Betting exchanges are gaining a lot of popularity and it’s no surprise given the popularity and never-ending sporting events happening around the world. There was a time you could only take a punt with bookmakers, however betting exchanges offer a fantastic alternative.
What is a Betting Exchange?
A betting exchange is a marketplace for customers to place bets on the outcome of an event(s). Betting exchanges offer a similar service to bookmakers but with a few differences:
1. You can buy and sell the outcome of an event.
2. You can trade in real-time throughout an event.
3. You can trade out to cut your losses or lock in profit.
Betting exchanges generate revenue by charging a small commission fee whereas bookmakers generate billions in revenue by offering less efficient odds.
The Main Betting Exchanges
The world’s largest betting exchange and the largest online betting company in the UK. Betfair is a great exchange to start with as it’s very popular and there’s usually enough liquidity in the market place your bet. Betfair’s commission begins at 5% – they also offer a reward scheme which will lower the commission you pay over time. To understand more about the reward scheme, Click here
A great alternative to Betfair as you’re only charged 2% commission which is great for maximising your profits. However, at times, Smarkets have less liquidity compared to Betfair and fewer markets to participate in.
This exchange is perfect for football events across Europe and horse racing – there is a good amount of liquidity. Use Smarkets whenever you can.
Smarkets are offering a free £10 bonus when you join. Sign up now
Betdaq’s commission starts at 5% and can lower depending on how often you use them.
Betdaq recently introduced a discounted commission of 2%, however, this is only if you fill a gap in the market.
Overall Betdaq doesn’t have a comparative advantage over Betfair or Smarkets so it’s best to not use this exchange often.
Betdaq is offering £25 in free bets. Sign up here
This exchange only charges 1% commission on both winnings and losses. Also, Matchbook has 0% commission for the Twenty 20 Cricket World Cup. On the other hand, Matchbook usually has very low liquidity across the market. Matchbook also doesn’t offer horse racing which means we should only use this exchange mainly for sporting events, particularly European football.
Matchbook is offering £30 welcome bonus. Sign up here
The main exchanges we suggest you use are Betfair and Smarkets, usually in favor of Smarkets because their charge a very low 2% commission, however if you don’t find enough liquidity and good lay odds in Smarkets then use Betfair.
With the UEFA European cup this summer, plus the Wimbledon it’s never been a betting time to get involved with betting exchanges.