Published on: November 3, 2025, 07:07h.
Updated on: November 3, 2025, 07:07h.
- Polymarket set to offer competitive trading fees compared to rival Kalshi
- The permanence of the fee structure remains uncertain
- Polymarket plans to launch in the US by the end of November
The prediction markets platform Polymarket is preparing to engage in a fee competition with its rival Kalshi as it looks towards re-entering the US market, aimed for later this month.
According to the fee details shared on www.polymarketexchange.com, the platform will implement a minimal fee of just one basis point, which equates to $0.01 for event contracts, confirming a straightforward flat-fee approach. In contrast, Kalshi employs a different fee structure based on contract odds, leading to an average charge of approximately 1.2% per contract for retail users.
The longevity of Polymarket’s comparative low trading fees as an enticing factor to attract traders from Kalshi is still uncertain. It remains possible that the platform may adjust its transaction costs in the future.
“The company may periodically update its fee structure on the website, and participants are considered to be informed of any modifications published there,” as stated in the Polymarket Rulebook.
Recent reports suggest Polymarket is targeting a US relaunch by the end of the month to capitalize on the ongoing football season’s betting activities.
Polymarket: Harnessing Competitive Advantage?
Following regulatory challenges with the Commodities Futures Trading Commission (CFTC), Polymarket had to cease operations in the US, enabling Kalshi to dominate the prediction market landscape here.
However, that doesn’t preclude Polymarket from making a comeback. Competing on fees is a strategic move, echoing the principles of the Vanguard Effect observed in the exchange-traded funds (ETFs) sector. Although Vanguard entered the ETF arena later than others, its approach of lower fees has positioned it as a major player in the industry.
If Polymarket maintains the $0.01 fee per contract, it could significantly challenge Kalshi’s dominance, translating to only a penny for Polymarket users on 100 trades, versus $1.20 for Kalshi. Over time, these savings would benefit active retail traders.
Polymarket’s flat fee structure is likely to be appealing to traders compared to Kalshi’s tiered fee arrangements. For instance, Kalshi imposes a charge of 63 cents for 100 contracts at a price of 10 cents each, which escalates to $1.32 for 100 contracts priced at 25 cents, as shown in its fee guide.
Polymarket’s Diverse Revenue Streams
Valued recently between $9 billion and $10 billion, following a significant $2 billion investment from Intercontinental Exchange (NYSE: ICE), Polymarket generates revenue not only from user fees but also through various other channels.
These additional revenue sources include fees for market creators launching new markets on the platform, as well as income from data monetization and liquidity provisioning.