Key Moments:
- Polymarket is preparing to launch in the US with trading fees set at $0.01 per event contract.
- There is uncertainty regarding whether Polymarket’s fee structure will remain in place long term.
- Kalshi’s average fee for retail traders currently stands at 1.2% per contract.
Polymarket’s US Relaunch and Fee Strategy
Polymarket plans to re-enter the US prediction market by late November, offering sharply reduced trading fees. According to its website, the firm will charge a flat fee of just $0.01 per event contract. By contrast, rival platform Kalshi charges fees based on contract odds, averaging 1.2% per trade.
Fee Flexibility and Market Impact
Polymarket has not committed to keeping its lower fee model in place indefinitely. The company retains the ability to adjust transaction costs as needed, with changes to be communicated via updates posted on its website. According to the Polymarket Rulebook, any new fee schedule posted online automatically serves as public notice.
Market Competition and Potential for Savings
After previously being barred from US operations following a regulatory issue with the Commodities Futures Trading Commission (CFTC), Polymarket aims to regain market share from Kalshi, which currently leads in US prediction market volume. By significantly undercutting Kalshi’s fees, Polymarket is using a playbook familiar in other financial sectors. Should the $0.01 per contract fee be maintained, retail traders could see substantial long-term cost advantages: 100 trades would cost about $0.01 on Polymarket versus $1.20 on Kalshi.
Besides averaging 1.2% fees, Kalshi charges on a sliding scale depending on contract price, with fees such as 63 cents for 100 contracts priced at 10 cents each, and $1.32 for 100 contracts priced at 25 cents, as per the platform’s fee schedule. Polymarket’s flat-fee model could appeal to high-volume and cost-conscious traders as a result.
Diversified Revenue Sources
Polymarket has recently been valued between $9 billion and $10 billion following a $2 billion investment from Intercontinental Exchange (NYSE: ICE). In addition to user trading fees, Polymarket generates revenue from creation fees for launching new markets, as well as through monetizing data and liquidity provisioning.
| Platform | Average Fee per Contract | Fee Structure |
|---|---|---|
| Polymarket | $0.01 | Flat fee per contract |
| Kalshi | 1.2% | Fee based on contract odds (sliding scale) |
- Author
Daniel Williams
