Learn how prediction market fees work across six cost categories. See a $100 trade walkthrough showing total costs on Kalshi, Polymarket, and more.
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Prediction market fees vary by more than 1,000x between the cheapest and most expensive platforms, and the stated trading fee is only part of what you’ll actually pay.
That gap matters because the prediction market industry has no standard fee structure. Kalshi uses a variable formula tied to contract probability. Polymarket charges nothing on most global trades but applies a 0.10% taker fee on its US exchange. FanDuel Predicts layers a CME exchange fee on top of a 2% payout fee. Every platform prices differently, and none of them make the full picture easy to find.
This guide breaks prediction market fees into six categories so you can calculate the real cost of any trade, on any platform, before you place it. We walk through a $100 trade from deposit to withdrawal and show exactly where your money goes at each step. If you’re coming from sports betting, you’ll also find a direct translation between PM fees and the vig you already understand.
Prediction market fees fall into six categories. Most platforms only advertise one (their trading fee), leaving the other five for you to discover through experience, or through your account statement.
| Fee Category | What It Is | Who Charges It |
|---|---|---|
| Trading Fee | Per-contract or percentage charge when you buy or sell a position | Kalshi (variable formula), Robinhood ($0.02 flat), FanDuel ($0.01/side CME + 2% payout) |
| Spread Cost | The gap between the best buy and sell price. You pay this implicitly every time you enter or exit a position | All platforms. Wider on illiquid markets. Typically 1 to 5 cents per contract |
| Settlement Fee | Charge applied when a contract resolves (your position pays out or expires worthless) | Most platforms charge $0. PredictIt charges 10% of gross profit |
| Deposit Fee | Cost to move money onto the platform | Free for ACH/bank transfers on most platforms. Debit cards: 2% on Kalshi. Card via MoonPay on Polymarket: 3.5 to 4.5% |
| Withdrawal Fee | Cost to move money off the platform and back to your bank or wallet | Free (ACH) on Kalshi and FanDuel. $2 for debit withdrawals on Kalshi. Free (USDC on Polygon) on Polymarket |
| Inactivity Fee | Charge for leaving an account dormant | None on major platforms (Kalshi, Polymarket, FanDuel Predicts). Some legacy platforms charge after 6 to 12 months |
Trading fees get the most attention, but they’re often the smallest line item. The spread, deposit method, and withdrawal path together can cost more than the trading fee itself. The next section puts exact dollar amounts on each category. 1Kalshi, “Fee Schedule,” kalshi.com, February 2026 2Polymarket, “Trading Fees,” docs.polymarket.com, March 2026 3CME Group, “Clearing Fees,” cmegroup.com, February 2026
The best way to understand prediction market fees is to follow a single trade from start to finish. Here’s what happens to $100 when you buy, hold, win, and withdraw on two major platforms.
Scenario: You deposit $100, buy YES contracts at $0.50 on a political market (200 contracts), the event resolves in your favor, and you withdraw your winnings.
| Stage | Kalshi (ACH deposit) | Polymarket US (USDC deposit) |
|---|---|---|
1. Deposit $100 | Free (ACH). Full $100 available after 3 to 5 business days | Free (USDC on Polygon). Available in minutes if you already hold USDC. Card via MoonPay: $3.50 to $4.50 fee |
2. Buy 200 contracts at $0.50 | Taker fee: round_up(0.07 x 200 x 0.50 x 0.50) = $3.50. You now hold 200 contracts, total outlay: $103.50 | Taker fee: 0.10% on premium = 200 x $0.50 x 0.001 = $0.10. Total outlay: $100.10 |
3. Spread cost (est. 3c) | If mid-market is $0.50 and you buy at $0.515 (half the 3c spread), implicit cost: 200 x $0.015 = $3.00 | Tighter spread (est. 1.5c). Implicit cost: 200 x $0.0075 = $1.50 |
4. Event resolves YES. 200 contracts pay $1.00 each | Settlement fee: $0. Gross payout: $200.00 | Settlement fee: $0. Gross payout: $200.00 |
5. Withdraw winnings | Free (ACH). Processed in approximately 4 hours to 2 business days | Free (USDC on Polygon). Processed in 2 to 5 minutes. Converting USDC to USD via exchange may add $1 to $3 |
Total Cost | Trading fee: $3.50 + Spread: ~$3.00 = approximately $6.50 total. Net profit: $93.50 on a $100 outlay (6.5% cost) | Trading fee: $0.10 + Spread: ~$1.50 + USDC conversion: ~$2.00 = approximately $3.60 total. Net profit: $96.40 on a $100 outlay (3.6% cost) |
The same winning trade costs $6.50 on one platform and $3.60 on another. The difference isn’t the trading fee (which is the number each platform advertises). It’s the spread and deposit method doing most of the work.
These are calculated examples based on published fee schedules and typical spread data. Actual costs vary by market liquidity, time of day, and position size. 4Kalshi, “Fee Schedule,” kalshi.com, February 2026. Fee formula: round_up(0.07 x C x P x (1-P)), capped at $0.02 per contract 5Polymarket US, “Fees & Hours,” polymarketexchange.com, March 2026. US taker fee: 0.10% on contract premium
The bid-ask spread is what you lose simply by entering and exiting a position. If the best buy price is $0.52 and the best sell price is $0.48, the spread is 4 cents. You pay half of it going in and half coming out.
On a 100-contract position, a 4-cent spread costs $4.00 round-trip. That’s more than Kalshi’s taker fee would be on the same trade. Spreads vary by platform and by market category. Political markets on Polymarket tend to be the tightest (1 to 2 cents) because volume is highest there. Niche markets, like weather or entertainment, can have spreads of 5 to 10 cents or more.
Spread is the cost of liquidity. If you’re using limit orders (posting a price and waiting for a fill), you can avoid paying the spread entirely and instead earn it. This is the maker/taker distinction: makers add liquidity to the order book and pay lower fees or earn rebates. Takers remove liquidity by accepting existing prices and pay the full spread plus the platform’s trading fee.
Expert Tip: Check the Spread Before the Fee
Before placing any trade, look at the order book depth, not just the headline price. A “0% fee” platform with a 5-cent spread costs more than a platform charging 2% with penny-wide quotes. The spread is visible on every platform’s order book. If you can’t see an order book, the platform is likely building the spread into its displayed price, and you’re paying it without knowing the exact amount. For more on reading order books, see our guide to order books and liquidity in prediction markets.
If you’re crossing over from sports betting, prediction market fees will feel familiar once you see them in the right frame. The vig (or juice) on a sportsbook line serves the same function as the total cost on a prediction market trade: it’s the house’s cut for facilitating the market.
A standard -110/-110 sportsbook line carries a built-in hold of about 4.55%. That’s the cost of participation baked into the odds. Prediction markets break that cost into visible components (trading fee, spread, deposit/withdrawal fees), which makes the total more transparent but harder to calculate at a glance.
| At a Glance | Sportsbook (-110 line) | Prediction Market ($0.50 contract) |
|---|---|---|
What you pay to participate | ~4.55% hold (built into the odds you see) | 2 to 6% total (trading fee + spread, varies by platform) |
Where the cost hides | In the odds. You bet $110 to win $100 | Split across fee categories. Some visible, some (spread) implicit |
Can you reduce it? | Line shopping across sportsbooks | Yes. Use limit orders to avoid spread. Choose free deposit methods. Compare platforms |
Key difference | Fixed per bet. Same vig on $10 or $10,000 | Variable. Fees shift based on contract probability, platform, and how you fund your account |
The key advantage for prediction market traders: you can reduce your fees. Sports bettors can line-shop, but the vig is structurally embedded. On prediction markets, switching from market orders to limit orders, choosing ACH over debit card deposits, and selecting the right platform for your trade size can cut your total cost by half or more. For a deeper dive into how sports betting skills transfer, see our sports bettor’s guide to prediction markets.
Fees affect every trade, but their impact on your returns depends on two variables: position size and hold time. A $20 position on a casual political market and a $2,000 position on a high-conviction economic trade have completely different fee economics.
Position Size | Fee Sensitivity | What to Prioritize | Platform Choice Impact |
|---|---|---|---|
Under $50 | Low | Convenience. Use whatever deposit method and platform is easiest | Minimal. $1 to $3 difference between platforms |
$50 to $500 | Moderate | Spread and deposit method. Avoid debit card deposit fees (2%) on larger amounts | Noticeable. $5 to $20 difference. Worth checking |
$500 to $5,000 | High | All fee categories. Use limit orders. Choose free deposit/withdrawal methods. Compare platform fee structures for your trade type | Significant. $20 to $80+. Platform choice matters |
Over $5,000 | Critical | Total cost modeling before entry. Consider slippage on large orders. Factor in capital lockup opportunity cost | Hundreds of dollars at stake. Full fee analysis required |
Hold time matters too. A contract you buy and sell within a day incurs fees twice (entry and exit) with minimal time for your position to generate returns. A contract you hold to resolution incurs entry fees once and avoids exit spread costs entirely, since settlement pays the full $1.00 or $0.00 with no spread.
Pro Tip: The Two-Trade Rule
If you plan to trade actively (buying and selling before resolution), double your fee estimate. You pay the spread and trading fee on entry, then again on exit. A contract that costs 3% to enter costs 6% round-trip. For active trading, platform fee structure matters more than it does for buy-and-hold positions. For a complete comparison of which platform is cheapest for your trading style, see our fees comparison across platforms.
Prediction market fees aren’t complicated once you see all six categories. Trading fees get the headlines, but the spread, deposit method, and withdrawal path often add more to your total cost. The $100 walkthrough above shows how the same winning trade can cost $6.50 on one platform and $3.60 on another, not because of the fee you see at checkout, but because of the fees you don’t.
Three steps to minimize what you pay: use ACH or crypto transfers instead of debit cards for deposits, place limit orders instead of market orders to avoid paying the spread, and match your platform to your position size. Casual traders under $50 can ignore most of this. Anyone trading $500 or more should calculate total cost before entry.
For a platform-by-platform fee comparison with tested data, see our complete fee comparison across all major platforms. To understand the costs that don’t appear on any fee schedule (slippage, capital lockup, tax implications), read our guide to the hidden costs of prediction market trading.