Understanding Polymarket's fee structure is essential for profitable trading. While the platform advertises "low fees," there are several costs that can eat into your profits if you're not aware of them.

In this guide, we break down every fee you'll encounter on Polymarket - from trading fees to gas costs - and share strategies to minimize what you pay.

Polymarket Fee Summary

Fee on Winning Positions

Fee on Losing Positions

Deposit/Withdrawal Fee

<$0.01

Typical Gas Cost

The 2% Trading Fee Explained

Polymarket charges a 2% fee on winning positions only. This is the main fee you'll pay on the platform. Here's how it works:

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Example: Winning Trade

You buy YES at:$0.40 per share

Number of shares:100 shares

Your investment:$40.00

If you WIN (shares worth $1 each):$100.00

Gross profit:$60.00

2% fee on profit:-$1.20

Net profit:$58.80

Example: Losing Trade

You buy YES at:$0.40 per share

Number of shares:100 shares

Your investment:$40.00

If you LOSE (shares worth $0):$0.00

2% fee:$0.00 (no fee on losses)

Net loss:-$40.00

Key Insight

The 2% fee only applies to your profit, not your total payout. If you buy at $0.40 and win $1.00, the fee is 2% of your $0.60 profit ($0.012 per share), not 2% of the $1.00 payout.

Maker vs Taker Fees

Polymarket uses a maker-taker fee model for order book liquidity. Understanding this can save you money on frequent trades.

Maker (Add Liquidity)

Place limit orders that sit on the order book waiting to be filled.

0% Fee

You're rewarded for adding liquidity

Taker (Remove Liquidity)

Market orders or limit orders that fill immediately against existing orders.

~0.1% Fee

Small fee for taking liquidity

How to be a maker:Place limit orders at prices below the best ask (for buys) or above the best bid (for sells). If your order sits on the book before being filled, you're a maker.

Gas Fees (Network Costs)

Because Polymarket runs on Polygon, gas fees are extremely low - typically less than $0.01 per transaction. However, you'll still encounter gas costs in these situations:

Trading

Each buy/sell order costs ~$0.001-$0.01 in gas. Negligible for most traders.

Approvals (First Trade)

Your first trade requires approving smart contracts. One-time cost of ~$0.01-$0.05.

Bridging from Ethereum

If you bridge from ETH mainnet, expect $5-$20 in gas depending on network congestion.

Withdrawals

Withdrawing to Polygon costs ~$0.01. Withdrawing to Ethereum costs much more.

Hidden Costs to Watch Out For

Beyond the official fees, there are some indirect costs that can affect your profitability:

Spread

The difference between buy and sell prices. In low-liquidity markets, spreads can be 5-10%, meaning you're already at a loss the moment you buy.

Slippage

Large orders can move the market, causing you to get worse prices than expected. Use limit orders for large trades.

On-Ramp Fees

If you buy USDC with a credit card, expect 3-5% fees from payment processors like MoonPay.

How to Minimize Fees

Use Limit Orders

Maker orders have 0% trading fee. Place orders below the current price and wait for fills.

Trade High-Liquidity Markets

More liquid markets have tighter spreads, reducing your effective cost to enter and exit.

Fund via Crypto Transfer

Send USDC on Polygon from an exchange to avoid card fees. Coinbase, Binance, and Kraken all support Polygon withdrawals.

Batch Your Trades

Instead of making many small trades, batch them together to reduce the number of gas transactions.

Consider Sports Markets

Polymarket currently offers 0% fees on sports markets to encourage volume. Take advantage while it lasts.

Polymarket Fees vs Competitors

Platform	Trading Fee	When Charged
Polymarket	2%	On winning profit only
Kalshi	1-7%	Per contract (varies)
PredictIt	10%	On all profits
Betfair	2-5%	Commission on winnings

Polymarket's fee structure is among the most competitive in the prediction market space, especially considering the platform's liquidity and market variety.

Fee Impact on Different Strategies

Long-Term Holders

If you buy low and hold until resolution, the 2% fee is negligible. A 50% gain minus 2% fee still leaves you with 48% profit.

Impact: Low

Day Traders

Frequent traders face more friction from spreads and gas. Focus on high-volume markets and limit orders.

Impact: Medium

Arbitrage Traders

Arbitrage profits are often small (1-5%), so the 2% fee can eat significantly into gains. Need to find opportunities with at least 3%+ edge.

Impact: Medium-High

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Frequently Asked Questions

Does Polymarket charge fees on deposits?

No. Polymarket doesn't charge deposit fees. However, if you use MoonPay or a similar service, they charge 3-5%.

Are there withdrawal fees?

Polymarket doesn't charge withdrawal fees. You only pay network gas costs (typically under $0.01 on Polygon).

When is the 2% fee deducted?

The fee is deducted automatically when a market resolves in your favor, or when you sell a winning position.

Do fees apply to sports markets?

Currently, Polymarket offers 0% fees on sports markets as a promotional incentive. This may change in the future.

Can I deduct trading fees on taxes?

Consult a tax professional, but generally trading fees can be included in your cost basis, reducing taxable gains.