How much commission you’re charged depends on a number of things, not least the betting exchange you’re using. The most popular is comfortably the Betfair Exchange and right here you can find all you need to know about exchange commission, how it works and what you’ll be charged.
What is Betfair Exchange Commission?
The way exchanges make their money is via commission. What that ultimately means is they take a percentage of any winning bet in exchange for you using your platform to place your bets against other players.
So, if you were to place a bet on a football team to win for example, and they do then you will be changed permission. If your bet was to lose, you wouldn’t be charged a commission, with your losing stake being delivered to either the player that took your odds or the play who’s odds you played.
It’s pretty simple, the commission is the small cut Betfair will take when you win a bet on their exchange.
How Betfair Exchange Commission Works & Their Base Rate
This is calculated relatively easily. The base rate in which Betfair Exchange charges commission is 5% currently, which is higher than many of the brand’s competitors.
The way they calculate their commission isn’t a difficult equation to understand with 5% deducted from a player’s net winnings.
In some cases you will also enjoy a player discount, which is also taken into account at this stage. We will come to this later, though.
The equation Betfair uses is as follows:
Net Winnings x 5% x (1- X% Discount Rate) = Commission
For example, let’s say you were to place a bet on a Premier League game and you were to enjoy net winnings of £40. In this instance you don’t yet have a discount rate. The commission you pay would be calculated as follows:
£40 x 5% x 1 = £2
This therefore means the commission you’d pay would be £2 and therefore take winnings of £38.
If you were to lose the bet, you would not pay any commission. However, you do still earn Betfair Points.
Discount Betfair Exchange Commission Rates
Discount is offered to customers in the Betfair Exchange. This is based around the number of Betfair Points you have earned.
Betfair Points are given to customers every time they play, with players earning 1 Betfair Point for every 10p in commission paid. Losing bets also earn Betfair Points based upon the commission that would have been paid.
How much discount is offered is then determined by how many points you have, building up over time.
Discounts begin when you reach 1,000 Betfair Points, where 2% is discounted. To earn a 10% discount you must have earned over 7,000 points.
This is then subtracted from your commission. So, using the example above, let’s add the discount rate to determine calculate a new commission.
£40 x 5% x (1 – 10%) = £1.80
Therefore, you would enjoy a 20p lower commission fee in this case.
Discount Rates are Offered As Follows:
- 2%: 1,000 Points
- 4%: 2,500 Points
- 6%: 4,000 Points
- 8%: 5,500 Points
- 10%: 7,000 Points
- 12%: 9,000 Points
- 14%: 11,000 Points
- 16%: 13,000 Points
- 18%: 15,000 Points
- 20%: 17,000 Points
- 22%: 19,000 Points
- 24%: 21,000 Points
- 26%: 23,000 Points
- 28%: 26,000 Points
- 30%: 29,000 Points
- 32%: 32,000 Points
- 34%: 36,000 Points
- 36%: 40,000 Points
- 38%: 44,000 Points
- 40%: 49,000 Points
- 42%: 55,000 Points
- 44%: 61,000 Points
- 46%: 67,000 Points
- 48%: 73,000 Points
- 50%: 80,000 Points
- 52%: 88,000 Points
- 54%: 96,000 Points
- 56%: 108,000 Points
- 58%: 126,000 Points
- 60%: 150,000 Points
Unless you have completed Betfair’s identity and verification requirements, discount will be capped at 20%.