Robinhood prediction markets: fees, rules and Kalshi compared
Robinhood sells event contracts as a broker. Robinhood Derivatives, LLC, a CFTC-registered futures commission merchant, routes your orders to one of four exchanges: KalshiEX LLC, ForecastEX LLC, Rothera Exchange and Clearing LLC, or Crypto.com Derivatives North America. As of November 2026, you pay a Robinhood commission of up to $0.01 per contract plus an exchange fee of up to $0.01, so no more than $0.02 per contract in total.
How Robinhood's prediction markets work
Robinhood does not run the order book for most of what you see. Its support page says event contracts "are offered by Robinhood Derivatives, LLC" through those four exchanges. Robinhood is the intermediary that holds your account, shows the prices and passes the trade on.
One of those exchanges is Robinhood's own venture. Rothera, LLC is "a joint venture managed by Robinhood Markets, Inc. and Susquehanna International Group," and Rothera Exchange and Clearing LLC is its wholly owned subsidiary. Robinhood describes Rothera as "a CFTC-licensed exchange and clearinghouse." On June 4, 2026, Robinhood began sending a selection of World Cup and professional baseball contracts to Rothera, with plans to "scale over time."
In practice, you see one Robinhood market screen, while the contract behind it may sit on Kalshi, ForecastEx, Rothera or Crypto.com's exchange.
Who can trade event contracts on Robinhood
Robinhood's support page lists these requirements:
- You are 18 or older and a US resident.
- You have an individual brokerage account.
- You apply for, and are approved for, a Robinhood Derivatives account in the app.
If you apply repeatedly without approval, or turn event contract trading off and then try to turn it back on, "a 30-day waiting period may apply" before your next application is reviewed.
Robinhood's page does not mention options or margin approval. Some third-party reviews still list "margin investing enabled" or "options trading approved (Level 2 or 3)" as a requirement, so treat the in-app application as the final word.
Funding comes from settled cash in your Robinhood account. Instant deposits, meaning ACH cash that has not cleared yet, cannot be used for event contracts.
How much does Robinhood charge per contract?
On June 1, 2026, Robinhood moved from a flat fee to a probability-weighted commission:
commission = k × p × (1 − p) × contracts
Here k is 10% for standard accounts and 5% for Robinhood Gold ($5 a month), and p is the contract price. Commissions round up to the nearest cent and are capped at $0.01 per contract. On top of that, the exchange fee "can be up to $0.01 per contract," and it applies to both opening and closing trades.
Robinhood's own example: 100 Yes contracts at 90¢ with a $0.01 exchange fee cost $91.45 with Gold ($0.45 commission) or $91.90 without it ($0.90 commission).
The cap does a lot of work. Without Gold, the formula hits the 1¢ cap at any price between roughly 11¢ and 89¢. With Gold, it hits the cap between roughly 28¢ and 72¢. In that middle band, Gold saves you nothing on commission.
Robinhood vs trading on Kalshi directly: fee example
Kalshi's own fee schedule (effective July 7, 2026) charges takers 0.07 × contracts × p × (1 − p), rounded up. Resting maker orders pay nothing by default. The table compares 100 contracts bought as a taker, assuming Robinhood's maximum $0.01 exchange fee.
| Price | Robinhood, standard | Robinhood Gold | Kalshi direct, taker | Kalshi direct, maker (default) |
|---|---|---|---|---|
| 10¢ | $0.90 + $1.00 = $1.90 | $0.45 + $1.00 = $1.45 | $0.63 | $0.00 |
| 50¢ | $1.00 + $1.00 = $2.00 | $1.00 + $1.00 = $2.00 | $1.75 | $0.00 |
| 90¢ | $0.90 + $1.00 = $1.90 | $0.45 + $1.00 = $1.45 | $0.63 | $0.00 |
Near the extremes, Kalshi direct costs less than half of what Robinhood charges in this example. At 50¢ the gap narrows to 25¢ per 100 contracts. Robinhood's exchange fee may come in below the 1¢ maximum on some trades, which would narrow the gap further.
At 10¢ or 90¢, Gold saves about $0.0045 per contract on commission. You would need roughly 1,100 contracts a month at those prices to cover the $5 fee, and more at prices closer to 50¢.
Which markets Robinhood offers
Robinhood's support page lists sports, politics, weather, commodities and entertainment. Its state rules also refer to culture and elections contracts. The selection varies by state, and "some contracts may not be available in every state or territory."
State restrictions
As of November 2, 2026, Robinhood's support page says:
- Residents of Maryland, Michigan and Nevada cannot trade sports event contracts.
- Residents of Ohio cannot open new sports positions.
- Residents of Utah cannot open new positions in sports, culture, elections or politics.
DeFi Rate (updated November 6, 2026) also reports a Connecticut cease-and-desist order from September 10, 2026 and a Missouri letter about sports contracts. Robinhood has not confirmed how either affects in-app availability. Our state availability page tracks these changes.
Robinhood or Kalshi: which fits you
| Robinhood | Kalshi direct | |
|---|---|---|
| Account | Inside your existing Robinhood brokerage account, after Derivatives approval | Separate Kalshi account (18+, US residential address, identity verification) |
| Cost per contract | Commission up to $0.01 plus exchange fee up to $0.01 | Taker 0.07 × p × (1 − p); maker $0 by default |
| Funding | Settled cash; no instant deposits | ACH and wire with no Kalshi fee; debit card up to 2%; crypto through a third-party processor |
| Exchanges | Kalshi, ForecastEx, Rothera, Crypto.com | Kalshi only |
If you already keep cash at Robinhood and trade a few contracts a month, the convenience may outweigh a few dollars in fees. If you trade hundreds of contracts, trade near the extremes, or like to post resting limit orders, Kalshi direct costs less on the numbers above.
A 1¢ better ask on one venue is worth $1 per 100 contracts, which can outweigh the fee difference. Check live prices before you trade, and use the fee calculator to price a specific order. For the full fee mechanics, see Kalshi fees. Other brokers and apps are compared in our platform comparison, and the legal background is in Is Kalshi legal?
This is general information, not investment advice. Event contracts can expire worthless, and you can lose the full amount you pay.
FAQ
Does Robinhood use Kalshi for prediction markets?
Partly. Robinhood Derivatives, LLC routes event contracts to KalshiEX LLC, ForecastEX LLC, Rothera Exchange and Clearing LLC, or Crypto.com Derivatives North America. Rothera is a joint venture managed by Robinhood and Susquehanna.
How much does Robinhood charge per event contract?
As of November 2026, Robinhood's commission is 10% × p × (1 − p) per contract (5% with Robinhood Gold), capped at $0.01. An exchange fee of up to $0.01 per contract is added on opening and closing trades, so the total is at most $0.02 per contract.
Do I need options approval to trade prediction markets on Robinhood?
Robinhood's support page lists only age 18+, US residency, an individual brokerage account and an approved Robinhood Derivatives account. Some third-party reviews still mention margin or options approval, so the in-app application decides.
Is Robinhood Gold worth it for event contracts?
Only at high volume. Gold saves at most about half a cent per contract, and nothing at prices between roughly 28¢ and 72¢, so covering the $5 monthly fee takes about 1,100 contracts a month near 10¢ or 90¢.
Which states can't trade sports contracts on Robinhood?
As of November 2, 2026, Robinhood says residents of Maryland, Michigan and Nevada cannot trade sports event contracts, and residents of Ohio and Utah cannot open new sports positions. Utah also blocks new culture, elections and politics positions.