Which is cheaper, Kalshi or Polymarket?

It depends on use case. Polymarket has no per-trade fees but has onramp/offramp friction. Kalshi charges per-contract fees but has free ACH transfers. For active traders keeping funds on platform, Polymarket is cheaper. For retail traders depositing and withdrawing, costs are roughly comparable.

What does Kalshi charge per trade?

Kalshi charges roughly $0.07 per contract round trip on most markets, with reduced fees on lower-priced contracts and high-volume markets.

Does Polymarket charge any fees?

Polymarket has no per-trade fees but earns margin through other mechanisms and charges small fees on USD-to-USDC onramps (typically 1–3% for cards) and offramps.

Are deposits free on Kalshi?

ACH bank transfers are free. Wire transfers and debit card deposits incur small processing fees.

Is Kalshi cheaper than Polymarket?

On most contracts, yes — Kalshi's curved per-contract fee bottoms out well under a cent on low-price markets and caps in the low single-digit percent on high-price ones, while Polymarket takes a small maker/taker cut plus USDC network gas. For a typical NFL or NBA fill under $200, Kalshi is usually cheaper end-to-end for California traders.

Does Polymarket charge deposit or withdrawal fees?

Polymarket itself charges $0 for USDC deposits and withdrawals, but you pay Ethereum L2 gas on every on-chain move and any fiat off-ramp fees your card or bank imposes. Kalshi is fee-free on ACH deposits and withdrawals for California residents.

Do you pay taxes on Kalshi and Polymarket winnings in California?

Yes. Net profits from either platform are taxable as ordinary income federally, and California residents also owe state income tax. Kalshi issues an IRS Form 1099-MISC when annual net winnings cross $600; on Polymarket you export a CSV of on-chain trades and calculate the gain yourself.

Which has better spreads?

On highest-volume markets, both platforms run 1–2 cent spreads. Polymarket often has tighter spreads on crypto-native and political contracts; Kalshi often has tighter spreads on US sports and macro markets.

Are prediction markets legal in California?

Yes. CFTC-regulated event-contract platforms operate under federal commodities law, which preempts state gambling statutes. That makes Kalshi, Polymarket, Sleeper, Chalkboard, Novig, Rebet, and Crypto.com legal for California residents to use today — even though traditional online sportsbooks remain unavailable in the state.

Who regulates the platforms I am trading on?

The Commodity Futures Trading Commission (CFTC) — the same federal agency that regulates futures, options, and swaps. Platforms operate as Designated Contract Markets (DCMs) and must follow rules on disclosures, market integrity, customer protection, and segregation of customer funds.

Do I need to pay California state tax on my winnings?

Yes. Profits are taxable as either short-term capital gains or ordinary income at both the federal and California state level. There is no de minimis exemption. Some Kalshi contracts may qualify for Section 1256 60/40 treatment. Consult a CPA — this is not tax advice.

Is my money protected if a platform fails?

CFTC-regulated platforms are required to keep customer funds segregated from operational capital. That gives meaningful protection in the event of operator bankruptcy, but it is not the same as FDIC insurance. Only fund accounts with money you are prepared to lose.

What disclosures should I read before trading?

Read each platform's contract resolution rules carefully — they vary across venues for the same event. Also review our editorial Disclosure for how we earn revenue from affiliate partnerships and how that affects (and does not affect) our coverage.

What are the age and residency requirements?

You must be 21 or older and a US resident with a valid government ID. KYC verification is mandatory and typically completes in 5–60 minutes.

Guide·7 min read

Kalshi vs Polymarket Fees: Full 2026 Cost Breakdown

By Catie Di StefanoPublished April 21, 2026Updated July 15, 2026

Polymarket has no per-trade fees. Kalshi charges roughly $0.07 per round trip. But the all-in cost picture is different — here's the side-by-side that actually matters.

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Kalshi vs Polymarket Fees: Full 2026 Cost Breakdown

Guide

Frequently asked questions

Which is cheaper, Kalshi or Polymarket?: It depends on use case. Polymarket has no per-trade fees but has onramp/offramp friction. Kalshi charges per-contract fees but has free ACH transfers. For active traders keeping funds on platform, Polymarket is cheaper. For retail traders depositing and withdrawing, costs are roughly comparable.
What does Kalshi charge per trade?: Kalshi charges roughly $0.07 per contract round trip on most markets, with reduced fees on lower-priced contracts and high-volume markets.
Does Polymarket charge any fees?: Polymarket has no per-trade fees but earns margin through other mechanisms and charges small fees on USD-to-USDC onramps (typically 1–3% for cards) and offramps.
Are deposits free on Kalshi?: ACH bank transfers are free. Wire transfers and debit card deposits incur small processing fees.
Is Kalshi cheaper than Polymarket?: On most contracts, yes — Kalshi's curved per-contract fee bottoms out well under a cent on low-price markets and caps in the low single-digit percent on high-price ones, while Polymarket takes a small maker/taker cut plus USDC network gas. For a typical NFL or NBA fill under $200, Kalshi is usually cheaper end-to-end for California traders.
Does Polymarket charge deposit or withdrawal fees?: Polymarket itself charges $0 for USDC deposits and withdrawals, but you pay Ethereum L2 gas on every on-chain move and any fiat off-ramp fees your card or bank imposes. Kalshi is fee-free on ACH deposits and withdrawals for California residents.
Do you pay taxes on Kalshi and Polymarket winnings in California?: Yes. Net profits from either platform are taxable as ordinary income federally, and California residents also owe state income tax. Kalshi issues an IRS Form 1099-MISC when annual net winnings cross $600; on Polymarket you export a CSV of on-chain trades and calculate the gain yourself.
Which has better spreads?: On highest-volume markets, both platforms run 1–2 cent spreads. Polymarket often has tighter spreads on crypto-native and political contracts; Kalshi often has tighter spreads on US sports and macro markets.

Legal & Compliance

Legality, regulation, and your protections

For full guardrails, see our Responsible Trading guide and our editorial Disclosure. This page is informational, not legal or tax advice.

Responsible Trading

Trading safely: the questions that matter

Is trading prediction markets the same as gambling?: No. Prediction markets are CFTC-regulated event contracts — financial derivatives, not casino games. That said, you can still lose every dollar you put in. Treat capital at risk as money you are prepared to lose.
How much should I trade with?: Only with money you can afford to lose without affecting rent, bills, or savings goals. A common rule of thumb: cap total prediction market exposure at 1–5% of your discretionary income.
What are the warning signs of problem trading?: Trading to recover losses, hiding activity from family, borrowing to fund deposits, missing work or sleep, or feeling unable to stop. If any of these apply, step away and call 1-800-GAMBLER.
Where can I get help in California?: Call the California Problem Gambling Helpline at 1-800-GAMBLER (free, confidential, 24/7) or visit ncpgambling.org. Most platforms also offer self-exclusion and deposit limit tools in account settings.
Can I set deposit or loss limits?: Yes. Kalshi, Polymarket, Sleeper, and Chalkboard all offer self-imposed deposit limits, loss limits, and cooling-off periods. Set them when you open the account, not after a bad week.

If you or someone you know needs help, call 1-800-GAMBLER or visit ncpgambling.org.

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