Platform Comparison · Updated 2026
Kalshi vs Polymarket: Complete Comparison
Kalshi and Polymarket are the two most prominent prediction market platforms in the world, but they differ fundamentally in regulation, access, and target users. This guide breaks down every key dimension to help you decide which platform is right for your needs.
Kalshi
CFTC RegulatedBest for US residents who want regulated, legally compliant access to prediction markets with USD deposits and investor protections.
- +Fully legal for US residents
- +USD deposits via bank transfer
- +Strong economic data markets
- −Lower liquidity than Polymarket on some markets
- −KYC verification required
Polymarket
Crypto · Most LiquidBest for international traders and crypto-native users who want maximum liquidity and a wider range of global event markets.
- +Highest liquidity globally
- +Wide range of global markets
- +Transparent on-chain settlement
- −Restricted for US residents
- −Requires crypto wallet and USDC
Side-by-Side Comparison
| Feature | Kalshi | Polymarket |
|---|---|---|
| Founded | 2018 (public: 2021) | 2020 |
| Regulation | CFTC Designated Contract Market (DCM) | Unregulated (Polygon blockchain) |
| US Legal Access | Yes — fully legal for US residents | No — restricted by ToS; enforcement risk |
| Settlement Currency | USD (via bank transfer / ACH) | USDC stablecoin (Polygon network) |
| Deposit Method | Bank transfer, debit card | Crypto wallet (USDC), debit card (limited) |
| Market Types | Economic data, elections, weather, sports, entertainment | Politics, crypto, sports, entertainment, world events |
| Liquidity (major markets) | Good — growing rapidly since 2022 | Excellent — industry leading for top markets |
| Fees | ~7¢ per contract side (varies by market) | 2% fee on winnings |
| Minimum Trade | 1 contract (~$0.01 to $1 depending on price) | ~$1 minimum order |
| Mobile App | Yes (iOS and Android) | Yes (iOS and Android) |
| Customer Support | Email, with regulatory escalation path | Email / Discord |
| Fund Protections | Regulated — segregated customer funds | Blockchain-only — smart contract risk |
| KYC Required | Yes (for US regulatory compliance) | Limited — basic email verification |
Key Differences Explained
1. Regulation and Legal Status
This is the most consequential difference. Kalshi holds a CFTC Designated Contract Market (DCM) license — making it one of only a handful of prediction markets in the world operating under formal financial regulation. This means customer funds are segregated, the platform has undergone rigorous regulatory review, and US residents trade with the same legal protections afforded by other CFTC-regulated exchanges. Polymarket, by contrast, operates on blockchain infrastructure designed to be censorship-resistant and is not registered with any US financial regulator. While this gives Polymarket global accessibility, it exposes US users to enforcement risk and provides no regulatory protections for customer funds.
2. Liquidity and Market Depth
Polymarket has historically dominated in liquidity for major political and global event markets. During the 2024 US election cycle, Polymarket hosted over $500 million in open interest on the presidential race — a figure that dwarfed any other prediction market. This liquidity depth means tighter spreads and better execution for large trades. Kalshi has been growing rapidly and often has superior liquidity for US-specific economic data markets (Fed decisions, CPI, jobs reports) where its regulated status attracts institutional and professional traders. For retail-sized trades under $1,000, both platforms typically offer adequate execution quality.
3. Settlement and Deposits
Kalshi uses USD and allows deposits via bank transfer (ACH) or debit card — a familiar experience for anyone who has used a traditional brokerage. There's no need to acquire cryptocurrency or set up a Web3 wallet. Polymarket requires USDC stablecoin on the Polygon network, meaning users must first acquire crypto and either use Polymarket's embedded wallet or connect an external wallet. For users unfamiliar with crypto infrastructure, Kalshi's UX is significantly more accessible. Polymarket has introduced on-ramp solutions that simplify USDC acquisition, but the process remains more complex than a traditional bank transfer.
4. Market Catalog
Polymarket offers a broader global market catalog with stronger coverage of international political events, crypto-related outcomes, and entertainment. Its open market creation philosophy (with community proposals) allows niche questions that Kalshi would never list. Kalshi's catalog is more curated and US-focused, with particular strength in economic data events (CPI, unemployment, GDP), weather (hurricane landfalls, temperature records), and US political events. Kalshi's regulated status actually enables some market types — like economic data derivatives with legitimate hedging use cases — that might be harder to justify on an unregulated platform from a compliance perspective.
5. Fee Structure
Kalshi charges a flat per-contract transaction fee (approximately 7¢ per side, varying by market). This is paid at trade execution regardless of outcome. Polymarket charges 2% of winnings — meaning there's no cost on losing trades, but profitable trades are more expensive for larger positions. For a winning $1,000 trade, Polymarket would charge $20 while Kalshi's fee would depend on contract count and price. Generally, Kalshi's fee structure favors larger positions and traders who win frequently, while Polymarket's 2% fee is less punishing for small, casual trades that often lose.
Which Should You Choose?
If...
You are a US resident
Use Kalshi
Kalshi is the only safe, legal option for US residents. Polymarket's ToS explicitly restricts US users and the CFTC has taken enforcement interest in the platform's US activities.
If...
You are outside the US
Use Polymarket
International traders will find Polymarket's liquidity, market variety, and crypto-native UX superior. USDC settlement is convenient if you already hold crypto.
If...
You want to hedge macro exposure
Use Kalshi
Kalshi's economic data markets (Fed decisions, CPI, jobs reports) are purpose-built for hedging and attract professional money seeking correlated outcomes.
If...
You want the highest liquidity
Use Polymarket
For major political markets, Polymarket's open interest often exceeds Kalshi's by 10-50x. If you're trading six-figure positions, Polymarket's depth is important.
If...
You're new to prediction markets
Use Kalshi
Kalshi's bank-transfer deposits, USD settlement, and familiar brokerage-like UX make it far more accessible than Polymarket's crypto-native setup for beginners.
If...
You follow crypto markets
Use Polymarket
If you already hold USDC or are comfortable with DeFi, Polymarket's crypto-native infrastructure makes it a natural fit. It also has the deepest crypto event markets.
Frequently Asked Questions
Which is better for US residents — Kalshi or Polymarket?
For US residents, Kalshi is clearly the better option from a legal and regulatory standpoint. Polymarket's terms of service restrict US users, and there is real enforcement risk. Kalshi is fully legal, holds a CFTC license, and offers USD deposits via bank transfer. The tradeoff is that Polymarket currently has higher liquidity on some individual markets.
Is Polymarket or Kalshi more liquid?
For major political and global markets, Polymarket generally has higher liquidity and tighter spreads, thanks to its larger global user base and history of hosting high-profile election markets. Kalshi has been growing its liquidity substantially and often leads in US-specific economic markets like Fed rate decisions. For most retail-sized trades, both platforms offer adequate liquidity.
Can you use Polymarket from the US legally?
No. Polymarket's terms of service prohibit use by US residents, and the CFTC has investigated Polymarket's CEO over alleged US user access. Using a VPN to circumvent this restriction carries legal risk. US residents should use Kalshi, which holds a proper CFTC license.
What fees does Kalshi charge vs Polymarket?
Kalshi charges approximately 7¢ per contract side, which can be higher or lower than Polymarket's 2% profit fee depending on position size and outcome. For winning trades, Polymarket's 2% fee scales with profit size, while Kalshi's flat per-contract fee is proportionally cheaper for larger positions. For losing trades, Polymarket charges nothing while Kalshi's trade fee is paid at execution regardless of outcome.
Do Kalshi and Polymarket have the same markets?
There is overlap in election and sports markets, but significant differences in market catalogs. Polymarket has more global event markets and broader coverage of crypto, international politics, and entertainment. Kalshi focuses on US economic data (CPI, jobs report, Fed decisions), US elections, weather events, and mainstream sports. Both platforms have been expanding their catalogs aggressively.
Is Polymarket or Kalshi more accurate?
Both platforms show good calibration in liquid markets. Polymarket has more historical data for academic analysis and has been cited in studies showing its political market prices are well-calibrated. Kalshi's markets are newer but show similar calibration properties for economic data questions where ground truth is clear. For any given event, the more liquid market will generally be more accurate.
What happened with Kalshi's election markets?
Kalshi won a landmark federal court decision in 2024 that allowed it to offer election event contracts after the CFTC attempted to block them. The D.C. Circuit Court of Appeals ruled that the CFTC's order blocking Kalshi's election contracts was arbitrary and capricious. This decision was significant for the prediction market industry, establishing that regulated US platforms can legally offer election event contracts.