Beginner Tips & Tricks

Commission vs liquidity – choosing the right betting exchange

The fact is that many matched bettors regularly use just one betting exchange to lay bets. This is because it’s easier to calculate profitability of trades with only one commission to consider, it also saves time by pooling all money in one place, and there’s less chance of making mistakes when you become so familiar with the layout of one exchanges and the many thousands of betting markets available.

However, we want to ask you how much time have you spent thinking about which betting exchange to go with, and what factors are most important to you?

The two most common factors are liquidity and commission. Starting with liquidity, there’s nothing more frustrating than pooling your money into one exchange to find that the markets you regularly bet on simply don’t have the liquidity you’re looking for. This was the case a few years ago with the likes of Smarkets, and Betdaq, however that definitely isn’t the case anymore. It’s even more frustrating when you have to increase the odds of your lay odds at a guaranteed loss just to get the bet matched.

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Betfair exchange has always had excellent liquidity in their markets, hence why they charge a higher commission rate. The platform is also very reliable and very very rarely corrupts or shuts down. I remember one time, over 4 years ago when Betfair crashed two days before Cheltenham festival 2013, and as a gesture of goodwill, Betfair charged 0% commission to all customers on all Cheltenham races on the first day. I have to say that was a fantastic day all round, and very profitable.

On the downside, as much as its more likely you’ll get your lay bet matched on betfair you pay the price in terms of commission paid. Betfair charge 5% as standard, and depending on how often you use their exchange and pay them in commission you earn reward points and they gradually reduce the commission charged. Other exchanges such as betdaq and smarkets charge lower commission and run promotions where they don’t charge any commission, for example on some premier league matches. Smarkets charge just 2% commission, and you may think 5% , 2%.. not much of a difference, not worth worrying about. However, if you want to place mug bets to keep your accounts open, and if you want to profit from best odds guaranteed on horse racing markets (very profitable and underrated) then you may find you are placing hundreds of pounds per day. 5% of say £300 is £15. Whereas 2% of £300 is £6. So that means £9 extra in your pocket, per day of trading. That will soon start to add up, and for that reason alone it is well worth considering going for an exchange like Smarkets.

It’s entirely up to you but it’s just something else which could slightly boost your profitability and that is obviously our main goal. Commission vs liquidity .. what’s more important to you?

 

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