Hmm, are you sure you've got the latest version? Check for `+termtruecolor` when you run `vim --version`. Can you see something like that?

For reference I've got vim-7.4.1795 installed. Version string looks like this:

    VIM - Vi IMproved 7.4 (2013 Aug 10, compiled May  6 2016 11:18:41)

Also, if you're using tmux you'll need the latest version of that too.

Edit: Also, just remembered you might need to run brew update before brew install to get the latest installation formula.

It was all changed to termguicolors finally around 7.4.1809 . Example config:

    if has('termguicolors') && !has('gui_running')
       set termguicolors
    endif

:) Fantastic, that's the setting!

Hmm, I just installed vim-7.4.1868, so maybe they removed it again? The closest thing I have is `termguicolors`, which I believe was there before.