Betfair Exchange is the industry's most popular betting exchange. Until recently, the exchange took some pretty hefty commissions. However, in response to new competition, Betfair have released a new commission model which involves commissions as low as 2% on your winning bets. In this article, we'll look at how commissions work on the Betfair Exchange, with the newly implemented rewards plans.
What Is the Commission on Betfair Exchange?
The lowest commission available on the Betfair Exchange is 2%. This applies to all winning bets, and is calculated based on net winnings, which is the total profit from a bet plus the original stake. In other words, if you win a £100 bet at 1.5 odds, you'll pay 2% of £150, or £3, in commission. The commission on Betfair Exchange can rise to 5% or 8% if you choose to sign up for one of Betfair's new rewards plans. While this might not sound so attractive, it can be a good trade-off for casual punters. Of course, if you have a betting strategy that profits consistently, you're better off sticking with the 2% commission.
Betfair Rewards Plans
As mentioned, commissions on the Betfair Exchange depend on which of Betfair's rewards plans you are signed up to. There are a total of three rewards plans. While they cost nothing to sign up for, they each have their own pros and cons.
Betfair's Basic rewards plan is exactly what it sounds like: basic. This plan offers no rewards; in fact, it even disqualifies you from some of Betfair's promotional offers. However, the Basic rewards plan allows you to make use of the minimum, 2% commission rate.
The next rewards plan offered by Betfair is called Rewards. This plan will increase your Exchange commission to 5%, which is a big jump. In exchange, Betfair provides a fair few bonuses for users of this plan. First of all, users on this plan will get a free £5 accumulator bet every month. What's more, they'll get 10 free spins a month on Betfair's Age of Gods. They'll also get access to the Cash Race promotion. Last but not least, users on this plan will get to play Betfair's Beat the Drop for free, once a month, with the chance to win up to £32,000. There's no doubt about it: this plan is definitely less favourable for professional sports betters, who'll lose out on a further 3% of their winnings for mediocre rewards. But for the casual punter, with just a few hundred pounds to play with, this plan is a lot more interesting.
The third and final rewards plan on Betfair is called Rewards+, or Rewards Plus. This plan increases your commission rate to 8%, but the rewards are even better. Perhaps the most interesting reward on this plan is that users will get 10% back on their losses, on a monthly basis, per the terms and conditions. Aside from that, users on this plan get similar, but more significant benefits to users on the Rewards plan. This includes a free £10 accumulator every month, 25 free spins every month, extra prizes for the Cash Race promotion, and two free plays of Beat the Drop every month.
Once again, the Rewards+ plan isn't too interesting if you consistently profit from sports betting. However, it can be beneficial for casual punters, who don't always turn a profit.
Which Betfair Rewards Plan Should You Choose?
So, we've looked at the three rewards plans offered by Betfair and how they affect your commission rate on the Betfair Exchange. But which plan should you choose? If you have a betting system that allows you to make more than £200 a month, like Hinto, we'd absolutely recommend sticking with the Basic plan. If you mainly bet for fun or make less than that, we think the Rewards+ plan is the way to go, because of all the fun and exciting rewards it offers. Truth be told, we can't see too many reasons to go for the middle-tier Rewards plan. Either you're making some decent money with sports betting, in which case you'll want the lowest commission, or you're not, in which case you'll want all the rewards you can get.
How Do Rewards Work with Betfair Premium Charge?
Unfortunately, there's a separate commission for the most profitable Betfair users called Betfair Premium Charge. No matter which rewards plan you choose, you'll be hit with the Premium Charge if you meet certain conditions, which are related to how much you profit versus the amount of commission you pay.
How to Reduce Betfair Exchange Commissions
If you're already on Betfair's Basic rewards plan, there's nothing you can do to reduce your commission rate any further. If you're on either of the other two rewards plans, you can of course change to the Basic plan to pay lower commissions. As for Premium Charge, there's unfortunately no feasible way to get around it, as we explain in this article.
Forget Commissions and Improve Your Results!
If you're getting caught up with Betfair's commissions, it might be because you're not seeing the betting results you had hoped for. Our betting algorithm, Hinto, allows you to turn a real profit on sports betting, even after accounting for Betfair's fee! Based on years of sporting data and advanced machine learning techniques, we've perfected a strategy for finding the best sports bets out there.
Commissions on the Betfair Exchange can be as low as 2% of your net winnings, if you opt for the Basic rewards plan. There are a total of three reward plans, and the other two sacrifice a low commission rate for monthly rewards and promotions. In general, we recommend sticking with the commission-friendly Basic plan if you're a profitable better; otherwise, you can consider the Rewards+ plan for some more excitement in your punting adventures.In any case, don't get too caught up with how much commission you're paying. If you're using the right betting system, like Hinto, you can turn a monthly profit even with the heftiest commissions!