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Prediction markets have exploded in popularity, transforming how people trade on future events. Whether you’re interested in political outcomes, sports results, or economic indicators, choosing the right platform is crucial. This guide compares the three major prediction market platforms—Polymarket, Kalshi, and PredictIt—across fees, features, accessibility, and performance to help you make an informed decision. For an overview of prediction markets, start with our complete guide to prediction markets.
Understanding the Three Major Platforms
The prediction market landscape has consolidated around three dominant players, each with distinct characteristics, regulatory approaches, and target audiences. Before diving into detailed comparisons, it’s important to understand what makes each platform unique.
Polymarket operates as a decentralized, blockchain-based prediction market using USDC stablecoins on the Polygon network. It requires no Know-Your-Customer (KYC) verification and allows instant onboarding via cryptocurrency wallets. This global platform hosts over 2,000 active markets spanning politics, sports, crypto, and economics.
Kalshi functions as a regulated US exchange approved by the Commodity Futures Trading Commission (CFTC). It requires mandatory identity verification for all participants and operates with strict position limits and institutional-grade security protocols. Kalshi specializes in economics, elections, sports, and climate-related markets.
PredictIt has recently transformed following CFTC approval in September 2025 as a designated contract market (DCM) and derivatives clearing organization (DCO). The platform serves 400,000 active US users and focuses primarily on political prediction markets, including presidential elections, congressional outcomes, and state-level events.
Fee Structure Comparison
Fees are often the most critical factor when choosing a prediction market platform, as they directly impact your profitability. Understanding the complete fee breakdown helps you calculate realistic returns.
Polymarket Fees
Polymarket employs a remarkably competitive fee structure that has disrupted traditional prediction markets. The platform charges effectively zero platform trading fees when using the Polygon network. Instead, users pay blockchain network fees (gas fees), which vary based on network congestion but typically remain minimal.
For its anticipated US launch, Polymarket has announced a revolutionary 0.01% fee structure—the lowest in the industry. To put this in perspective, on a $10,000 trade, you’d pay just $1 in fees. Additionally, Polymarket requires no deposit or withdrawal fees when using standard cryptocurrency transfers.
The platform’s fee advantage becomes even more apparent when using limit orders and trading in high-liquidity markets. Cost-conscious traders can minimize expenses by batching trades rather than executing frequent small transactions and by avoiding periods of high network congestion.
Kalshi Fees
Kalshi operates with a transparent, flat fee structure designed for US-regulated derivatives trading. The platform charges $0.01 per contract traded, regardless of contract value or trade size. Additionally, Kalshi imposes a $0.01 settlement fee on each contract.
For account funding, Kalshi charges 2% on debit card deposits but provides free ACH (Automated Clearing House) transfers for bank deposits. On average, these fees work out to approximately 1.2% of total contracts traded—over 100 times higher than Polymarket’s intended 0.01% fee.
This fee structure means that on $100 worth of contracts, you’d pay approximately $1.20 on Kalshi compared to 1 cent on Polymarket. For active traders, these differences compound significantly over time.
PredictIt Fees
PredictIt maintains the highest fees among major prediction platforms. The exchange charges a 10% fee on earnings that exceed your original investment, effectively creating a winner-take-most ecosystem. Additionally, users face a 5% withdrawal fee when cashing out profits.
This fee structure heavily disadvantages active traders but may appeal to casual participants making occasional bets. For example, if you invest $1,000 and profit $500, you’d owe $50 in earnings fees (10% of $500) plus 5% on withdrawal, totaling approximately $77.50 in fees.
PredictIt’s fee model fundamentally differs from its competitors, as it only charges on profits rather than on all trades. This approach creates psychological advantages for new traders but represents the highest overall cost structure across the three platforms.
Trading Features and Market Types
Beyond fees, each platform offers distinct trading features that affect user experience and trading capabilities.
Polymarket Features
Polymarket uses a peer-to-peer outcome shares model where users buy or sell shares representing market outcomes. The platform displays real-time buy/sell sliders that show current market pricing and allow instant execution.
The platform currently offers 2,000+ active markets across diverse categories: US and international politics, sports predictions, cryptocurrency movements, economic indicators, entertainment events, and niche topics. Market creation is remarkably fast—anyone can create a market in minutes, leading to extensive coverage across mainstream and specialized events.
Polymarket’s non-custodial settlement model means that outcomes are validated onchain, and users retain direct control of their USDC holdings. This approach enhances security and eliminates counterparty risk, as the platform never holds user funds in traditional accounts.
Kalshi Features
Kalshi operates an order-book based exchange where users place limit orders and market orders for specified contracts. The platform uses traditional derivative exchange mechanics familiar to stock and futures traders.
Kalshi focuses on carefully curated markets in four main categories: economics (inflation, unemployment, GDP growth), elections (presidential, congressional, state-level outcomes), sports (NFL, NBA, World Cup results), and climate (temperature records, extreme weather events). Each market undergoes rigorous review before launch.
The exchange enforces position limits ($25,000 maximum per market) designed to prevent manipulation and excessive leverage. Automated USD settlement provides instant cash access to profits, and segregated collateral protections ensure your funds remain secure even if Kalshi experiences operational issues.
PredictIt Features
PredictIt uses a continuous double auction mechanism where users buy and sell shares for each market outcome. The platform displays bid-ask spreads and allows both immediate execution and limit order placement.
Following its 2025 CFTC approval, PredictIt has expanded significantly beyond its original focus on political markets. The platform now covers US elections, congressional outcomes, state and local races, economic predictions, and international political events. Investment limits have been raised to $3,500 per contract, and the overall trader cap has been removed, allowing for greater market depth.
The platform exclusively serves United States citizens, maintaining strict geographic restrictions to comply with US regulatory requirements. Market curation emphasizes political prediction accuracy, with many markets resolving based on official election results or government agency announcements.
Accessibility and User Experience
Platform accessibility varies significantly based on your location, verification requirements, and technical comfort level.
Polymarket Accessibility
Polymarket offers the most frictionless onboarding experience. Users can deposit crypto directly into the platform using their existing wallet, typically taking less than five minutes. No identity verification is required, making Polymarket globally accessible except in specific restricted jurisdictions.
The platform works best for users comfortable with cryptocurrency, as deposits and withdrawals occur in USDC stablecoins on Polygon or Ethereum. For traditional finance users, Polymarket requires crypto acquisition through exchange onboarding beforehand, adding an extra step.
Mobile access is available through web browsers, though a dedicated mobile app is currently in development. The interface remains intuitive for both beginners and experienced traders.
Kalshi Accessibility
Kalshi requires full Know-Your-Customer (KYC) verification, including identity documents, address verification, and potentially additional information depending on trading volume. This process typically takes 24-48 hours.
The advantage is straightforward US dollar funding through ACH bank transfers and credit card deposits. No cryptocurrency knowledge is required, making Kalshi ideal for traditional finance users.
However, KYC requirements restrict access to US residents only, and the verification process eliminates anonymity. For privacy-conscious traders, this represents a significant trade-off compared to Polymarket.
PredictIt Accessibility
PredictIt similarly requires identity verification for US residents. However, the CFTC-regulated status and expanded market offering make it increasingly user-friendly for American traders.
The platform accepts US dollar deposits and provides straightforward account funding through ACH transfers. Like Kalshi, it eliminates cryptocurrency friction for traditional finance participants.
Geographic restrictions remain strict—only US citizens can access and trade on PredictIt. International traders seeking exposure to US political markets cannot use this platform.
Funding and Valuation
The financial backing of prediction market platforms provides insight into their stability and growth trajectory.
Polymarket secured substantial investment following successful market performance during recent election cycles. The platform raised $55 million in 2024 and $150 million in early 2025, with recent valuations approaching $9 billion following an ICE investment. These metrics demonstrate institutional confidence in the decentralized prediction market model.
Kalshi raised $300 million in Series D funding at a $5 billion valuation, demonstrating strong institutional support for regulated prediction derivatives. The platform has attracted venture capital backing from top-tier firms focused on fintech and derivatives infrastructure.
PredictIt’s valuation remained lower historically but has increased significantly following CFTC approval. The regulatory clarity and expanded market opportunity position PredictIt for growth as it emerges from its limited political prediction market origins.
Platform Comparison Table
| Feature | Polymarket | Kalshi | PredictIt |
|---|---|---|---|
| Trading Fees | 0.01% (US) | ~1.2% average | 10% on profits + 5% withdrawal |
| Network | Polygon/Ethereum (blockchain) | CFTC-regulated exchange | CFTC-designated contract market |
| Markets | 2,000+ | Economics, elections, sports, climate | Politics, elections, economics |
| KYC Required | No | Yes (US only) | Yes (US only) |
| Settlement | Onchain USDC | USD settlement | USD settlement |
| Position Limits | None | $25,000 per market | $3,500 per contract |
| Accessibility | Global (crypto wallets) | US residents | US residents |
| Market Creation | Fast (anyone) | Curated (platform review) | Curated (platform review) |
Pros and Cons Summary
Polymarket Pros and Cons
Pros: Lowest fees (0.01%), global accessibility, extensive market selection, fast market creation, no KYC verification, instant wallet-based onboarding, non-custodial design, large institutional backing, growing mainstream adoption.
Cons: Requires cryptocurrency knowledge, less regulated, potential slippage in illiquid markets, network dependency for gas fees, primarily used by technically savvy traders, limited traditional dollar funding options.
Kalshi Pros and Cons
Pros: CFTC-regulated safety, position limits prevent manipulation, segregated collateral protection, USD funding convenience, institutional-grade security, experienced derivatives traders prefer order-book model, clear market curation.
Cons: High fees (~1.2%), KYC requirements, US-only accessibility, slower onboarding process, smaller market selection, higher barrier to entry for casual traders, position limits restrict large traders.
PredictIt Pros and Cons
Pros: CFTC-regulated status, focused market specialization (politics), expanded markets following approval, 400,000 active user base, familiar continuous auction mechanics, US dollar simplicity, regulatory clarity.
Cons: Highest fee structure (10% + 5%), limited market categories beyond politics, strictly US-only access, smaller market depth than Polymarket, less developed platform infrastructure compared to competitors, limited international event coverage.
Legal Considerations
Before choosing a platform, understand the legal landscape in your jurisdiction. For detailed guidance, review our comprehensive legal guide to prediction markets.
Which Platform Should You Choose?
Selecting the right prediction market platform depends on your specific priorities, location, and trading style.
Choose Polymarket if: You’re a global trader, prefer minimal fees, want maximum market diversity, are comfortable with cryptocurrency, value privacy, or seek cutting-edge platform technology. Polymarket remains the clear winner for cost-conscious international traders seeking broad event coverage.
Choose Kalshi if: You’re a US resident, value institutional-grade security, prefer regulated derivatives trading, want to avoid cryptocurrency friction, appreciate curated market quality, or have substantial trading capital ($25,000+ per market). Kalshi serves traditional finance traders well.
Choose PredictIt if: You focus primarily on US political predictions, are a casual trader, prefer simpler interface mechanics, want CFTC regulation, or appreciate the platform’s specialized expertise in election forecasting. PredictIt’s regulatory clarity appeals to institutional participants.
The 2025 Prediction Market Landscape
The prediction market industry continues evolving rapidly. Polymarket’s anticipated US regulatory approach, Kalshi’s institutional expansion, and PredictIt’s newfound regulatory clarity suggest a maturing market with multiple viable platforms serving different user segments.
Fee structures will likely remain competitive, with Polymarket’s revolutionary 0.01% approach pressuring traditional platforms. Regulatory developments will continue shaping accessibility and market offerings across jurisdictions.
For serious prediction traders, maintaining accounts on multiple platforms provides portfolio diversification, access to different market types, and the flexibility to capitalize on platform-specific opportunities. Each platform’s unique characteristics make them complementary rather than purely competitive.
Conclusion
Polymarket, Kalshi, and PredictIt represent the three dominant forces in prediction markets as of 2025. Polymarket excels in cost efficiency and market diversity, Kalshi provides institutional-grade regulation and security, while PredictIt specializes in political market expertise and regulatory clarity.
Your optimal choice depends on your location, technical comfort level, trading capital, and specific event interests. As the prediction market industry continues maturing, these platforms will likely coexist, each serving specialized user segments while competing fiercely on fees, features, and market coverage.
Understanding each platform’s strengths and limitations ensures you can participate in prediction markets effectively, regardless of your preferred trading style or geographic location.
Ready to get started? Check out our how to start prediction market trading guide, explore proven trading strategies, understand how prediction markets work, or learn about prediction market accuracy versus other forecasting methods. For learning about market mechanics, read our guide to prediction market odds explained, explore political prediction markets for election forecasting, or return to our complete prediction markets guide for the full picture.