6. Betting Exchange Comparison

Now you know about laying its worth knowing a bit more about the exchanges.  In particular while we've spoken about the fact that you are in fact betting with other people, there is also a commission deduction otherwise the exchange wouldn't make any money.

Commission is charged on winnings only (effectively threes always one winner and one loser for every bet) at rates that vary both by exchange and depending on the amount that you use the exchange (usually based on total monthly stakes)

Of course commission is only one factor in comparing exchanges.  Things like market liquidity and range of market are also very important, but these are usually pretty transparent when you visit the sites, whereas commission rates are less obvious.

Betfair

Betfair's commission starts at 5% and can be as low as 2%.  Commission is deducted from winnings only.

The commission rate is based on  a points system based on the cumulative total profit or loss of each bet you make.  The more this is the more points you get and the lower your commission becomes.  Your points balance does decay however at 15% per week so periods of reduced activity will see your rate go back up again..

The exact details and some examples can be found on the Betfair site in the Help section under "Commission points scheme". 

BetDaq

At BetDaq commission starts at 5% (nb increased from 5% as on 1/9/05) and can be reduced to 2%.

The commission also works on a decaying profit/loss points system very similar to Betfair although the levels of activity to reach the lower commission rates are less than those required by Betfair. 

RedBet

At RedBet commission is fixed at 3%.  While not the lowest, for most normal level punters this is as low as you are likely to get hence making it a competitive offer.

Next:  Try our Laying Page or sign up now at BetFair