as what the title says ^^
Is it legal for me to do a dictionary based on the collins dictionary?
If you created a dictionary using definitions provided by another dictionary, that would be illegal. If you wrote your own definitions for words, I suppose it'd be fine though.
You cannot breach copyright.
Each edition of the Collins or Oxford Dictionarys have full copyright which means you cannot copy any content.
By the way - the first Oxford Dictionary took 10 years to complete - good luck!!