Colour Trading – How Fascinating This Word Sounds!
The term “Colour Trading” has recently gained a lot of popularity, especially among those who are looking to get rich quickly. But the truth is, most people don’t really understand what colour trading is all about.
So, what exactly is Colour Trading?
Is it legal in India?
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These are some of the most common questions asked by people who are curious about colour trading. Many search the internet hoping to find the truth but often end up with no clear answers.
If you’re one of them, then you’re in luck – because you’ve found the right article.
In this post, we’ll discuss every important aspect of colour trading, and most importantly, we’ll expose the reality behind it – including whether it’s a genuine opportunity or just another scam.
So, let’s get started!
What is Colour Trading Apps?
Colour trading is a strategy-based bidding game, in which there are mostly two colors: green or red. Green represents “buy,” and red represents “sold.” The user has to choose one color and bid on it. If the chosen color wins, they will earn the money from the bidding.
In countries like India, where people want to earn quick money, such apps have become quite popular. Now that you know about colour trading apps or games, let’s move forward to discuss whether it is legal.
How Do Colour Trading Apps Work?
Colour trading apps are prediction-based games where players place a bid on a colour. If the chosen colour is selected, the player wins the bid and receives double the bidding amount.
The app runs a short countdown timer. During this time, users choose one colour and place their bid (users can start with ₹10 and go up to any amount).
If the user wins, they get double the bidding amount. But if they lose, their money is gone.
At first glance, it looks like a game of skill and strategy but most of these apps don’t reveal how the results are actually decided. This raises serious doubts about transparency and fairness.
These apps attract users by showing fake earnings, fake screenshots, and manipulated results. After seeing these, many users get attracted and start playing the game only to keep losing again and again. They fall for the illusion of winning and end up investing more money, eventually losing it all.
Why Are Colour Trading Apps So Popular in India?
In India, many people are constantly looking for ways to make money easily. They search for every possible shortcut to achieve this goal of earning quick money. And that’s exactly where these colour trading apps take advantage of their mindset. They promote themselves as “easy money-making” apps, claiming that with just one click, users can become rich and people fall right into this trap.
The ones who usually fall into this trap are:
- Students who believe it’s the best app for side income
- Youngsters who are attracted to online games and money-making trends
- Job seekers or people with low income looking for extra earnings
These apps attract users with flashy ads on social media, where they show fake earnings and claim users can earn ₹2000 to ₹5000 daily. Seeing this, people get tempted and start investing money.
But in reality, it’s all a scam. The promise of easy money is just an illusion. At first, the app may let users win small amounts to build trust. But as soon as they place a big bid thinking the app is genuine, they lose everything. They keep trying again and again, hoping to recover their losses but they never win.
Eventually, when users realize that the app is not genuine, it’s already too late. And in an attempt to recover their losses, they download similar apps and repeat the same mistake. This loop keeps going on endlessly.
Is Colour Trading Apps Legal in India?
It’s difficult to give a definite answer to this. In India, skill-based games are allowed, but these colour trading apps or games are completely based on luck. That’s why they fall under the category of gambling, and since gambling is banned in India, these apps can also be considered illegal.
These apps are neither regulated by SEBI nor by any government authority. They operate in a legal grey area. When it comes to online gambling, the rules vary from state to state. States like Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Odisha have already banned online gambling. Other states are also starting to take action against such apps.
Legal Reference:
The Public Gambling Act, 1867 – under this Act, gambling is prohibited in some parts of India. This Act mainly targets physical gambling houses, not online gambling.
This Act applies to those states that haven’t created their own separate gambling laws.
Note: These types of apps are not available on the Google Play Store or any official app platforms. People usually download them through third-party websites. If you lose money in such apps, it is almost impossible to recover your funds because these apps are not legally recognized.
Real-Life Colour Trading Scam Cases in India
1. Madhya Pradesh Cybersecurity Researcher Uncovers ₹59 Crore Scam (2024)
A cybersecurity researcher uncovered a massive ₹59 crore fraud where 64,306 people were scammed through colour prediction and lottery-style games. The scam was promoted heavily through Instagram ads and operated using a Chinese open-source framework.
Source: Mid-Day News Report
2. Hisar Online Gaming App Fraud – ₹300 Crore Transactions (2022)
In Hisar, police arrested a gang responsible for a ₹300 crore online betting scam. The group was running illegal colour prediction apps like RXCE and Mantrimaal, cheating people by luring them into fake betting games.
Source: The Tribune News Report
3. Jaipur Police Arrests 30 in Online Betting Scam (2025)
Jaipur police exposed a ₹30 crore scam involving online astrology and betting platforms. A total of 30 people were arrested. The scammers used social media platforms to deceive users and promote fake money-making schemes.
Source: The Times of India News Report
4. Guwahati VIP Mall Scam Targeting Children (2024)
On June 7, 2024, a complaint was filed against the Guwahati-based app “VIP Mall.” The app featured a colour prediction game that allegedly manipulated children into investing money. The complaint stated that the app scammed users out of lakhs of rupees by targeting minors and misleading them through the game.
Source: consumercomplaintscourt.com – Complaint Against Guwahati VIP Mall
5. RedGreenClub Scam – ₹2 Lakh Fraud (2021)
On October 15, 2021, a user filed a complaint against a website called “RedGreenClub.” The user claimed that the app allowed them to win small amounts in the beginning to gain trust. However, as soon as they placed a higher bet, they lost everything. The total loss amounted to ₹2 lakh, and the app was accused of manipulating results to scam users.
Source: consumercomplaintscourt.com – Complaint Against RedGreenClub
Why Are These Scams Hard to Catch?
- These apps are not available on the Play Store and are usually downloaded through third-party websites.
- They frequently change their domain names, making them difficult to track.
- Most of their activity and promotion take place on Telegram, which makes it harder to catch them.
- Since most victims do not file complaints, public data about these scams is limited or unavailable.
- Scammers use fake identities and shell companies, making it extremely difficult to trace them.
Conclusion: The Choice Is Yours
Colour trading apps are not trading platforms — they are gambling apps that are not regulated by any government authority.
No one really knows how these apps choose the winners.
At first, they let you win small amounts. But as you get addicted and start placing bigger bets, the app ensures you lose everything.
But there’s one thing you should always remember:
Whether you bet a small amount or a large one — it is still your hard-earned money, and losing it in one go is no joke.
Now you know how these apps work and how they scam people.
From here on, the choice is yours.
Will you play such games just to make quick money — or will you work hard and earn it the right way?
The decision is entirely up to you.
Note: If you ever get scammed by these types of apps and don’t know what to do, you can file a complaint on the official website www.cybercrime.gov.in or call the Cyber Crime Helpline at 1930.
FAQs (Frequently Asked Questions)
1. Which types of trading are legal in India?
Equity trading, commodity trading, and forex trading are legal in India. These trading activities are regulated by specific guidelines and regulations set by the government.
2. What is colour trading?
Colour trading is a bidding game with two colors: green (buy) and red (sold). Users place a bid on one color, and if it wins, they earn the bidding amount.