Polymarket vs Kalshi Comparison: Which is better?
Both Polymarket and Kalshi are great prediction markets, with a big user base.
The main difference you will find between these platforms is the fee structures they use and the countries/jurisdictions they restrict and allow.
Jump to the comparison table now
What is Polymarket?
Polymarket is a decentralized prediction market platform built on blockchain technology that allows users to trade/bet on the outcomes of real-world events.
These events you can bet on can be politics, sports, crypto, finance, and many topics related to public life.
Polymarket runs on the Polygon network for fast, low-cost transactions and leverages USDC as its primary currency.
What is Kalshi?
Kalshi is a CFTC-regulated event-based trading platform where users can buy “Yes” or “No” contracts on the outcomes of future events.
Similarly to Polymarket, these events can be from economic indicators and political developments to weather and business trends.
At the moment, Kalshi operates within the traditional U.S. financial regulatory framework, allowing only US users to place bets.
Comparison table of Polymarket vs Kalshi
| Feature | Polymarket | Kalshi |
| Platform Type | Decentralized prediction market on Polygon blockchain | CFTC-regulated event contract exchange |
| Regulatory Status | Unregulated (global access, but geofenced in some regions) | Fully regulated by the U.S. Commodity Futures Trading Commission (CFTC) |
| Trading Mechanism | Peer-to-peer trading of outcome shares | Centralized exchange matching buyers and sellers |
| Currency Used | USDC (stablecoin) | USD |
| Trading Fees | No trading fees for buying/selling outcome shares | More info below |
| Profit Fees | 2% fee on net profits from winning trades | More info below |
| Deposit/Withdrawal Fees | No fees from Polymarket; however, network (gas) fees apply | 2% for Debit card payments |
| Settlement Fees | None | 10% fee on net winnings upon contract settlement |
| Market Topics | Politics, crypto, sports, current events | Politics, economics, weather, business, and more |
| User Access | Restricted in many countries, more info below | Decentralized prediction market on the Polygon blockchain |
| Mobile Access | Web-based interface; no dedicated mobile app | Web-based interface; no dedicated mobile app |
| VPN usage | Not allowed | Not mentioned |
| Know Your Customer verification | Yes | Yes |
| US players allowed | No | Yes |
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Polymarket Odds & Fees
- No trading fees are charged.
- Charges no withdrawal fee when cashing out USDC.
- Built on Polygon: minimal network transaction fees.
- Considered the most cost-effective for all kinds of bettors.
Reliability:
- Operates in a regulatory gray area.
- No formal regulation poses risks such as market manipulation and legal uncertainty.
User Experience:
- Decentralized and blockchain-based.
- Uses USDC (crypto) for transactions, which may be a barrier for some.
- Offers a very broad and dynamic range of markets, including niche and humorous events.
- Capitalizes on social media trends to create betting events.
- High-volume and real-time data-driven.
Kalshi Odds & Fees
- Deposit/withdrawal fees vary by payment method: a 2% fee for debit cards for both deposits and withdrawals.
- Moderate cost structure compared to others.
1. Trading Fees (for all markets except certain listed ones):
- Charged only when an order is immediately matched (i.e., it takes liquidity).
- Not charged for unmatched orders that remain on the order book (unless part of Maker Fees).
- Formula:
fees = round up(0.07 × C × P × (1 – P))- C = number of contracts
- P = contract price in dollars (e.g., 50¢ = 0.5)
- round up = rounds to the next cent
Example:
- Buy 10 contracts at 0.60 (60¢):
fees = round up(0.07 × 10 × 0.6 × 0.4) = round up(0.168) = $0.17
2. Maker Fees (only for certain products listed by ticker):
- Charged for resting orders that are not immediately matched but later executed.
- Formula:
fees = round up(0.0025 × C) - No fee if the order is placed but canceled before being matched.
Example:
- Place 5 resting contracts that get filled:
fees = round up(0.0025 × 5) = round up(0.0125) = $0.02
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3. Rebates for Rounding:
- If rounding causes the total fee to exceed the actual rate by more than $10/month, the excess is reimbursed the next month.
Rebate Example:
- Place 5 orders × 5 contracts = 25 total contracts
- Actual fee: 25 × $0.0025 = $0.0625
- Charged due to rounding: 5 × round up(5 × $0.0025) = 5 × $0.02 = $0.10
- Rebate = $0.10 – $0.0625 = $0.0375, rounded up to $0.04
Reliability:
- Fully regulated by the CFTC (Commodity Futures Trading Commission).
- Provides strong legal assurance and reliability.
User Experience:
- Uses fiat currency, appealing to more traditional users.
- User-friendly interface.
- More limited market selection compared to Polymarket.
Countries restricted by Polymarket
Restricted countries and jurisdictions by Polymarket are the United States, Iran, Syria, Cuba, North Korea, and the Crimea, Donetsk, and Luhansk regions of Ukraine; the United States, United Kingdom, France, Ontario, Singapore, Poland, Thailand, or Taiwan.
Countries restricted by Kalshi
At the moment, Kalshi allows only US users to place bets/predictions. They do have a waitlist for international users in case they open the gates after the regulatory approval gets a green light.
Key features comparison of Kalshi vs Polymarket
After spending significant time analyzing both Polymarket and Kalshi, I’ve developed a clear understanding of the key strengths and differences between these two event prediction platforms.
While both offer “Yes/No” contracts priced between $0 and $1, their underlying philosophies, user experiences, and use cases vary widely. Below is a breakdown based on direct experience:
1. Regulation & Compliance
- Kalshi: As the only CFTC-regulated prediction market in the U.S., Kalshi provides peace of mind with full legal clarity. Setting up an account feels like opening one with a traditional brokerage, complete with KYC and funding via ACH or debit card. This makes it ideal for U.S.-based users who want regulatory certainty.
- Polymarket: In contrast, Polymarket operates in a decentralized, non-custodial environment on the Polygon blockchain. There’s no KYC, no account setup hurdles, just connect a betting friendly crypto wallet and start trading. While this offers global accessibility and privacy, it’s also not available to U.S. users due to regulatory restrictions.
Verdict:
Kalshi wins on regulatory trust; Polymarket wins on permissionless, global access.
2. Funding and Currency
- Kalshi: Trades are conducted in USD, and funding your account via traditional banking methods is straightforward. Great for people unfamiliar with crypto.
- Polymarket: Uses USDC, a stablecoin pegged to the U.S. dollar. Crypto-savvy users will appreciate the seamless wallet-based experience, but newcomers might face a learning curve.
Verdict:
Kalshi is easier for fiat users; Polymarket is better suited for crypto natives.
3. Market Topics and Breadth
- Polymarket: Truly global and current. I’ve traded on everything from the price of Bitcoin to geopolitical conflicts and even meme-related events. The community frequently suggests new markets, so the range is always timely and dynamic.
- Kalshi: Offers structured markets focused on U.S.-centric themes, elections, economic data, weather events, etc. It’s a great fit for those interested in more “serious” or institutional-level forecasting.
Verdict:
Polymarket offers broader and more reactive topics; Kalshi is more traditional and finance-focused.
4. Trading Experience
- Kalshi: The interface is clean and easy to navigate. Placing trades feels like using a stock trading app. Market depth is often high, thanks to institutional market makers like SIG. Fees are transparent, and order execution is reliable.
- Polymarket: Fast and cheap trades thanks to the Polygon blockchain. I’ve enjoyed near-instant execution and minimal transaction costs. That said, UX can be intimidating for non-crypto users, and gas fees (while low) still apply if you’re bridging funds.
Verdict:
Kalshi shines in simplicity and polish; Polymarket excels in speed and low-cost execution.
5. Hedging and Use Cases
- Kalshi: Beyond speculation, I’ve used Kalshi for strategic hedging, like placing trades on inflation or interest rate changes as a proxy for macro risk management. It’s clear the platform is aiming to become a serious financial tool.
- Polymarket: While Polymarket is more geared toward retail forecasting and informational markets, its open-ended nature means it captures events no other platform dares to list. It’s less about hedging, more about insight and rapid sentiment detection.
Verdict:
Kalshi is great for financial hedging; Polymarket thrives on community-driven information markets.
6. Community and Censorship Resistance
- Polymarket: One of my favorite features is its decentralized governance and censorship resistance. Markets are shaped by the community, not gatekeepers. Data is publicly accessible, making it a powerful resource for researchers and journalists.
- Kalshi: Operates within regulatory constraints, meaning some markets, especially controversial ones, might not be listed due to compliance concerns.
Verdict:
Polymarket leads in openness and censorship resistance; Kalshi provides regulatory security but with topic limitations.