Betting Exchange Commission Rates
Betting exchanges, unlike traditional bookmakers and sportsbooks, charge their customers commission.
One of the benefits of using a betting exchange is that in general, they offer bigger odds. Obtaining these bigger odds, less the commission charged is often better than taking the odds offered by traditional bookmakers and sportsbooks.
Betting exchange commission rates vary by company, both in the percentage amount charged and the structure of how the commission rate is calculated.
But how much commission do the different bet exchanges charge?
Betfair commission is paid on winnings and rates are on a sliding scale, starting at 5% and down to a low of 2%.
Your discount rate reduces the percentage of commission you pay and is based on how many Betfair points you earn. You earn points from your turnover of stakes, so the more money you stake and the greater your turnover, the greater your discount rate right down to the minimum 2% commission.
You need to be betting and turning over significant sums of money to get down to the minimum commission rate of 2%. It is out of the reach of most but the high roller customers or high volume traders.
The Betdaq commission structure is simpler and lower than that charged by Betfair.
Betdaq charges a flat commission rate of 2% on winnings to all customers.
Ladbrokes purchased the Betdaq exchange in 2013. The Ladbrokes exchange is plugged into the Betdaq platform. When you bet on the Ladbrokes exchange you are betting on the Betdaq exchange.
As you’d expect, the Ladbrokes exchange commission rate is the same as Betdaq – 2% on all exchange bets charged on winnings.
Smarkets Betting Exchange
Smarkets charge a flat rate commission rate of 2% on net winnings on any market. No commission is paid on losses.
Matchbook Sports Betting Exchange
Matchbook charge a flat rate 2% commission on your net profit on a market. You will not pay commission on losing bets.
There are 2 types of accounts on Betconnect. You can either open a Pro account or a Punter account. In betting exchange terms, a Pro account is a backers account, a Punter account is a layers account.
For Pro accounts the maximum commission charged is 3%, which is calculated in 2 ways dependant on at what price the bet is struck at.
The commission is calculated on the Pros stake if the odds of the selection are even money (2.0 in decimals) or greater. If the price of your selection is less than evens (1.99 in decimals or less) then the commission is charged on the bets potential profit.
£100 @ 2/1 – commission is £100 x 3% = £3.00
£100 @ 2/5 – commission is £40 x 3% = £1.20
Punter accounts are commission-free.