Kalshi vs Polymarket: Complete Comparison
Detailed comparison of Kalshi and Polymarket covering fees, markets, legality, features, and user experience. Find out which prediction market platform is right for you.
Quick Verdict
Choose Kalshi If:
- ✓ You're a US resident
- ✓ You want regulatory protection
- ✓ You prefer USD and traditional banking
- ✓ You need tax forms (1099)
Choose Polymarket If:
- ✓ You're outside the US
- ✓ You want more market variety
- ✓ You're comfortable with crypto
- ✓ You want lower trading fees
Overview: Two Different Approaches
Kalshi and Polymarket are the two dominant prediction market platforms, but they take fundamentally different approaches. Kalshi operates as a CFTC-regulated exchange in the United States, while Polymarket is a crypto-native platform operating globally (but not in the US).
This difference shapes everything from who can use each platform to how trades are settled, what markets are available, and how much regulatory protection users receive.
Complete Feature Comparison
| Feature | Kalshi | Polymarket |
|---|---|---|
| US Legal | ✓ Yes (CFTC regulated) | ✗ No (not available) |
| Currency | USD | USDC (cryptocurrency) |
| KYC Required | Yes (full ID verification) | No (optional for limits) |
| Deposit Methods | Bank transfer, debit card, wire | Crypto, credit card, Coinbase |
| Trading Fees | ~1-2% on trades | 0% maker, small taker fee |
| Market Variety | Medium (US-focused) | High (global events) |
| Trading Volume | $100M+ monthly | $1B+ monthly |
| Tax Reporting | ✓ 1099 forms provided | ✗ Self-reporting |
| Mobile Apps | ✓ iOS & Android | ✓ iOS & Android |
| API Access | ✓ Yes | ✓ Yes |
| Consumer Protection | High (regulated) | Medium (blockchain) |
| Founded | 2018 | 2020 |
Legal Status & Regulation
Kalshi: CFTC-Regulated
Kalshi is the first and only prediction market exchange regulated by the Commodity Futures Trading Commission (CFTC) in the United States. This means:
- Fully legal for US residents in most states
- Consumer funds protected under federal regulations
- Required to maintain capital reserves
- Subject to regular audits and compliance checks
- Must adhere to strict market manipulation rules
Polymarket: Offshore/Crypto
Polymarket operates outside US jurisdiction and uses blockchain technology:
- Not available to US residents
- Accessible in most other countries
- Transparent on-chain settlement
- No central point of failure for funds
- Less regulatory oversight but more censorship resistance
⚠️ US Users: Polymarket is Not an Option
If you're in the United States, Kalshi is your only legal choice for prediction market trading. Using Polymarket from the US may violate federal regulations and platform terms of service.
Markets & Liquidity
Polymarket: More Markets, Higher Volume
Polymarket dominates in trading volume, regularly exceeding $1 billion in monthly volume. The platform offers:
- Hundreds of active markets at any time
- Strong liquidity on popular markets
- Global events coverage
- Quick market creation for trending topics
- Crypto and blockchain-specific markets
Kalshi: Quality Over Quantity
Kalshi is more selective about markets but has been growing rapidly:
- Curated, well-researched markets
- Focus on US politics, economics, and weather
- Growing liquidity with each election cycle
- Economic indicators (CPI, Fed rates, etc.)
- Entertainment and awards shows
Fees Comparison
Polymarket Fees
- Maker fees: 0% (free)
- Taker fees: Small percentage
- Gas fees: Minimal on Polygon (~$0.01)
- Deposit/Withdrawal: Network fees only
Kalshi Fees
- Trading fees: ~1-2% on winning trades
- Deposit fees: Free for ACH, small fee for cards
- Withdrawal fees: Free for ACH
- No crypto conversion costs
💡 Hidden Cost: Crypto Conversion
While Polymarket has lower trading fees, you may incur costs converting USD to USDC and back. Factor this in when comparing total costs, especially for smaller trades.
User Experience
Getting Started
Kalshi
- 1. Sign up with email
- 2. Complete KYC (5-10 min)
- 3. Link bank account
- 4. Deposit USD
- 5. Start trading
Time: 1-3 days (KYC + bank)
Polymarket
- 1. Sign up with email/wallet
- 2. Deposit USDC or buy with card
- 3. Start trading
Time: 5-15 minutes
Trading Interface
Both platforms offer clean, intuitive interfaces:
- Kalshi: Traditional exchange feel, order books, price charts
- Polymarket: Modern crypto-style UI, quick betting, social features
Tax Implications
Kalshi Tax Reporting
Kalshi provides 1099 forms for US taxpayers, making tax reporting straightforward:
- Automatic 1099-B forms for trading activity
- Clear records of gains and losses
- Treated as Section 1256 contracts (60/40 tax treatment)
- Integration with tax software
Polymarket Tax Reporting
Polymarket doesn't provide tax forms—you're responsible for tracking and reporting:
- No automatic tax forms
- Must track transactions manually or use crypto tax software
- May be treated as crypto capital gains
- Tax treatment varies by jurisdiction
For detailed guidance, see our Prediction Market Tax Guide.
Which Platform Should You Use?
Use Kalshi If You:
- • Are a US resident (it's your only legal option)
- • Want regulatory protection and consumer safeguards
- • Prefer traditional banking and USD
- • Need tax forms for easy reporting
- • Are interested primarily in US events
- • Want FDIC-protected funds
Use Polymarket If You:
- • Live outside the United States
- • Want access to more markets and higher liquidity
- • Are comfortable with cryptocurrency
- • Prefer lower trading fees
- • Don't need KYC for privacy reasons
- • Want to trade on global events
Frequently Asked Questions
Which is better, Kalshi or Polymarket?
It depends on your situation. For US residents, Kalshi is the only legal option. For non-US traders seeking more markets and liquidity, Polymarket is typically preferred. Both are reputable platforms with different strengths.
Can US residents use Polymarket?
No, Polymarket is not available to US residents due to regulatory restrictions. US traders should use Kalshi, which is CFTC-regulated and fully legal.
Which has more markets, Kalshi or Polymarket?
Polymarket generally has more active markets, especially for international events and crypto-related topics. Kalshi focuses on US-centric markets and has stricter rules about what markets can be listed.
Which has lower fees?
Polymarket has lower trading fees overall, with zero maker fees. Kalshi charges fees on both sides of trades. However, Kalshi has no cryptocurrency conversion costs since it uses USD directly.
Which is more trustworthy?
Both are trustworthy but in different ways. Kalshi is CFTC-regulated with government oversight and consumer protections. Polymarket operates on blockchain with transparent, verifiable transactions but less regulatory protection.
Final Verdict
Both Kalshi and Polymarket are excellent prediction market platforms serving different audiences. The choice largely comes down to your location and preferences:
US residents: Use Kalshi—it's legal, regulated, and the only compliant option.
International users: Polymarket offers more markets, better liquidity, and lower fees.
Both platforms continue to grow and improve. As prediction markets gain mainstream adoption, we expect both to expand their offerings and compete for the growing user base.