Lowest Fee Prediction Markets

Fees eat into your prediction market returns more than most traders realize. A platform that charges 10% on profits can turn a consistently profitable strategy into a break-even one. Understanding the different fee models — and which platforms minimize your costs — is one of the most impactful decisions you can make as a trader.

How Prediction Market Fees Work

Prediction market platforms use several different fee structures, and comparing them requires looking at the full picture. Trading fees are charged when you buy or sell a contract. Settlement fees are charged when a market resolves and your position pays out. Withdrawal fees apply when you move money off the platform. And some platforms build their margin into the bid-ask spread rather than charging explicit fees.

Polymarket charges zero trading fees, zero settlement fees, and no withdrawal fees beyond the blockchain gas costs (which are minimal on Polygon). This makes it the cheapest platform for active traders by a significant margin. The only cost is the natural spread between bid and ask prices, which is tight on popular markets.

Robinhood also charges zero explicit fees on event contracts, consistent with its zero-commission model for stocks. There are no trading fees, no settlement fees, and no withdrawal fees. Robinhood makes money through order flow and interest on customer cash balances rather than direct trading charges.

The Middle Ground

Kalshi charges no trading fees on buy or sell orders, but does charge a $0.01 per contract settlement fee when markets resolve. On a $0.50 contract, that is a 2% cost on winning trades. For small positions on low-probability events (where contracts cost $0.05-0.10), the settlement fee is proportionally larger. Still, Kalshi's fee structure is transparent and predictable, and the total cost is low for most traders.

DraftKings Predictions and FanDuel Predicts generally incorporate their costs into the pricing structure rather than charging explicit per-trade fees, following models familiar from their sportsbook operations.

The Most Expensive Platform

PredictIt has the highest fee burden in the industry. It charges a 10% fee on all profits plus an additional 5% fee on all withdrawals. If you make $100 in profit and withdraw it, you pay $10 in profit fees and $4.50 in withdrawal fees — a 14.5% total cost. PredictIt also caps investment at $850 per contract, limiting your ability to scale profitable strategies. These fees reflect PredictIt's legacy structure and its operation under a CFTC no-action letter with specific constraints.

Minimizing Your Costs

For cost-conscious traders, Polymarket and Robinhood are the clear winners with zero-fee structures. Kalshi is the best option if you want CFTC regulation with minimal fees. Avoid PredictIt for high-volume trading unless you specifically need its unique political markets. And always factor in withdrawal fees and deposit methods — a "zero-fee" platform that charges 3% on credit card deposits is not actually free.