Betting Exchanges

What Is A Betting Exchange?

A betting exchange is an online platform that allows individuals to bet against each other rather than against a traditional bookmaker. It operates as a marketplace where users can both back (bet for an outcome to happen) and lay (bet against an outcome to happen) on various sporting events, as well as other markets like politics or entertainment.

Unlike traditional bookmakers who set the odds, in a betting exchange, users can set their own odds or accept the existing odds offered by other users. This creates an environment where individuals can act as both the punter (placing a bet) and the bookmaker (accepting bets).

Betting exchanges are fundamental to Matched Betting as they allow players to hedge their bets by placing a lay bet on the exact outcome – whether it be a tennis match, a football team, or even a horse in a the Grand National.

Exchange Commission

Every betting exchange charges commission on bets that are matched. This is standard industry practice, as the exchange is providing a platform for you to be able to place your lay bets. You are not betting with the exchange itself, you are betting with other players – and so the commission is like a small fee that they take from the winner.

Commission is only ever payed on winning bets*. If a player’s bet loses, they will not have to pay any fee.
Note: A winning bet means that it wins on the exchange. So, if you are betting on England and hedging it on Betfair – if they lose the match, your lay bet on Betfair will have won. This is a winning bet (as far as the exchange side of things is concerned).

*Some exchanges have a pro tier where they will charge players commission for all bets, regardless of win/loss. This usually won’t affect Matched Bettors as it’s aimed at traders using the platform to profit.

The commission tiers on each exchange vary. Historically, Betfair has had the highest fee of 5%, with other websites such as Smarkets and Matchbook starting at 2%.

If you are using a Paid Matched Betting service then you will likely be offered 0% commission with some exchanges too – so long as you are a subscriber of the paid service.

Exchange Commission

Every betting exchange charges commission on bets that are matched. This is standard industry practice, as the exchange is providing a platform for you to be able to place your lay bets. You are not betting with the exchange itself, you are betting with other players – and so the commission is like a small fee that they take from the winner.

Commission is only ever payed on winning bets*. If a player’s bet loses, they will not have to pay any fee.
Note: A winning bet means that it wins on the exchange. So, if you are betting on England and hedging it on Betfair – if they lose the match, your lay bet on Betfair will have won. This is a winning bet (as far as the exchange side of things is concerned).

*Some exchanges have a pro tier where they will charge players commission for all bets, regardless of win/loss. This usually won’t affect Matched Bettors as it’s aimed at traders using the platform to profit.

The commission tiers on each exchange vary. Historically, Betfair has had the highest fee of 5%, with other websites such as Smarkets and Matchbook starting at 2%.

If you are using a Paid Matched Betting service then you will likely be offered 0% commission with some exchanges too – so long as you are a subscriber of the paid service.