Prediction Market Fees Explained: Every Platform Compared (2026)
The prediction market industry has no standard fee structure. Costs range from essentially zero to over 20% of profits depending on which platform you use and how you trade. At scale, fee structures determine whether a trading strategy is profitable or not.
Fee Comparison at a Glance
| Platform | Fee model | 50-cent contract cost | Sports | Crypto needed |
|---|---|---|---|---|
| Kalshi | Formula | ~$1.75 per $100 | ✓ | ✗ |
| Polymarket | Formula | ~$1.25 per $100 | ✓ | ✓ |
| Robinhood | $0.02/contract | ~$4.00 per $100 | ✓ | ✗ |
| DraftKings | Spread-based | ~$2-3 per $100 | ✓ | ✗ |
| FanDuel | 2% on payout | ~$2.00 per $100 | ✓ | ✗ |
| Novig | Zero vig | $0 | ✓ (sports only) | ✗ |
Fees per $100 position at even-money odds. Estimates based on standard taker orders. Last updated August 6, 2026.
How Prediction Market Fees Work
Formula-based (Kalshi): Fees scale with contract price and quantity. Kalshi's formula is: 0.07 × contracts × price × (1 − price). Fees peak around 50-cent contracts.
Per-contract flat fee (Robinhood, OG.com, ForecastEx): A fixed dollar amount per contract regardless of probability. Robinhood charges $0.02 per contract.
Percentage of profit (Polymarket Global, PredictIt): You pay nothing to trade, but the platform takes a percentage when you win. PredictIt's combined drag exceeds 14%.
Payout-based (FanDuel Predicts): A 2% fee applied to your potential payout at checkout.
Kalshi
Kalshi formula: 0.07 × contracts × price × (1 − price) 50¢ contract × 100 contracts: 0.07 × 100 × 0.50 × 0.50 = $1.75 (3.5%) 20¢ contract × 100 contracts: 0.07 × 100 × 0.20 × 0.80 = $1.12 90¢ contract × 100 contracts: 0.07 × 100 × 0.90 × 0.10 = $0.63
Key insight: Kalshi is most expensive at even-money markets and cheapest on extreme-probability contracts. Maker fees (limit orders) are lower than taker fees (market orders).
Robinhood Predictions
Robinhood charges $0.02 per contract regardless of price ($0.01 commission + $0.01 exchange fee passed to Kalshi).
50¢ × 100 contracts ($50 position): $2.00 (4%) 10¢ × 100 contracts ($10 position): $2.00 (20%)
Robinhood's flat fee is expensive for small, low-probability positions but competitive for higher-probability trades. See Robinhood review →
DraftKings Predictions
DraftKings uses a spread-based fee model embedded in the bid-ask spread. At scale ($50,000+ positions), embedded spread costs exceed $1,000. Most suitable for casual or moderate trading volumes. See DraftKings review →
FanDuel Predicts
FanDuel charges a 2% fee on the potential payout at checkout. For a $500 position at 50 cents, the fee is $10 (net payout $490). Straightforward and transparent. See FanDuel review →
Fanatics Markets
Fanatics uses a spread-based model powered by Crypto.com's CDNA infrastructure. Fee transparency is currently limited. See Fanatics review →
The Fee Comparison at Scale
| Platform | Fee Model | $10K profit nets |
| --- | --- | --- |
| Robinhood | $0.02/contract | ~$9,800 |
| Kalshi (avg) | Formula-based | ~$8,500-9,000 |
| FanDuel Predicts | 2% payout | ~$9,800 |
| DraftKings | Spread-based | ~$9,700-9,900 |
| PredictIt | 10% + 5% withdrawal | ~$8,550 |
Which Platform Is Cheapest for Your Trading Style
- Casual trader ($20-$200/trade): Robinhood or DraftKings
- Active sports trader ($500-$5,000/trade): Kalshi direct
- Macro/political trader: Kalshi (cheapest on near-certainty contracts)
- High-volume professional ($5,000+/trade): Kalshi with limit orders, or Polymarket US
- First-time trader: Robinhood for zero friction