, which it isn’t.
Is Color Trading Safe in India?
When asked, “Is color trading safe?”, here’s the reality most people realise too late.
The app initially gave users small amounts as wins to build trust.
Once they put in a larger amount, everything changed. Suddenly, the predictions failed, the withdrawal didn’t process, and the account verification got stuck forever.
Here are the biggest risks involved:
- Color trading apps are not registered or recognised by SEBI, RBI, or any other financial regulator in India.
- It is a form of gambling which is presented as trading. They rely on luck, not on market performance or analysis.
- Many victims have reported receiving messages and scam calls after registering.
- The results are manipulated to ensure users lose over time.
It is a trap that is designed to make users believe that they are learning trading, whereas they are being tricked into betting.
Color Trading Scam Complaints
Various users have lost lakhs chasing fake promises of instant wealth. Emotional turmoil, anxiety, regret, and stress often hit harder than the financial loss.
Have a look at these real color trading scams:
Case 1: Balaji (Chennai)
- Received a text message promoting a colour-prediction app.
- Lost ₹1.73 lakh placing bets on the platform.
- Filed a complaint at the Adyar Cyber Crime Police Station.
- Claims he was mocked and ridiculed by the police for falling victim to the scam.
- Police collected UPI transaction details but made no progress in the investigation.
Case 2: M. Rafiq (Bengaluru)
- Found an Instagram link promoting a colour-prediction app with “10% guaranteed returns.”
- He was guided by a WhatsApp contact who helped him install the app.
- Started with a ₹10,000 bet, which the app falsely showed doubling to ₹20,000.
- Encouraged by fake winnings, he invested ₹5.5 lakh in total.
- App displayed a balance of ₹7.67 lakh, but blocked all withdrawal attempts.
- Realised the wins were manipulated to make him deposit more money.
Case 3: Hyderabad Case
- In 2020, Hyderabad police uncovered a massive ₹1,600-crore colour prediction scam.
- Four individuals were arrested, including a Chinese national involved in the operation.
- Investigators found that the scam network was laundering money to Singapore-based accounts.
- The case was escalated and is now under scrutiny by the Enforcement Directorate (ED).
- This bust revealed the large-scale, organised nature of colour-prediction fraud across India.
How to Report Trading Scams?
If you have lost money to a color trading app, you should take these steps immediately:
- You should file a complaint in Cyber Crime.
- You should visit your local police station and file an FIR.
- Remember to keep all evidence, such as screenshots, payment records, and chat histories. It can be used as a record for your money recovery.
- You must inform your bank to monitor suspicious transactions. If possible, block all the transactions.
Need Help?
In some cases, legal and consumer rights organisations can guide victims through the complaint process. They can help in recovering funds or prevent further fraud.
We understand that it becomes very frustrating when all our hard-earned money just vanishes in seconds.
In case you are confused about how to report such a colour trading scam online, register with us now.
Conclusion
To be clear, color trading is not safe. It is not trading, it is gambling.
It depicts itself as an easy way of making money, but easy money is risky. It is a scam wrapped in flashy graphics and fake influencer promotions.
The only people getting rich from these apps are their developers.
If you are genuinely interested in trading, you should choose SEBI-registered platforms so that your money is invested in a safe platform.
Stay cautious and be sceptical of “get-rich-quick” schemes.
