Robinhood review

Robinhood's Prediction Markets Hub lets you trade event contracts inside the Robinhood app through Robinhood Derivatives, a CFTC-registered broker routing to four exchanges, including its own Rothera. It's the easiest on-ramp if you already invest, and the biggest by contracts traded.

Robinhood prediction markets let you trade event contracts inside the Robinhood app, and as of October 2026 it’s the largest US venue by contracts traded. It’s the simplest option if you already invest with Robinhood. The trade-offs: a commission and a separate exchange fee that usually cost more than going direct to Kalshi, settled-cash-only funding, and sports restrictions in a few states.

Our verdict

Score: 8.5 / 10. Robinhood is the friendliest way into prediction markets for anyone who already has the app. Event contracts sit in its Prediction Markets Hub, handled by Robinhood Derivatives, LLC, which Robinhood describes as “a registered futures commission merchant with the Commodity Futures Trading Commission.” You don’t need a new account, a crypto wallet or a new app. The cost of that convenience is a two-layer fee and fewer controls than a dedicated exchange.

How Robinhood prediction markets work

Robinhood is a broker, not the exchange. Its help centre says event contracts “are offered by Robinhood Derivatives, LLC through either KalshiEX LLC, ForecastEX, LLC or Rothera Exchange and Clearing LLC, or North American Derivatives Exchange, Inc.” That’s four exchanges, not just Kalshi.

Rothera is the newest route. Robinhood invested in Rothera, a joint venture with Susquehanna International Group, in November 2025. On January 20, 2026 Rothera bought 90% of the exchange formerly known as LedgerX (MIAXdx), which the CFTC has designated a contract market since 2019 and registered as a clearing house since 2017. Robinhood began routing contracts there on June 4, 2026, starting with World Cup and baseball markets.

Each contract pays $1 if it’s right and $0 if not. Markets cover sports (game outcomes, spreads, totals, player performance and combos), economics (inflation, jobs, the Fed), politics, crypto, climate and weather, and entertainment. Combos are Robinhood’s parlays: custom combos allow “up to 10 legs,” and “all outcomes in the combo must be correct for it to pay $1.” Trading is only available in the mobile app.

Robinhood prediction market fees

Robinhood moved to a probability-weighted commission on June 1, 2026. Per its fee schedule:

• Commission = k × price × (1 − price) × contracts, where k is 10%, or 5% with Robinhood Gold, rounded up to the next cent.
• Robinhood’s overview adds: “We round up to the nearest $0.01 on all trades with a maximum commission rate of $0.01 per contract.”
• Plus an exchange fee, “up to $0.01 per contract.” For Kalshi-listed contracts it’s $0.01 per contract, per side.
• Both apply when you open and when you close a position.

Our Robinhood cost check

Reading the formula and the $0.01 cap together, the cap is what you pay at most prices. Without Gold, the formula only comes in under 1¢ per contract below about 11¢ or above about 89¢. Here’s the total cost of buying 100 Kalshi-listed contracts, compared with trading the same contracts directly on Kalshi as a taker:

Robinhood’s own worked example matches: 100 contracts at 90¢ with a $0.01 exchange fee cost “$91.45 with Gold and $91.90 without.” The takeaway is that you pay about 14% more in fees than a Kalshi taker at 50¢, and about three times as much at 10¢ or 90¢, in return for the convenience of trading inside your brokerage app. See our Kalshi fees guide for the direct costs.

Funding and withdrawals

Event contracts use a separate buying-power balance that’s “swept between the accounts automatically,” but “only fully settled cash can be used to buy event contracts.” Instant deposits aren’t available for them. Winnings move “by the next business day” from Robinhood Derivatives back to your Robinhood Financial account, and you can withdraw from there.

Who can use it

You need an approved Robinhood Derivatives account, an individual brokerage account, US residency, and to be 18 or older. Approval depends on “your trading experience, investment profile, and state of residence.”

Where Robinhood prediction markets are restricted

As of October 2026, Robinhood’s overview says:

• Maryland and Nevada: residents “can’t trade sports event contracts.” Robinhood’s separate restrictions article goes further for Maryland: it says residents “can’t trade event contracts” at all. Check the app.
• Michigan: residents “can’t open new sports event contracts as of September 9, 2026.” This followed an agreement with the Michigan Gaming Control Board that lasts until related Sixth Circuit appeals are resolved.

In Nevada, the Ninth Circuit ruled against Robinhood on August 28, 2026, concluding that sports contracts “are not ‘swaps.’” Robinhood’s Q2 2026 10-Q also discloses disputes with New Jersey (where the state agreed to an injunction pending appeal), Massachusetts, Washington, Wisconsin and Kentucky. Our legality tracker has the wider state picture.

Scale

Robinhood reports volume in its earnings. It traded “over 12 billion event contracts” in 2025 and a record 13.6 billion in Q2 2026 alone, when event contracts revenue was $156 million, “up over 10x” year on year.

Robinhood vs the alternatives

If you want the lowest fees and the widest range of markets, trade on Kalshi directly. If you already use Robinhood and want simplicity, its hub is hard to beat. Compare the two biggest exchanges in Kalshi vs Polymarket. Visit Robinhood.

Figures as of October 2026 and subject to change. Scores reflect our editorial methodology, weighted for US traders. Not financial or betting advice.

18+ (21+ where required). Prediction markets involve risk of loss — only trade what you can afford to lose. Gambling problem? Call or text 1-800-MY-RESET (National Problem Gambling Helpline, 24/7).