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Like sports betting, prediction markets have grown exponentially in popularity in a relatively short amount of time. While on the surface, it may look like they operate the same way, allowing a user to wager on an outcome, but there are some key differences.
One prediction exchange that includes sports is ProphetX. Instead of betting against a bookmaker who’s already baked in a house edge, you’re matched directly with another trader who believes the opposite thing you do. Users who predict correctly will get paid by those who slip up in their decision, and a live market price reflects what the public thinks will happen at a given moment.
It’s never too late in the sports calendar to start using ProphetX. New users can get started with the promo code TSN for a $75 prediction bonus.
Here’s everything new users need to know about ProphetX’s commission rate compared to other prediction markets.
MORE: Complete guide to trading on ProphetX
How do prediction market fees work?
For prediction markets, fees vary from platform to platform. On many prediction markets, users are subject to fees as soon as their pick is placed. On ProphetX, however, users are only subject to a 2% fee when their trade loses or settles. For example, if a user places $50 on a trade that misses, they lose only what they originally put down. If that pick wins to earn $100 in total, ProphetX would keep $2, and the user takes home $98 in profits.
Other platforms feature an up-front fee that users are required to pay every time they buy or sell a share. In this case, it doesn’t matter if a user wins or loses their trade. Near-even lines have the highest fees attached, while both highly-favored and longshots have minimal fees.
Another form of fee is a maker versus taker fee. Users who buy an already-existing order will pay a standard upfront fee, whereas a user generating their own trading line will pay a smaller fee, if at all.
What is a prediction market transfer fee
There are three main types of transfer fees in prediction markets:
- Deposits: Many platforms let a user deposit for free if they use standard bank transfers (ACH). However, if they want their funds instantly via credit, debit or digital wallets, they are required to pay a payment processing fee.
- Withdrawals: When a user wins money and wishes to send it back to their bank account, some platforms take a flat cut or percentage of their payout.
- Gas fees: For crypto-based prediction markets (such as Polymarket), moving funds in and out of a user’s wallet requires processing on a blockchain network.
When do prediction markets charge trading fees?
Trading fees differ across different prediction market platforms. ProphetX only charges trading fees after a user’s trade wins; if the line doesn’t hit, users aren’t subject to a fee.
Other markets, such as Polymarket, charge their users fees as soon as their order fills in the order book. It is deducted upfront as an addition to their purchase cost or taken directly out of their cash balance.
What is the difference between a commission and a transaction fee?
The main difference between commission and transaction fees is when the user is charged for their trade. Commission fees are essentially paying for the service. This is a fee paid to a platform for facilitating a deal. These are usually calculated as a percentage of a user’s profit or a percentage of the overall trade value.
Transaction fees feature users paying a rate for the trading process. This is a flat or formula-based processing charge applied every time trades are moved or processed. It is charged on entry or exit, regardless of whether you end up making a profit, losing money, or breaking even.
ProphetX vs. Kalshi vs. Polymarket vs. OG.com fees
| Platform | Fee structure | When you’re charged | Losing trade |
| ProphetX | Commission on net profits | Market settlement (only for winning payouts) | Stake only (no fee) |
| Kalshi | Price-weighted formula | Order execution (upfront when order is matched) | Stake + upfront fee |
| Polymarket | Maker-taker tiering | Order execution (upfront on entry/exit) | Stake + upfront fee |
| OG.com | Spread-based | Order execution (included in buy/sell price) | Stake + upfront drag |
Which prediction market has the lowest fees?
ProphetX has the lowest fees when trading on sports. The platform uses a profit-commission model rather than charging on order execution like many major prediction markets.
Users are only charged a 2% commission when their trade wins. If a trade loses or settles at a loss, a ProphetX user pays $0 in fees.
ProphetX fees: How the 2% commission works
ProphetX’s 2% commission is straightforward: a user only pays a fee if they walk away with a net profit on a market. If your trade loses, breaks even, or gets canceled, your fee is $0.
For example, if a user wagers $100 on a line that is marketed at 50% and wins, they’ll pay $2 on their profits. Therefore, their original $100 wager would be returned, along with $98 in profits. If that same $100 wager loses, they would only lose what they originally placed, with no commission.
How much does ProphetX charge on a winning trade?
ProphetX has a fixed commission rate of 2%. This is ONLY applied to winning trades, so users only lose their original stake on trades that don’t hit.
Does ProphetX charge fees when you lose?
No. Users are not subject to additional fees if their trade loses.
ProphetX only keeps a user’s original wager on losing plays.
Does ProphetX charge fees on parlays?
Nope! Parlays on ProphetX are without fee for a win or loss.
Like any platform, a parlay that loses still means a user’s original stake is lost. However, a winning play isn’t subject to the standard 2% fee for a win.
Are there deposit or withdrawal fees on ProphetX?
Unlike other sports wagering options, ProphetX has NO fees for both deposits and withdrawals. This is the same for every deposit/withdrawal method on the platform.
Can ProphetX fees be reduced?
Yes. If a user creates their own market line that the ProphetX audience wagers on, they may receive fee rebates, reduced fees, incentive payments or other benefits, per the platform’s rulebook.
Kalshi fees: How transaction fees work
On Kalshi, transaction fees work differently than traditional sportsbooks or other sports prediction markets. Instead of charging a flat $0.01 per share or a cut inside fixed odds, Kalshi uses a price-weighted probability formula that is immediately implemented when users place their trade.
Kalshi calculates fees per contract using the implied probability of the contract’s price (ranging from $0.01 to $0.99). Trades that are close to a 50-50 probability have the highest fees, while extreme favorites or underdogs have low fees attached to them.
MORE: How does Kalshi work?
How much does Kalshi charge per contract?
In most cases, Kalshi charges between $0.00 and $0.07 depending on the contract’s price. There are no fees on contracts priced below $0.02 or above $0.98.
How are Kalshi transaction fees calculated?
Kalshi’s transaction fees follow a simple formula: Price × (1−Price).
This means that 50-cent contracts (50% odds) call for the highest fee. Users typically pay around $1.75 per 100 contracts ($0.0175 per contract). Longshots (around 10 cents) or big favorites (around 90 cents) are priced around 63 cents per 100 contracts ($0.0063 per contract). Near certainties, at either one cent or $0.99, are equipped with a very minimal fee (under $0.07 per 100 contracts).
Does Kalshi charge you fees when you lose?
No, Kalshi does not charge an additional fee when a user loses. Outside of the original transaction fee, users aren’t subject to additional fees for a loss.
What are Kalshi maker fees?
A Kalshi maker fee is a discounted fee a user gets for placing a limit order that stays on the order book instead of executing immediately.
By creating an offer and waiting for another trader to come along and match it, a user “makes” liquidity for the market. Kalshi rewards said maker with a 75% discount compared to standard instant trades.
Are Kalshi fees different for certain markets?
Yes, Kalshi has differing fees across specific markets. Standard markets, such as politics and pop culture, have a standard taker fee (peaks at ~$1.75 / 100 contracts @ 50¢), along with a 75% maker discount.
High-volume financial and sports markets include a standard taker fee and a mandatory maker fee on resting limit orders. Finally, markets involving crypto prices or award shows can have minimal or no fees at all.
Polymarket fees: How transaction fees work
On Polymarket, transaction fees boil down to how a user trades (limit orders or instant orders) and what topic they trade. Polymarket uses an order book, meaning a user’s trade is either adding liquidity (“making”) or removing it (“taking”).
If a user places a limit order (setting a custom price and waiting on the order book for someone else to match with them), you pay $0 in trading fees. Polymarket can reward these “makers” with daily cash rebates funded by taker fees. If a user clicks “Buy” or “Sell” to match instantly with an existing price, they pay a small taker fee depending on the market’s probability.
MORE: How does Polymarket work?
Does Polymarket charge trading fees?
Yes, Polymarket charges trading fees, but they depend on the order type and the market category.
Users who take an already-existing market order pay a taker’s fee. Fee rates per market category can be found on Polymarket’s website.
How are Polymarket transaction fees calculated?
Polymarket transaction fees can be calculated with the following formula:
- fee = # of shares traded × feeRate × share price × (1 – price)
Fee rates can be found here.
Does Polymarket charge maker fees?
No. Regardless of market category, there are no maker fees across the board.
Are Polymarket fees different by market?
Polymarket’s fees are dependent on which market a user trades on. Here is a table breaking down each taker fee per market:
| Category | Taker fee (in cents) |
| Crypto | 0.07 |
| Sports | 0.05 |
| Economics | 0.05 |
| Culture | 0.05 |
| Weather | 0.05 |
| Other/General | 0.05 |
| Finance | 0.04 |
| Politics | 0.04 |
| Geopolitics | 0.00 |
What other costs should Polymarket users consider?
While Polymarket does not charge deposit/withdrawl fees, users who use third-party services such as MoonPay or debit/credit cards to convert USD to USDC will usually pay a 1% to 4.5% processing fee.
Converting USDC back into cash on a crypto exchange (such as Coinbase) and sending it via bank wire or instant debit transfer can cost between $1 and $15+ depending on the speed and exchange policy.
OG.com fees: How transaction fees work
OG.com features transaction fees on a simple flat-rate model rather than formulas or percentage cuts on profit. OG.com charges a flat trading fee of $0.02 per contract, and selling that contract early will result in another two-cent fee per share.
Users who hold their contract until the event’s completion don’t have an additional fee to pay.
Does OG.com charge trading fees?
Yes, OG.com charges a flat fee of two cents per contract. Users who sell their contract before they settle will also pay an additional two cents per contract.
How are OG.com transaction fees calculated?
OG.com’s transaction fees are quite simple. Users who open or close a market pay two cents per contract, according to the platform.
Does OG.com charge maker fees?
Yes, orders that rest in the order book and are filled later are charged the maker fee, per OG.com.
Are OG.com fees different by market?
No, unlike Kalshi and Polymarket, OG.com applies the same flat fee model across its categories (sports, politics, pop culture, and macroeconomics).
What other costs should OG.com users consider?
While bank transfers via ACH and wire transfers are free on OG.com, using certain payment methods includes upfront percentage fees. Here’s a breakdown per deposit method:
| Payment method | Fee |
| Debit card/Apple Pay/Google Pay | 1.49% per deposit |
| Venmo/PayPal | 1.99% per deposit |
Prediction market fees vs. sportsbook fees
While prediction markets and sportsbooks allow users to predict if an outcome will occur, there are some differences regarding fees.
Sportsbooks rarely charge explicit, separate transactional fees. Instead, they shade their fee inside the odds. On a standard 50/50 toss-up, instead of offering +100 (an even payout), sportsbooks set the line at −110 on both sides. This margin helps the sportsbook pay out as little as possible.
Prediction markets, on the other hand, operate like a stock market. Odds reflect true market-implied probabilities, and the platform charges explicit, transparent fees. How much you pay depends on whether the exchange uses an entry/execution fee or a settlement commission.
