BrokerCFTC registered
What are Webull prediction markets? Who runs them, how they’re regulated, and what traders should know
As of October 26, 2026, Webull offers event contracts through Webull Futures LLC, a futures commission merchant registered with the Commodity Futures Trading Commission (CFTC). Its risk disclosure for event contracts names two exchanges, KalshiEX and Crypto.com | Derivatives North America (CDNA); its Help Center names Kalshi alone. Webull’s tax pages name no form for event contracts. The sections below cover who you deal with, fees, records and tax forms.
By Owen Monagan, Founder & CEOUpdated
Webull event contracts at a glance
Checked October 26, 2026- Registration
- A futures commission merchant registered with the CFTC; NFA member, NFA ID 0568685 Source
- Exchanges in its FCM disclosures
- KalshiEX LLCNorth American Derivatives Exchange, Inc. d/b/a Crypto.com | Derivatives North America Source
- Exchange in its Help Center
- “Webull provides customers access to eligible Kalshi-listed event contracts” Source
- Fees
- $0.01 Webull commission plus $0.01 exchange fee per contract, on opening and closing trades Source
- Fees in cost and proceeds
- “Fees are added to your cost when you buy and deducted from your proceeds when you sell” Source
- Tax forms listed
- A consolidated 1099 (1099-B, 1099-DIV, 1099-INT and 1099-MISC), first run January 31 (estimated) Source
How it works
Who do you deal with when you trade event contracts on Webull?
Webull Futures is the broker. The exchange lists the contracts.
Webull’s event contract overview says Webull Futures LLC, a futures commission merchant (FCM) registered with the CFTC and a member of the NFA, provides the account, accepts orders and routes them to the exchange. The exchange lists the contracts and matches the orders. Webull Futures’ CFTC Rule 1.55(k) disclosure adds that it self-clears these trades on Kalshi Klear and Nadex, where they are treated as cleared swaps.
Webull’s documents name different exchanges. Its risk disclosure for event contracts names two, each a CFTC designated contract market: KalshiEX LLC and North American Derivatives Exchange, Inc. d/b/a Crypto.com | Derivatives North America (CDNA). Its Help Center names Kalshi alone, saying Webull gives customers access to “eligible Kalshi-listed event contracts.” Webull’s pages don’t say which contracts, if any, trade on CDNA.
Event contracts sit in their own account. Webull calls it “a separate swap account with its own account number,” and that number marks event contract activity on statements. Winning payouts are credited to the linked brokerage account. Webull says the CFTC classifies event contracts as “a type of swap,” and that event contract accounts are not protected by SIPC.
Sports contracts are unavailable in four states. Webull’s eligibility article says sports-related event contracts are not available to residents of Nevada, Maryland, Connecticut or Michigan. Lawsuits and orders naming Webull are tracked in Webull legal status.
Fees
What do Webull event contracts cost?
$0.02 per contract to open a position and $0.02 to close it.
Webull charges a $0.01 commission per contract, and the exchange charges a $0.01 fee. That is $0.02 per contract on every opening trade and every closing trade, according to Webull’s fee article. Webull says neither it nor Kalshi charges a settlement fee, so a contract held until it settles costs nothing more.
In Webull’s own example, a $0.45 contract plus the $0.02 fee costs $0.47. If the outcome is correct, the $1 payout is a $0.53 profit. Webull says fees are “added to your cost when you buy and deducted from your proceeds when you sell,” and its statements and trade confirmations list the fees charged.
Tax forms
Which tax form does Webull send for event contracts?
Webull’s tax pages don’t say.
Webull’s tax document page lists a consolidated 1099 (Forms 1099-B, 1099-DIV, 1099-INT and 1099-MISC), with a first run estimated for January 31. It describes the 1099-B as reporting “the sale of securities, including stocks, bonds, and other financial instruments.” None of Webull’s tax pages names a form for event contracts. Webull’s event contracts FAQ, as archived on September 11, 2026, said Webull would use “necessary tax forms such as Form 1099”; that answer is no longer on the page. Why prediction markets don’t send 1099s covers what each venue says.
The records Webull does describe are in the app under Account > Events > History: Order Records, Fund Records and Settlement Records. Webull’s tax documents article files tax forms under Securities Tax Documents.
There is no IRS guidance on how event contracts are taxed. Of the people we’ve seen file, three routes are the most common, and Prediction market taxes compares them on one year. Realize does not connect to Webull, so the prediction market tax calculator works from a year’s net result taken from these records.
More on Webull
More on Webull prediction markets.
Where Webull stands state by state, and how a prediction-market year is taxed.
- Webull legal status, state by stateLegal Every state where an order covers Webull’s event contracts or a lawsuit is live, each one dated and linked to the filing.
- Prediction market taxesOverview How a prediction-market year is taxed, from the first trade to the filed return, with the three common treatments priced on one year.
Guides4 guides
Read further.
What each venue says about 1099s, and how each common treatment works for any prediction-market year.
- Why Don't Most Prediction Markets Send a 1099? Most CFTC-regulated prediction markets send no 1099 for contract trades. Which venues do, which don't, and which tax treatment each form lines up with.
- What Is the Section 1256 60/40 Rule? Section 1256 contracts get a blended 60% long-term / 40% short-term rate, mark-to-market and a loss carryback. Why it may matter to prediction-market traders.
- Prediction Market Capital Gains and Form 8949 Filing Kalshi and Polymarket trades as capital gains: one Form 8949 row per closed position, settlement as a sale, the $3,000 loss limit and the carryforward.
- Are Prediction Markets Taxed as Gambling? No IRS guidance says Kalshi or Polymarket contracts are wagering. What gambling treatment puts on the return for a year, set beside standard capital and Section 1256.
Sources14 documents
Where each fact comes from.
Every figure above links to one of these, read on the date shown.
- Webull Help Center: Event Contract Overview Checked October 26, 2026
- NFA BASIC: Webull Futures LLC (NFA ID 0568685) Checked October 26, 2026
- Webull Futures LLC: Risk Disclosure for Event Contract Trading (PDF) Checked October 26, 2026
- Webull Futures LLC: CFTC Rule 1.55(k) Firm Specific Disclosure, as of August 31, 2026 (PDF) Checked October 26, 2026
- Webull Help Center: Opening an Event Contract Account Checked October 26, 2026
- Webull Help Center: Event Contract Trading Hours and Availability Checked October 26, 2026
- Webull Help Center: Event Contract Fees Checked October 26, 2026
- Webull Help Center: Event Contract Pricing and P&L Checked October 26, 2026
- Webull Help Center: Event Contract Settlement and Payouts Checked October 26, 2026
- Webull Help Center: Managing Event Contract Orders and Positions Checked October 26, 2026
- Webull Help Center: Event Contract Eligibility, Restrictions, and Opt-Out Checked October 26, 2026
- Webull Help Center: Tax Document Availability Checked October 26, 2026
- Webull Help Center: Accessing Tax Documents Checked October 26, 2026
- Webull Help Center: Common Questions About Event Contracts, archived September 11, 2026 Checked October 26, 2026
Also on Realize
Run your own numbers.
Calculators for a quick estimate, and the rest of the Tax Center.
Price your Webull year three common ways.
Enter your Webull event contract net for a federal range under each common route.