Kalshi is the first CFTC-regulated event contract exchange in the US — event trading with bank transfers, customer protections, and 1099 tax forms. It's the compliance-first counterpart to crypto-native platforms.
Setup and Funding
Standard brokerage-style onboarding: US identity verification, then funding by ACH (free, 1-2 days), debit, or wire. No crypto involved — dollars in a regulated exchange member account, with funds held per CFTC customer-protection rules. Available across most US states, with sports event contracts live in a growing subset as regulation evolves.
Contracts and Fees
Markets are binary contracts priced 1-99¢: economics (CPI, Fed rates), weather, politics, awards, sports. Buy Yes or No; sell anytime before settlement. Kalshi charges explicit trading fees (roughly ~1% of notional at mid-range prices, cheaper at extremes) instead of embedding costs in spreads — on liquid markets, all-in costs compare well with any competitor.
Settlement and Taxes
Contracts settle at $1.00 or $0 per the official source named in each market's rules — CPI prints, election certifications, league results. Cash settles same-day to your balance; ACH withdrawals take 1-2 days. Tax treatment is the quiet advantage: regulated exchange trading generates 1099 forms and capital-gains-style treatment rather than gambling-income rules, simplifying filing for active traders.
Frequently Asked Questions
Is Kalshi legal in my state?
Kalshi operates federally under CFTC jurisdiction with broad US availability; specific contract classes (notably sports) vary by state as rules evolve. The app shows what you can trade.
Kalshi or Polymarket?
Kalshi for regulated dollars, bank rails, and clean taxes; Polymarket for liquidity depth and global market variety. Serious event traders commonly run both — see our full comparison.
