If you have ever considered sports trading, Betfair is a company you will be familiar with. They are regarded as being one of the leading online betting exchanges thanks to the huge choice of betting markets and superior liquidity to many other betting exchanges available online today.
However, as part of their offering, Betfair charges a commission to their customers, something which they have always done but how does Betfair commissions work in 2020? Betfair takes a commission on the winnings of each bet you place when using their betting exchange. For example, based on a 5% commission, if you were to win £100 on a bet using the Betfair Exchange, you would lose £5 of that money to Betfair as a commission. However, should the bet you place to lose you will not have to pay anything.
In October 2019, Betfair made changes to their commission and bonus structure. These changes remain in place as we enter the new decade, and there are three reward plans for customers, including Rewards+, Rewards and Basic. The reward plan you choose will depend on how much you plan on using Betfair, but the Basic Plan is the one with the lowest commission rate at the time of writing.
When using the Basic Plan, you will be charged 2% commission on all winning bets at Betfair. However, if you choose to use the Basic Plan, you will not be able to take advantage of any ongoing promotions at Betfair. This includes promotions such as their ‘Money Back if Odds-On and Loses’ offer. You will also be denied access to the Betfair Cash Race and Best Odds Guaranteed. So, you must think carefully if the 2% commission you will receive by using this plan is best for you, considering you will be missing out on other promotions.
The Rewards Plan at Betfair means you will receive a £5 free bet to use on an accumulator each month and you will be eligible for the Betfair Cash Race. Both of these are unavailable to customers on the Basic Plan. Using the Rewards Plan, you will also receive one free play on Betfair’s ‘Beat the Drop’, but there is a catch, and that’s the commission.
When using the Rewards Plan, you will be charged 5% commission on all winning bets when using the Betfair Exchange. This is a higher rate than you would receive if using the Basic Plan, but you earn more rewards.
You are moving onto the final plan available at Betfair, which is Rewards + and the promotions and commission change again. Using this plan, should you make a loss on your exchange bets over a month, Betfair will refund 10% of those losses. Also, you will receive a £10 free chance to use on an accumulator that will be eligible to receive enhanced prizes when participating in the Betfair Cash Race. By becoming a Rewards+ member at Betfair, you will also get two free plays on ‘Beat The Drop’, but commission moves up to 8% on all winnings received when using the betting exchange.
So, by reviewing the three plans available above, you can see how the commission changes depending on which one you decide to use. Taking £100 winnings as an example, on the Basic plan you would pay £2 commission, on the Rewards Plan you would pay £5 and, on the Rewards+ plan, you would pay £8.
Which plan you decide to use will depend on how you use the Betfair Exchange. If you are planning on using Betfair regularly to make trades, it may be best to use the Basic Plan as you will lose less money on commission over time. However, you can start on one plan, and if it is not working for you, it’s possible to change to a different method by contacting the customer support team.
It is also worth noting that Betfair has a Premium Charge which is applicable depending on the activity in your account over the lifetime of the account. The criteria used when assessing the Premium Charge includes if your account is in profit, the total charges generated are less than 20% of gross profits, and you bet in more than 250 markets.
If you meet the conditions of the Premium Charge, at the end of each week you will be charged either the difference between 20% of the previous week’s gross profits and the total charges generated during the week or the difference between 20% of gross profits and the total costs created during the lifetime of the account.
Betfair will use the lesser of the two charges, but it pays to keep in mind the Premium Charge when working out the commission you will have to pay for using the Betfair Exchange.