Kalshi made history in 2020 as the first CFTC-regulated prediction market exchange in the United States, and it’s revolutionizing how Americans legally trade on real-world events. With 3,500+ active markets, 00+ million in 2024 funding at a $5 billion valuation, and groundbreaking 2024 election market approval, Kalshi now dominates the regulated prediction market space. This comprehensive guide covers how Kalshi works, its zero-fee maker structure, platform features, and honest comparison with Polymarket and PredictIt.
Whether you’re seeking regulatory safety, want zero-fee trading, or need institutional-grade tools, this guide provides everything to determine if Kalshi fits your trading strategy.
What Is Kalshi? The Regulated Prediction Market
Kalshi operates as a federally regulated financial exchange registered with the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM)—the first and only platform with this designation for event contracts. This regulatory status provides legal certainty for US traders, institutional-grade compliance, transparent oversight by federal regulators, and consumer protections standard in US financial markets.
Unlike decentralized platforms or gray-area operators, Kalshi functions like a traditional exchange (similar to CME or NASDAQ) but for event outcomes instead of stocks or commodities. The CFTC, established in 1974 and overseen by Congress, regulates Kalshi with the same rigor applied to major derivatives exchanges. This matters enormously: trading on Kalshi is explicitly legal for US residents with no regulatory ambiguity.
The platform’s scale reflects this legitimacy. Kalshi runs approximately 3,500 markets as of late 2024, processed billions in 2024 volume, and achieved a historic milestone by becoming the first fully regulated platform in over a century to offer legal election trading following a September 2024 federal appeals court ruling upholding Kalshi’s right to list political contracts.
Key Differentiators
🏛️ Federal Regulation: CFTC oversight provides legal certainty unavailable on unregulated platforms. Your funds are protected by US financial regulations, disputes are handled through established legal frameworks, and platform operations are transparent and audited.
💰 Zero Maker Fees: Limit orders providing liquidity incur no fees across most markets. This incentivizes deep order books and rewards patient traders.
💵 US Dollar Trading: No crypto required. Deposit via ACH bank transfer, trade in USD, withdraw to your bank account. Simple onboarding for non-crypto users.
🛠️ Institutional Quality Tools: Stop-loss orders, advanced analytics, portfolio management, mobile apps (iOS/Android), free API access, and TradingView integration for charting.
🌐 Market Variety: 3,500+ markets covering politics (elections, primaries, policy outcomes), economics (inflation, Fed rates, unemployment, GDP), sports (Super Bowl, college football, NBA, player props), entertainment (Spotify charts, Rotten Tomatoes scores, casting decisions), and weather/science (climate events, SpaceX launches).
🤝 Robinhood Partnership: March 2025 saw Robinhood launch a prediction markets hub powered by Kalshi, bringing event trading to Robinhood’s massive user base with integrated UI and seamless deposits.
🪙 Tokenized Contracts: December 2024 innovation allows buying/selling tokenized versions of Kalshi contracts on Solana blockchain, bridging traditional finance and crypto.
How Kalshi Works: Complete Trading Flow
Step 1: Sign Up (5 minutes)
Visit kalshi.com and create account with email. Complete KYC verification (required by CFTC regulations): provide name, address, date of birth, Social Security number, and government ID upload. Verification typically completes within minutes to 24 hours. This KYC requirement differs from decentralized platforms but provides regulatory compliance and consumer protection.
Step 2: Deposit Funds (Instant)
Fund account via free ACH bank transfer (no fees, 1-3 business days) or instant debit card deposit (small fee, immediate). No minimum deposit requirement. Recommended: start with $50-100 for multiple position sizes. All trading occurs in US dollars—no crypto wallet needed, no USDC conversions, no blockchain complexity.
Step 3: Browse Markets
Homepage shows trending markets by volume and activity. Category filters include Politics, Economics, Sports, and Entertainment. Each market displays current odds (YES/NO prices between $0.01-$0.99), total volume, expiration date, and resolution source. Market detail pages provide price charts, order book depth, volume history, and resolution criteria explanation.
Step 4: Place Trade
Example: “Will the Federal Reserve cut rates in December 2024?” shows YES at $0.82 (82% implied probability). You believe probability is actually 90%, so market underprices YES. Click “Buy YES” and choose amount: buy 100 contracts at $0.82 = $82 investment. Set limit order at $0.80 to get better price (waits for market to reach your price), or market order for instant execution at current $0.82. Order executes, and 100 YES contracts appear in portfolio.
Step 5: Resolution & Settlement
After event occurs (Fed announces decision December 10), outcome determined per resolution criteria (Fed official statement). Winning contracts paid $1.00 per contract. Losing contracts expire worthless. Your example: 100 YES contracts resolve to $100 if Fed cuts rates (profit $18 before taker fees), or $0 if Fed doesn’t cut (loss $82).
Settlements typically occur within hours of event conclusion. Funds available immediately for withdrawal via ACH or reinvestment in other markets.
Kalshi Fee Structure: Zero Maker, Low Taker
Official Fees (2024-2025)
Maker Fees (Limit Orders): $0 on most markets. Some high-volume sports and macro markets charge small maker fees under new July 2024 fee curve, but most markets remain completely free for makers.
Taker Fees (Market Orders): 0.07%-7% depending on contract probability. Contracts priced near $0.50 (50/50 odds) have lowest taker fees (~1-2%). Contracts near $0.01 or $0.99 (extreme probabilities) have highest taker fees (~7%).
Withdrawal Fees: $0 (free ACH withdrawal to bank)
Deposit Fees: $0 for ACH transfers (standard bank transfer)
Settlement Fees: $0
Membership Fees: $0
Real Cost Examples
Winning Trade with Maker Order (Zero Fees):
- Place limit order: buy 100 YES at $0.80 (waits for market to reach your price)
- Order fills, invest $80
- Market resolves YES, receive $100
- Maker fee: $0
- Net profit: $20 (25% return on $80)
Winning Trade with Taker Order:
- Market order: buy 100 YES at $0.82 (instant execution)
- Invest $82
- Market resolves YES, receive $100
- Taker fee: ~2% = $0.36 (assuming mid-range probability)
- Net profit: $17.64 (21.5% return on $82)
Comparison to Competitors:
Kalshi maker fees ($0) beat Polymarket’s 2% on all profits and drastically beat PredictIt’s 15% total. For $1,000 win: Kalshi maker = $1,000 kept, Kalshi taker = $980 kept, Polymarket = $980 kept, PredictIt = $850 kept.
Platform Features & Tools
Native Mobile Apps: Full-featured iOS and Android apps with push notifications for price alerts and market resolutions, portfolio tracking, real-time trading, and biometric login.
Advanced Order Types: Market, limit, and stop-loss orders. Set automatic exit points to lock profits or limit losses.
Analytics Dashboard: Track performance by market category, view win rate statistics, analyze profit/loss trends, and export trade history for tax reporting.
TradingView Integration: Professional charting tools with technical indicators, multiple timeframes, and drawing tools.
API Access: Free API for automated strategies, custom dashboards, historical data analysis, and real-time price monitoring.
Robinhood Integration: Trade Kalshi markets directly through Robinhood app (launched March 2025) with unified balance and simplified UI.
Educational Resources: Help center with trading guides, video tutorials, and market explanation articles.
| Pros | Cons |
|---|---|
| ✅ Only Fully Regulated US Option: CFTC oversight provides legal certainty and consumer protection. | ❌ KYC Required: Must provide personal information and verify identity—no anonymous trading. |
| ✅ Zero Maker Fees: Limit orders cost nothing on most markets—best fee structure for patient traders. | ❌ US Residents Only: Currently limited to United States (operates in 140 countries but primary focus is US). |
| ✅ Simplest Onboarding: No crypto wallet, no blockchain knowledge required. Bank transfer deposits like any financial account. | ❌ Lower Liquidity Than Polymarket: Smaller overall volume means wider spreads on some markets. |
| ✅ Institutional Quality: Professional tools (stop-loss, analytics, API) rival traditional finance platforms. | ❌ Taker Fees on Extreme Probabilities: Contracts near $0.01 or $0.99 carry 7% taker fees. |
| ✅ Customer Support: Real support team available via email/chat—rare in prediction markets. | ❌ Limited Crypto Integration: USD-only initially (tokenized Solana contracts are new 2024 feature). |
| ✅ Mobile Excellence: Best-in-class iOS/Android apps with full functionality. | |
| ✅ Broad Market Access: 3,500+ markets across all major categories. | |
| ✅ Robinhood Partnership: Access through familiar platform for existing Robinhood users. |
Best For / Not For
Best For: US traders wanting regulatory safety, beginners preferring USD over crypto, traders using limit orders (zero fees), those needing customer support, mobile-first traders, institutional users requiring compliance.
Not For: Non-US users (limited), crypto natives preferring decentralization, high-frequency taker traders (fees add up), users avoiding KYC.
Kalshi vs Polymarket vs PredictIt
| Feature | Kalshi | Polymarket | PredictIt |
|---|---|---|---|
| Regulation | CFTC-regulated | CFTC-approved (Nov 2025) | Academic exemption |
| Fees | 0% maker, 0.07-7% taker | 2% on profits | 15% total |
| Currency | USD | USDC | USD |
| KYC Required | Yes | No | Yes |
| Mobile App | ✅ Best-in-class | ✅ Good | iOS only |
| Customer Support | ✅ | ❌ | ✅ |
| Liquidity | High | Highest | Low |
| Best For | US compliance | Crypto users | Casual politics |
Getting Started Checklist
- Create Account (5 min): Visit kalshi.com, enter email, verify identity
- Deposit Funds (instant): ACH transfer or debit card, $50-100 to start
- Browse Markets: Explore categories, read resolution criteria
- Place First Trade: Start with $10-25, use limit orders for zero fees
- Track Performance: Monitor in portfolio dashboard, adjust strategy
FAQ
Is Kalshi legal? Yes, fully CFTC-regulated and legal for US residents.
What’s the minimum deposit? No minimum, but $50-100 recommended for meaningful positions.
Do I need crypto? No, trades in USD via bank transfer.
Are there withdrawal fees? No, free ACH withdrawal.
How quickly do markets settle? Usually hours after event, funds available immediately.
Can I use Robinhood? Yes, Kalshi markets available through Robinhood app as of March 2025.
Conclusion
Kalshi dominates regulated prediction markets with CFTC oversight, zero maker fees, 3,500+ markets, and institutional-grade tools. For US traders prioritizing regulatory safety and simplest USD onboarding, Kalshi is the clear choice. The 2024 election market approval and Robinhood partnership cement Kalshi’s position as the mainstream US prediction market platform.
Ready to start? Sign up at kalshi.com, deposit via bank transfer, and begin with limit orders for zero-fee trading. Compare platforms, learn trading strategies, or explore live markets.