Does Polymarket charge trading fees?
Polymarket charges a small taker fee that applies whenever you place a market order (to be executed immediately at market price). Limit orders add liquidity to the platform and, as such, do not attract any Polymarket fees.
In some markets, such as geopolitics, there is no specified taker fee rate, and such instruments can therefore be traded fee-free. Always check specific fee rates for each market to stay on top of any changes.
Another thing you’ll notice about the platform is that whether you have a Polymarket referral code or not, your deposits and withdrawals won’t be subject to any site fees. However, third parties, such as credit card providers, apply their own transaction fees.
How the Polymarket fee structure works
You know that if you want to execute a trade immediately, there’s a taker fee. As a trader, knowing how this fee structure works helps you calculate what you’ll be paying before jumping into any trade.
Polymarket has developed a unique trading fee calculation formula that weighs several factors. This formula is:
fee = C × feeRate × p × (1 - p)
In this Polymarket fee calculation formula, ‘C’ represents the number of shares you’d like to purchase. The fee rate is the prescribed taker fee rate for the market segment you wish to trade, while ‘p’ is the price per share for the event contract you are buying into.
Simply put, you will pay the most fees when you buy into a contract with shares priced at ¢0.50. This amount decreases as the share prices rise towards $1 and likewise when they drop towards zero.
Polymarket market category fee rates
If you’ve been wondering, is Polymarket available in Texas, and what are its fees, here’s the lowdown. The platform is available in various US states, but the fee structure remains the same across all of them. Trading geopolitical contracts is free, with the fee rising to 0.04 across finance, sports, tech, and mentions. Crypto prediction markets are the most expensive category to trade (0.07), while the rest have a fee rate of 0.05.
Here’s the full breakdown of Polymarket trading fees by market category.
| Market category | Taker fee rate | Maker rebate |
|---|---|---|
| Crypto | 0.07 | 20% |
| Sports | 0.05 | 15% |
| Culture | 0.05 | 25% |
| Weather | 0.05 | 25% |
| Economics | 0.05 | 25% |
| Other/General | 0.05 | 25% |
| Finance | 0.04 | 25% |
| Sports | 0.04 | 25% |
| Mentions | 0.04 | 25% |
| Tech | 0.04 | 25% |
| Geopolitics | 0 | N/A |
By now, you know that the taker fees charged by Polymarket fund the maker rebate program. Geopolitics, although currently exempt from taker fees, does not contribute to the maker rebate pool. If you happen to place limit orders in the sports category, you will benefit from the 15% maker rebate that rewards you for adding liquidity to the market. Crypto offers a 20% rebate, while the other categories give makers up to 25% of the taker fee as a rebate.
Using the fee calculation formula and the rates for the different categories, here’s an example of how much it would cost you in taker fees to buy 100 shares of a crypto contract at ¢50 per share.
fee = C × feeRate × p × (1 - p)
=100 x 0.07 x 0.50 x (1-0.50)
=100 x 0.07 x 0.50 x 0.50
=$1.75
Your position value will be $50 for 100 shares of the contract at $0.50/share. The Polymarket taker fee will be $1.75. Hence, the trade will cost $51.75 in total. The formula plus trading fees per category can help you determine the amount of fees you will pay for any contract, no matter the size. Simply replace the symbols with the actual share price and the number of shares you want to get.
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How to deposit and withdraw funds from Polymarket
Alongside the question,”Is Polymarket available in Florida?” You may also want to understand how Polymarket deposit and withdrawal fees work. The platform does not charge any Polymarket deposit fees. Your withdrawals are likewise free. However, other third-party costs are sure to creep into your budget, and they may arise from:
- Card and payment provider fees.
- Network (gas) fees.
- Exchange withdrawal fees when switching between multiple exchanges.
- Bid-ask spread.
Polymarket is built on crypto rails and uses USDC and pUSD as stablecoins on the platform, which may make you start wondering if Polymarket is accessible and safe in the US. Rest assured, it is a CFTC-regulated platform.
USDC is the crypto you send to fund your account and also the one you will take out when processing withdrawals. Polymarket converts this to pUSD, an ERC-20 token on Polygon that’s pegged 1:1 to USDC and is used as trading collateral on the platform.
Depositing to Polymarket
To fund your account, follow the steps below:
- Send USDC or any other crypto you use to your Polymarket deposit address.
- Polymarket will wrap the incoming USDC into pUSD through the collateral onramp. Assets from other networks, such as Ethereum, are also bridged and swapped to pUSD on Polygon.
- The pUSD credits are available in your account balance for trading.
Withdrawing from Polymarket
Before initiating a withdrawal request, you may want to know, “Is Polymarket available in California?” The answer is yes, and you can withdraw from your account as follows:
- Choose the destination network, chain, and specific address you want to withdraw to.
- Polymarket unwraps the pUSD through the collateral onramp and further swaps it for USDC.
- The funds are bridged to your preferred chain and are now available to withdraw normally. No Polymarket withdrawal fees charged.
Bridging cryptocurrencies across chains incurs varying network fees, which are added to the Polymarket fees per contract, even though withdrawals and deposits are free.
How to keep Polymarket fees low
By now, you know how Polymarket fees work and are probably thinking of ways to keep your trading costs at a minimum. For the savviest traders, it is possible to reduce the Polymarket fees and costs by following these tips.
Pros and cons of Polymarket fees
Pros
Vary depending on order size and market category. Makers trade fee-free and can collect rebates. Geopolitical markets attract no fees. Taker rebates are available to higher-volume traders. No Polymarket withdrawal or deposit fees.Cons
Third-party costs can inflate overall fees.Trade fee-free on Polymarket
Polymarket is a prediction markets platform that charges a taker fee for each market order that removes liquidity from the platform. The fee depends on the market category you want to buy shares in, the number of shares, and the live share price. The crypto category (0.07) has the highest fee rate, while contracts on geopolitical events are free to trade. Polymarket also does not charge deposit or withdrawal fees; however, these can still creep up due to third-party transaction costs.
Market makers who place limit orders that add liquidity to the market trade for free and are eligible for the rebate program that returns 15%-25% of the fees collected from takers. There’s also a taker rebate program that you can join if you’re a high-volume trader. These types of orders and programs can help you keep your Polymarket fees low. Click on the Polymarket bonus banners here to get started.
FAQs about Polymarket fees
Mike Murphy is the founder of BettingUSA.com and has over 20 years of experience in the legal gambling industry. A regular attendee of industry trade shows and conferences, Mike is a strong proponent in the idea of a well regulated online betting industry.