For most traders, Polymarket's fee advantage alone justifies the crypto learning curve.
💡 Beginner? Start with PredictIt, upgrade to Polymarket after learning crypto
Head-to-head comparison of fees, custody, markets, and liquidity. Polymarket's 2% fee vs PredictIt's 15% — does it matter? Plus: which platform fits your trading style.
⚡ Quick Verdict
Choose Polymarket if: You're crypto-comfortable, want lowest fees (2%), highest liquidity, and non-custodial control
Choose PredictIt if: You're US-based beginner, want simple credit card deposits, and only care about politics (not crypto)
| Category | Polymarket | PredictIt | Winner |
|---|---|---|---|
| Trading Fees | ~2% | 10% | 🏆 Polymarket |
| Withdrawal Fee | $0 (gas ~$0.20) | 5% | 🏆 Polymarket |
| Total Cost (Win $100) | $2.20 | $15 (10% + 5%) | 🏆 Polymarket (7x cheaper!) |
| Custody Model | Non-custodial | Custodial | 🏆 Polymarket |
| Deposit Method | USDC (crypto) | Credit card/bank | 🔶 PredictIt |
| Trade Limits | Unlimited | $850/market | 🏆 Polymarket |
| Liquidity (Politics) | $3B+ annually | ~$100M annually | 🏆 Polymarket |
| Spread (Major Markets) | 0.5–1% | 3–5% | 🏆 Polymarket |
| Market Categories | Politics, crypto, sports, earnings | Politics-focused | 🏆 Polymarket (broader) |
| US Access | Legal (CFTC DCM, 2025) | Legal (nonprofit exemption) | ➡️ Tie |
| Ease of Use | Medium (wallet required) | High (simple) | 🔶 PredictIt |
| KYC Required | Email only (currently) | Full SSN/ID | 🏆 Polymarket |
| Best For | Crypto traders, active traders, low fees | Beginners, simple UX, political enthusiasts | ➡️ Depends |
This is the biggest difference between platforms. PredictIt's combined 15% fees destroy profits.
Polymarket
PredictIt
🎯 Difference: $259.80 per trade
On 10 winning trades, Polymarket saves $2,598. On 100 trades: $25,980 saved.
💡 When PredictIt Fees Don't Matter
If you make 1–2 trades per year with small amounts ($50–$100), fee difference is minimal. But for active traders, Polymarket is mandatory.
Hard limit: You can't bet more than $850 on any single market, regardless of conviction.
Real impact: If you want to bet $5,000 on Trump winning, you can't. You're locked at $850 max.
Why it exists: Nonprofit educational exemption limits commercial trading (CFTC requirement).
No limits: Trade $100, $10,000, or $1M+ if you want.
Real impact: Professional traders and whales can deploy full capital. Market efficiency improves.
Example: 2024 election markets routinely see $100k+ individual positions.
🏆 Winner: Polymarket — No question. $850 cap makes PredictIt unsuitable for serious traders.
Higher liquidity = tighter spreads = better prices = more profit. Simple.
| Metric | Polymarket | PredictIt |
|---|---|---|
| Annual Volume | $3B+ | ~$100M |
| Typical Spread (Major) | 0.5–1% | 3–5% |
| Order Book Depth | $50k+ at best price | $5k at best price |
💡 What This Means in Practice
On Polymarket: Buy Yes at $0.60, immediately sell at $0.605 (0.5% spread).
On PredictIt: Buy Yes at $0.60, immediately sell at $0.57 (3% spread) = instant 5% loss just from entry/exit.
Time: 30–60 min (first time)
Difficulty: Medium-High
Time: 10–15 min
Difficulty: Low
🔶 Winner: PredictIt — Onboarding 3x faster for non-crypto users. If you've never touched crypto, PredictIt is more accessible.
👨💻 Active Trader (>10 trades/month)
Recommendation: Polymarket
15% PredictIt fees will destroy your profits. With 100 trades, you'd pay $15,000 vs $2,000 on Polymarket. No contest.
🆕 Complete Beginner (Never Used Crypto)
Recommendation: PredictIt → Polymarket Later
Start on PredictIt (simple setup). Once comfortable with prediction markets, learn crypto and upgrade to Polymarket for lower fees.
💰 Large Position Trader (>$850/trade)
Recommendation: Polymarket
PredictIt's $850 cap makes it unusable. Polymarket has no limits — trade $10k, $100k, whatever you want.
🗳️ Political Enthusiast (1–2 trades/year)
Recommendation: Either works
Fee difference minimal at low volume ($15 vs $2 = $13 difference). Choose based on ease of use (PredictIt simpler) vs fees (Polymarket cheaper).
🔒 Privacy-Conscious User
Recommendation: Polymarket
Email-only KYC (vs PredictIt's full SSN/ID). Non-custodial = no platform tracking of holdings. Though KYC expected 2026.
Scenario A: "I bet $50/month on politics"
Your profile: Casual political enthusiast, 1–2 trades monthly
PredictIt cost/year: ~$90 in fees (15% × $600 trades)
Polymarket cost/year: ~$12 in fees (2% × $600 trades)
Savings: $78/year
Verdict: Polymarket if crypto-comfortable. PredictIt if crypto intimidates you (setup frustration outweighs $78 savings).
Scenario B: "I'm a professional trader ($5k/month)"
Your profile: Active trader, 50+ trades monthly, looking for alpha
PredictIt cost/year: ~$9,000 in fees (15% × $60k trades)
Polymarket cost/year: ~$1,200 in fees (2% × $60k trades)
Savings: $7,800/year
Verdict: Polymarket mandatory. $7,800 savings = massive edge. Plus $850 cap blocks large positions.
Scenario C: "I want to bet $2,000 on the election"
Your profile: High-conviction single trade
PredictIt: Can only bet $850 (hard cap)
Polymarket: Can bet full $2,000 (or $20,000)
Verdict: Polymarket only option. PredictIt literally can't accommodate this trade.
Polymarket is objectively superior for 90% of traders.
The only reason to choose PredictIt:
For everyone else: Polymarket's 7x lower fees, unlimited positions, and 30x deeper liquidity make it the clear winner.
Our advice: If you're serious about prediction markets, invest 1 hour learning crypto. The $100–$10,000+ annual savings makes it worthwhile.
For most traders, Polymarket's fee advantage alone justifies the crypto learning curve.
💡 Beginner? Start with PredictIt, upgrade to Polymarket after learning crypto
Disclaimer: This comparison reflects both platforms as of October 2025. Fees and features may change. This is not financial advice or platform endorsement. Both are legitimate regulated platforms. Choose based on your needs. Not affiliated with Polymarket or PredictIt.