No one wants to be a palooka when trading sports prediction contracts on Polymarket. Therefore, it is important that folks understand how the Polymarket trading fees are calculated. Don’t stress, I have done the hard work for y’all!
This guide unpacks everything about the trading and non-trading fees on the site, including what to expect when even more future event prediction contracts (besides sports options) are available. Come tag along to get the scoop, and while you are at it, also make sure to dust off your calculators, as my Polymarket trading costs class is now in session!
The lowdown on Polymarket trading fees
Before getting to the calculation of Polymarket trading fees, let’s step back a bit and share a refresher of the platform in the US. Unless you have been living under a rock, you would know that Polymarket is legal in the US, as the platform is regulated by the Commodity Futures Trading Commission (CFTC) and operates as a Designated Contract Market (DCM).
However, like the well-oiled Seattle Seahawks offense, there is a bit of a twist when it comes to making prediction trades on Polymarket in the US. At the time of writing, y’all can only access Polymarket in the US with the dedicated iOS app. Also, FYI, currently, only sports prediction contracts are available, but other future event prediction contracts are in the pipeline, so keep an eye out for more deets.
Right, back to the fees, and Polymarket charges a taker fee for select markets. FYI, taker orders are market orders that fill immediately. Since only Polymarket sports prediction contracts are available right now for US prediction traders, here is the gist of how these costs work.
Polymarket trading fees formula (sports predictions):
- Fee = C x p x feeRate x (p x (1 - p))^exponent
Where:
- C - Number of prediction shares traded
- p - Price of the prediction trade
- feeRate - 0.03 taker rate fee for sports prediction
- exponent - 1
Using the above formula, here is the 411 on how the trading fee is calculated for a sports prediction contract price of $0.50 with 100 prediction contracts traded:
- Fee = 100 x 0.50 x 0.03 x (0.50 x (1 - 0.50))^1
- Fee = $0.38
Just a heads up, guys and gals, Polymarket adopts a dynamic fee scale, meaning that the fee is highest for prediction sports contract prices closer to $0.50. It’s not rocket science, folks, and in a nutshell, as market prices approach $0.01 and $0.99, the fees get smaller and smaller.
| Trading fees | Taker fee details |
| Future prediction event - sports outcomes | feeRate - $0.03 |
| Fee formula | C x p x feeRate x (p x (1-p))^1 |
The 411 on deposit, withdrawal and gas fees
Now that y’all know how Polymarket works regarding the trading fees, how about some deets on the non-trading costs? Well, since pUSD is the native token used on the platform, there are no deposit or withdrawal costs when funding your prediction market account using pUSD directly from the Polygon network.
However, if you are funding your prediction trading account using a different coin or network, such as third parties like MoonPay and Coinbase or withdrawing to a different network there will be gas fees. The exact gas fees are available directly from the specific network’s T&Cs, so don’t be a palooka, dial in and verify these deets before using the banking platform.
Discover a variety of markets at Polymarket
Learn about Polymarket exclusive features
Pros and cons: Polymarket fees
- Easy to understand fee formula
- CFTC-regulated DCM
- No charges for using the Polygon network
- Trading costs for sports prediction contracts
Verdict - Lock in and remember the Polymarket taker fees for sports prediction contracts
Like Usain Bolt at the final 50m of a 100m race, I have reached the business end of this guide. As you can see, folks, there are Polymarket trading charges for sports prediction positions, and it is straightforward to understand the fee formula. Don’t let anyone tell you that you need a PHD to get the gist of the fees. The formula is easy to understand, and what y’all need to remember is that there is a dynamic fee scale, so the further the market price is from $0.50, the lower the trading fee for that specific prediction contract.
Don’t forget, folks, for now, Polymarket only has sports future event prediction trading, so it will be interesting to see whether there will be different costs for other prediction future events once available, and whether there may also be zero charges for geopolitical future events prediction trades.
Right, before I head off back to making some prediction trades on the site, if y’all are ready to get started, the first step is to use the banners on this page to download the official iOS app. Thereafter, create a new account and start trading sports prediction positions.
Polymarket trading fees FAQs
Is Polymarket legal in the US?
Of course! Polymarket is regulated by the Commodity Futures Trading Commission and operates as a Designated Contract Market. The platform is available in the US and can be accessed via the official iOS app.
What future event prediction contracts can you trade?
For now, US prediction traders can only buy and sell future event sports contracts on Polymarket.
Are there any trading fees?
Polymarket charges a taker fee for sports prediction contracts. A dynamic fee scale is used, and the closer your sports prediction contract price is to $0.50, the higher the fee. When calculating the Polymarket payouts for a sports future event prediction position, you must account for the trading fee, using the formula: Fee = C x p x feeRate x (p x (1 - p))^exponent.
Do you have to pay non-trading costs as well?
Yes, there are gas fees for funding your account through third-party providers like Coinbase and MoonPay. A good strategy to reduce non-trading chargers on Polymarket is to make pUSD deposits on the Polygon network, since there are no fees.