Kalshi vs Polymarket: regulation, fees, markets & access compared

By Barry Healy EditorPublished: 11 October 2026, 07:37 EDT8 min read

Last reviewed 11 Oct 2026 · Editorial policy

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How the two largest prediction markets differ on US regulation, trading fees, funding, market mix & the legal challenges they face, based on regulator, company & research sources.

At a glance

This summary sets the two platforms side by side on the points the sources cover. Where a source is silent, the point is left out, not guessed.

Regulator: the CFTC says it issued an Order of Designation to KalshiEX LLC, granting it status as a designated contract market (DCM). Pew Research Center says Polymarket introduced the CFTC-regulated Polymarket US in late 2025, & Pew refers separately to Polymarket’s unregulated international platform.

Access in the US: according to Bitcoin Magazine, users of Polymarket’s intermediated trading platform can trade through futures commission merchants (FCMs). Polymarket’s documentation says it restricts order placement from certain locations.

Funding: according to Bitcoin Magazine, Polymarket accepts bitcoin deposits alongside stablecoins such as USDC & USDT. Polymarket says it charges no fee to deposit or withdraw USDC.

Fees: according to its fee documentation, Polymarket charges a taker fee on certain markets & never charges makers. Kalshi’s fee schedule is not covered by the sources used here.

Markets & volume: according to Pew Research Center’s analysis of data from The Block, sports is now the most traded topic on both platforms by a large margin. Pew’s category table, in millions, lists July 2026 sports volume at 31395.7 for Kalshi & 10618.5 for Polymarket.

Regulation

The CFTC announced on 4 November 2020 that it had issued an Order of Designation to KalshiEX LLC. The order granted KalshiEX status as a designated contract market under Section 5 of the Commodity Exchange Act & CFTC Regulation 38.3(a), according to the CFTC.

The CFTC said KalshiEX had shown it could meet the rules that apply to DCMs. The order requires KalshiEX to comply with the Commodity Exchange Act & all applicable CFTC regulations, as they may be amended or adopted. The CFTC describes KalshiEX as a limited liability company based in San Francisco & formed under Delaware law.

Polymarket took a different route. Bitcoin Magazine reports that Polymarket was barred in 2022 for running an unregistered derivatives exchange. It returned to the US after acquiring QCX, a regulated contract market & clearinghouse. The same report says Polymarket acquired derivatives exchange QCEX for $112 million, gaining a CFTC licence.

According to the same report, the CFTC issued Polymarket an Amended Order of Designation. The order allows Polymarket to operate an intermediated trading platform under the full set of federal rules for US exchanges. Bitcoin Magazine says Polymarket remains subject to the Commodity Exchange Act & CFTC regulations, including self-regulatory obligations.

Pew Research Center says Polymarket introduced the CFTC-regulated Polymarket US in late 2025. Pew also says Polymarket has faced legal trouble for allowing Americans to trade on its unregulated international platform.

Polymarket’s documentation says it restricts order placement from certain locations. Some places are fully blocked, so users can neither open nor close positions there. Others are close-only, so users can close existing positions but not open new ones. The extract used for this guide describes these groups but does not list which countries fall into each.

Fees

Polymarket’s fee documentation says only takers pay fees & makers are never charged. Fees are set by the protocol & applied when orders match, so traders do not add fee details to their orders.

Polymarket says the taker fee is calculated in USDC & varies with the share price. The fee is symmetric around a 50% probability. A trade at 30 cents incurs the same dollar fee as a trade at 70 cents.

The documentation gives fee tables for 100 shares, split into four groups. These are crypto; sports; finance, politics, mentions & tech; & economics, culture, weather & other. It states that the fee peaks at 50% probability, at $1.75, & falls symmetrically towards both extremes.

Polymarket says geopolitical & world events markets are fee-free & that it does not profit from trading on them. Taker fees fund a Maker Rebates Program, paid daily to market makers to encourage tighter spreads. Takers can also earn some fees back through a tiered Taker Rebate Program.

The sources used here do not set out Kalshi’s fee formula or category-level fee rates for Polymarket. A side-by-side worked example on 100 contracts is therefore not given.

Money in & out

Polymarket accepts direct bitcoin deposits alongside stablecoins such as USDC & USDT & other crypto, according to Bitcoin Magazine. The same report describes Kalshi as another major prediction market accepting bitcoin.

Bitcoin Magazine says the amended CFTC order lets Polymarket onboard brokerages & customers directly. Users can trade through FCMs & use traditional custody, reporting & market infrastructure.

Polymarket’s documentation says it charges no fee to deposit or withdraw USDC. It adds that intermediaries such as Coinbase or MoonPay may charge their own fees.

The sources do not describe Kalshi’s bank, card or wire funding options.

What you can trade

Pew Research Center found that combined monthly trading volume on Kalshi & Polymarket rose from $26 billion in May 2026 to $53 billion in July 2026. It attributes the rise mostly to sports, which it calls the most traded topic on both platforms by a large margin.

In June & July 2026, which Pew says coincided with the FIFA World Cup, sports trading topped $58 billion on Kalshi & neared $22 billion on Polymarket. Pew’s category table, in millions, gives Kalshi’s July 2026 volume as 31395.7 for sports, 169.2 for politics, 6101.1 for cryptocurrency & 2437.1 for other. For Polymarket in the same month it gives 10618.5 for sports, 726.8 for politics, 1154.1 for cryptocurrency & 391.0 for other.

The platforms differ outside sports. Pew says cryptocurrency was the second-most traded topic on Kalshi, totalling $6 billion in July 2026. Politics has averaged around $2 billion a month on Polymarket since the start of 2026, while on Kalshi it has stayed under $300 million.

Pew says Kalshi & Polymarket each had around 50% of total prediction market volume as recently as March 2026. Since then, trading has grown sharply on Kalshi & more modestly on Polymarket. Polymarket US’s share of Polymarket’s total volume rose from 4% in January 2026 to 39% in July 2026.

Spectrum News reports that Kalshi launched in 2021 & expanded into sports trading in 2025.

Legal fights

Both platforms face legal challenges in New York. Pew notes that some regulators have argued that sports contracts amount to offering sports betting nationwide, in breach of state & local gambling rules.

New York Governor Kathy Hochul & Attorney General Letitia James said the state had sued Kalshi, Spectrum News reports. The suit claims Kalshi lets users wager on sports, elections & cultural events without approval from the New York State Gaming Commission. It also alleges the platform preys on people under 21, the minimum age for mobile sports betting in New York.

The suit seeks to block Kalshi from operating in New York as an unlicensed gambling business. It also seeks forfeiture of alleged illegal profits, restitution for users & financial penalties. Spectrum News reports that US District Judge Analisa Torres refused Kalshi’s earlier request for an injunction against the state on July 8.

Kalshi called the lawsuit “political theater”, according to Spectrum News. It said in a statement: “States can’t just shut down a federally licensed exchange.”

New York’s Attorney General has also sued QCX LLC, doing business as Polymarket US, as an unlicensed gambling operation. The office says Polymarket launched in the US in December 2025 & that its markets are available to 18 to 20-year-olds.

The state asks the court to stop Polymarket US operating as an unlicensed gambling business in New York. It also seeks forfeiture of all illegal gains, restitution to users & fines equal to three times those gains. According to the same release, the Attorney General sued Coinbase & Gemini in April 2026 for running illegal gambling platforms, & in July 2026 the Attorney General & Governor Hochul announced a lawsuit against Kalshi.

Which suits whom

There is no single answer, & this guide offers information, not advice. The differences in the sources concern the legal route each platform uses in the US, how money moves, how fees are charged & which topics carry the most volume.

Location matters first. Polymarket’s documentation says it restricts order placement from certain locations, & New York is suing both platforms over whether their markets are unlicensed gambling under state law. That position applies to New York as of the 2026 filings & may change through the courts.

Fees & market mix also differ in the sources. Polymarket’s documentation says its taker fee varies with the share price & that geopolitical & world events markets are fee-free. Outside sports, Pew says cryptocurrency was the second-most traded topic on Kalshi in July 2026, while politics trading has averaged around $2 billion a month on Polymarket since the start of 2026.

Questions

Is Kalshi regulated in the US?

The CFTC announced on 4 November 2020 that it had issued an Order of Designation to KalshiEX LLC, granting it status as a designated contract market under the Commodity Exchange Act. According to Spectrum News, Kalshi said in a statement: “States can’t just shut down a federally licensed exchange.” New York has nonetheless sued Kalshi, alleging it runs unlicensed gambling under state law.

Is Polymarket legal in the US?

Bitcoin Magazine reports that Polymarket was barred in 2022 & returned to the US after acquiring QCX, a regulated contract market & clearinghouse. According to the same report, a CFTC Amended Order of Designation allows Polymarket to operate an intermediated trading platform, with users trading through futures commission merchants. New York’s Attorney General has sued QCX LLC, doing business as Polymarket US, as an unlicensed gambling operation.

Does Polymarket charge trading fees?

According to Polymarket’s fee documentation, it charges takers a fee on certain markets, & makers are never charged. Geopolitical & world events markets are fee-free, & Polymarket charges no fee to deposit or withdraw USDC.

What do people trade most on Kalshi & Polymarket?

Sports. Pew Research Center calls sports the most traded topic on both platforms by a large margin. Pew says sports trading topped $58 billion on Kalshi & neared $22 billion on Polymarket in June & July 2026.

Sources

Sources checked 11 October 2026. Information only. 18+.

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