Opinion trading apps have become very popular over the past few years, enabling users to predict the results of future events, ranging from sports games to the stock markets, and make money if their predictions prove to be true.

But a recent alert by the Securities and Exchange Board of India (SEBI) has sent alarm bells ringing for both users and developers of these apps. On April 29, 2025, SEBI, in a press note, cautioned the public against trading on “Opinion Trading Platforms”, stating that the platforms are not registered or regulated by them.

This warning is important because it emphasizes the danger and brings attention to the importance of user caution in an emerging but unregulated environment.

What Are Opinion Trading Apps?

Opinion trading apps are platforms where users can make bets or predictions on the results of real-time future events. These can be elections, stock prices, or economic data. If a user’s forecast is correct, they receive a reward, usually in real money.

Although these apps are similar to trading sites, they do not entail the purchase or sale of actual financial instruments. Hence, their legality is a bit unclear under the legitimate financial laws.

Why SEBI Issued a Warning for Opinion Trading Apps

SEBI issued a warning against opinion trading apps as they operate without regulatory approval and may mislead users into believing they are engaging in legitimate investment activities. Engaging with these websites may be considered a violation of regulations.

Since none of the platforms providing opinion trading can qualify to be recognized stock exchange, and are neither registered nor regulated by SEBI, any trading of securities on them is illegal (in case some of the opinions traded qualify as securities, SEBI stated.

Many opinion trading apps use financial terms like “trading,” “profits,” “markets,” and “investments,” which can mislead users into believing they are engaging in regulated financial activities, similar to stock trading or mutual funds.

The top governing body warned that these apps may not follow rules meant to protect users, so people could lose their money and not be able to get it back through legal means. In some cases, SEBI said the apps wrongly claim they are legal or approved in India, even when they are not.

User Responsibility: What Should You Do?

Under the Public Gambling Act, 1867, any activity that involves staking money on uncertain outcomes and depends largely on chance can be classified as gambling, which is illegal in many Indian states. Since these apps allow users to predict and earn money based on event outcomes, they may fall within the scope of this Act—especially if they are found to be games of chance rather than skill.

Other than warning issued by SEBI, the users must play responsibility, and be cautious while selecting an opinion trading app. The following are the crucial steps that should be taken before indulging these apps –

1.   Check SEBI Registration Status

Before using any prediction or trading platform, check if it is SEBI registered. This information is available on the SEBI website in the public domain and is necessary to ensure that the platform is under regulatory supervision.

2.   Read the Terms & Conditions Carefully

Make sure you know what you are agreeing to. Many opinion trading apps have hidden terms that protect themselves, not you. They might limit how you can withdraw money, avoid taking responsibility for losses, or change how payouts work daily. Always read the fine print carefully.

3.   Understand the Nature of the App

Identify if the app is providing financial investment or just a gamified environment. Apps that pretend to be “trading” apps but act like gambling may risk you financially and legally.

4.   Check App Store Ratings & Reviews

Google Play Store or Apple App Store user reviews may provide you with information about other users’ experiences, particularly complaints regarding withdrawals, manipulation, or security concerns.

5.   Check the App’s Security Features

Ensure that the app employs strong security measures like two-factor authentication (2FA), data encryption, and secure payment processing. Poor security may compromise your personal and financial data.

Conclusion

The SEBI alert is a timely reminder that not all online platforms providing financial returns are trustworthy or regulated. While opinion trading apps can be entertaining and potentially profitable, they tend to exist in a grey area that is not regulated and lacks investor protection.

Users need to exercise due diligence, check the compliance status, and know the actual risks involved before joining. Being aware is your best protection against financial fraud and misleading practices.