So you made all of that money after the 5% fee?
Just as a question, because I've never personally used PredictIT do they spell it out pretty clearly when buying the 'yes' or 'no' portion of the bet that they will be charging you that 5%? I feel like they don't really push it enough, and people are just told that they can make some 'free money' on this platform without taking into account the fees.
It's like the markets (I think this was one of them) where you could bet as to if Kanye would win or something along those lines. You may be able to make 5% on the 'no' side, but all of that is going to go to PredictIt anyway. Plus you're going to be further losing when it comes to credit card fees and such.
There are two different fees: profit fee (10%) and withdrawal fee (5%). Profit fee is mostly bearable because you pay it only if you win and only on the winnings. So if you bet $80, win $100, you pay $2. The only caveat is that you don't get a fee refund on losses so might wanna be careful rolling over some losing positions.
Withdrawal fee sucks bigly. Basically you have to pay it win or lose, on the whole amount. Which means you need to make at least +5% to break even. The good thing (and probably part of the reason for this fee) is that they accept credit card deposits. So with a 2% credit card cashback it's slightly less horrible.
But of course you can keep betting as much as you like before withdrawing... which is I think what most people are doing there, particularly with these really stupid bets like Trump winning the popular vote. Bet, wait for it to pump a few cents, sell, rinse and repeat. There is a $800 limit per market per person, and max 5000 traders per market, so some of the most popular markets like Dem vs Rep president are full... but there are others like "South Carolina Dem Primary winner elected president", which is basically the same thing. And all trade around 1:9 instead of 1:99 as it should. Insanity.
Ah. Yeah, the withdrawal fee is all I remember being told about. Wasn't so sure about the other fees that are present.
I'm guessing the withdrawal fee for them is just a catch all to deal with credit card processing, as they're in a pretty high risk category when it comes to chargebacks, probably high fee, and so on. Not fully sure on how the legality works when it comes to PredictIt as it is gambling, though they do have those limits per market which is what you spoke of.
May go on there and play with it a bit in an attempt to make a few bucks, lol. Just was always a bit pissed about the whole 5% fees. But I was under the impression that it was 5% plus processing fees, so with a 2% cashback card it takes a bit off and I, thankfully, have one of those.
