What Is a Betting Exchange and How to Choose Best One Site?
Did you know you can bet against an outcome? This means as a player, you can also be a bookmaker. This is the basic idea of betting exchange. In a betting exchange, you can bet for or against an outcome. Yes, you are used to betting for an outcome, but here you have a chance to bet against an outcome.
Nowadays, everything is online, including betting exchange sites. These sites offer a platform for players to place bets on various outcomes. This article will give you comprehensive information on the top-ranked betting exchange sites. You will also know how a betting exchange works and get answers to frequently asked questions.
This is a big name in the betting exchange world. It was launched in 2000, and for 21 years, it has had a wonderful customer base. It has many users backing and laying bets every time of the day. The website is easy to navigate, and a beginner will understand the interface in a few minutes. It has a 5% commission on every win. Although the commission is high, it has the most loyal users.
Loyal users mean you can easily find someone to pair your bet with. The website is well arranged with an excellent sportsbook that pushes most bets your way. It also offers matched betting and live betting platforms. All these good offers enable you to win, but the 5% commission is too high. If possible, it should be reduced to 2%.
Ladbrokes and Betdaq fall under one big manager, Ladbrokes Coral Umbrella. It is one of the best online betting exchange sites. It has a wonderful and easy-to-navigate website. The website is well arranged with an excellent sportsbook. Betdaq and Ladbrokes are linked, helping with the liquidity of money.
It also has a good mobile app that is supported by various operating systems. It offers a 5% commission on every win. It has various ways of depositing and withdrawing money. And it is managed by a big company, so your money is always safe. Ladbrokes is ranked below Betdaq because it does not have the plug-in tool to access better market insights. The 5% commission is also a drawback; it should be reduced to about 2%.
This is an exchange betting site that is shaking the big companies in the betting exchange world. This is because Smarkets values its customers and users. It gives them good offers that make you want more. First, the website is well organized with easy to use interface. The website uses simple graphics to open it on any device.
It is also a decent mobile application that is small. It allows a 2% commission on every win, which is a generous offer. Sometimes you can get a 1% commission if you place huge stakes. The best part is managing the prices in a very fluid market. This is helpful when placing in-play events. The limitation is that some bets are not matched in time.
Pros & Cons
An abundance of games for betting with democratic results.
A very trustworthy and reliable platform for an online betting exchange.
Extremely low commission charge (2%).
Allows more than four payment options.
Customers can place odds without the role of a bookie.
For 20 years Betdaq betting exchange site has been operating. It has an excellent customer base that earns them good money on every win. It offers a standard 2% commission on every win. It has the best easy to navigate websites and good graphics. You can use any web browser to access it. It also has a user-friendly mobile app. The mobile app is small and will not occupy a lot of your internal storage. Sometimes Betdaq offers 0% commission for a limited period.
This company is now owned by Ladbrokes Coral Group, a recognized company in the UK. With such a big company in management, you are assured of a safe deposit and cash withdrawal. However, the company mainly offers less mainstream games and less flexible events. This makes it hard for users to find matches for their bets. They have to work on football because it has many bettors.
This is the most recent betting exchange site. It was launched to the public in October this year. It is a new site with the best user-friendly interface. It has a well-developed mobile app that allows users to enjoy every moment. Beginners can easily understand the straightforward website. The best part about matchbook is how you can enjoy thirty days of 0% commission after registration. This is the most prolonged 0% period in betting exchange history.
Matchbook is getting many bettors because it good risk-free period. And you get £15 cashback as a welcome offer. These two offers have attracted more than one million users in less than one month. You can access your matchbook account almost anywhere, including the most compatible mobile app. Matchbook allows you to use various methods to deposit or withdraw money. The downside of a matchbook is the huge sum of £500 for minimum withdraw using direct to bank transfer.
Betting Exchange Commission Rates Comparison
You can see that each betting exchange site has different commission rates. Including some are zero percent. Some charge the commission on the winnings, while others charge on the net winnings.
Betfair
Betfair charges a 5% commission on every win. But it has a discounting rate that lowers the whole commission. On every bet you place, you get points that sum up to the discount rate. The discount rate is subtracted from the 5% hence increasing your wins. For example, if you win £500 and 5% commission with a 10% discount rate, you will receive £477.5 as your total wins. (£500 – 5%= 25) – 10%= £22.5).
Smarkets
It charges a 2% commission on wins, but it is based on the profit. So if you win £100, you will receive £98. However, sometimes Smarkets offers a 1% commission on wins or losses. So the 1% charge depends on the outcome.
Betdaq
This one also charges a 2% commission on net profits only. It is considered to be the best betting exchange site because it only charges commission on net profits but not losses.
Matchbook
This site offers 0% commission for the first-time registration for 30 days. You will be receiving full profits on all wins you make for this period. But after the grace period, you are charged a commission of 2% on all net wins.
Here is how the commission rates affect your total wins on different betting exchange sites. Take an example of backing on an outcome of 3.00 odds and £100 stake to win £200.
Betting exchange site
Bet wins less commission
Bet loses
Betfair
£200 – 5% = £190
-£100
Smarkets
£200 – 5% = £190
-£100
Betdaq
£200 – 5% = £190
-£100
Matchbook
£200 – 5% = £190
-£100
What is Betting Exchange?
Betting exchange is the trend in the recent world of betting. Online betting exchange sites are a marketplace where you can bet on discrete events. Discrete events mean each event happens at a specific instant. As a gambler, you can buy or sell the outcome in real-time. With bet exchange, you can cut in your loss or make a profit.
Many people shy away from this idea because it seems complex, but it is the best way to win a sports bet. It offers you the best odds and a greater chance to win a bet. Traditional betting allows you to only bet for an outcome. But in a betting exchange, you can bet for or against an outcome. So it is more flexible than standard betting.
How Does Betting Exchange Work?
First of all, you have to note that there must be two players before any bet is practical. One player backs the bet while the other one lays the bet. You will understand this well with an example. For instance, there is a football match between Chelsea and arsenal. And you are sure that Chelsea will win. You can lay a bet that Arsenal wins the match.
For the betting exchange to be practical, you have to find another player that suggests Arsenal will win. You will only receive your profit from the bet if arsenal loses the game. On the other hand, if Arsenal wins, you have to pay the other player according to the odds. The betting exchange site only cuts a little commission on the person that wins the bet.
Backing
This is the traditional bookmaker way of betting. It is when you bet for some specific outcome. In backing a bet the amount of stake is multiplied by the odds. For example, if you bet for Chelsea with £10 on 2.0 odds, then you will win £20. It is the same as normal sports betting, but you bet against another bettor instead of a bookmaker.
Laying
This is when you bet against an outcome of a specific event. In general, is when you become the bookmaker and want the other party to lose so that you gain some profits. With bet laying, you have a chance to propose odds to the other player. Most betting exchange sites have different colors for backing and laying a bet.
Laying a bet is the best thing because you have a double chance to win the bet. For example, there is a game between Chelsea and Manchester united. And you are sure Manchester will win, but you bet that Chelsea will lose. Then that is laying a bet. So if Manchester wins or the match ends up in a draw, you still win the bet.
Experienced players in betting exchanges suggest you use the market value odds because your odds can be exaggerated. You must also lay a bet that has been backed by other players because the bet will only be valid when there are two players.
Matched Betting
This is a betting technique that allows a bettor to make a profit from the free bets offered by the bookmaker. It is a simple but complex idea. It needs an account with two or more betting exchanges and bookmakers. The free bet is placed and the other betting exchanges try to hedge all possible outcomes. Doing so will maintain the value of the free bet.
Simply place a back bet at a bookmaker on the free bet and place a laying bet at the betting exchange. It is also called double betting because you can both back and lay a bet and whichever outcome you will win a bet. Ensure you create two accounts, one with the bookmarker and the other one with a betting exchange.
Betting Exchange Trading Tips and Strategies
Surely, betting exchange is a complex idea but it is also the best way to win a bet. The best way to view a betting exchange site is as if it is a stocks exchange. Where you buy and sell stocks (bets) according to your predictions and in the end, you gain profits. You must have some strategies and tips in your mind for a successful betting exchange. Below are some of them.
Have more than one exchange account
Bet exchange is the best option in gambling but you still need to be a gambler for gamblers. This means that you must take more risks to get good returns. The best betting exchange sites require you to place one or two bets on your account. You cannot easily win a bet on a betting exchange sometimes with this option.
You need to place several correct scores on a different market. It does not mean you have different accounts on different sites. But you can create different accounts on one betting exchange site. The good thing is that the username can be different, but the password can be similar. Use one password on all of your accounts to avoid confusion.
Multiple accounts increase your chances to win a bet. Because you can back a bet on one account and lay a bet on the other account. However, this is a high-risk-high return type of bet. You will use more money as a stake, but at least you will get some return out of the many bets.
Choose draw or nil-nil on competitive matches
The good thing with betting exchange is that you can easily get a double chance if you lay a bet. Football has the biggest market in betting and you can choose to draw when two strong teams are playing. Draw always has the highest odds including the 0-0 option. However, this rarely happens, but you must take risks as a gambler.
Always lay the likely to lose
Search for matches that are obvious one side is stronger than the other and lay the bet on the weak side. Laying a bet has the best odds and also gives you a chance to increase or reduce the odds. Always have hope that the underdog will not win and gain some profits. This is a good betting exchange tip but requires you to have courage.
Use in-play option and cashouts
Not all betting exchange sites but most of them offer in-play, live streaming, and cash-out options. Nowadays if you want many users on your betting exchange site to have such options. These features have some benefit to the player and will enable him/her to win the bet. The live streaming option is the best because it allows you to cash out before the game ends.
Sports Betting Exchange VS Sportsbooks
A sportsbook is a well-established place where a gambler can place various sports bets. A sportsbook has various betting events outlined giving you a chance to choose one out of the long list. In general, this is a place where bets can be made on sports events. A sportsbook has events that will happen soon.
On the other hand betting exchange is a type of betting that allows you to back or lay a bet. This is the current system of betting that most gamblers are running to. There are online betting exchange sites that allow you to bet for or against some discrete events. With a betting exchange, you can trade in real-time to gain profits or cut on your losses.
The online betting exchange site cuts some percentage on your wins. Most sites' commissions range between 2 and 5 percent. Some of the sites have a discount rate on the commission depending on the amount of risk you are taking. So the more the risk, the bigger the discount rate you are given.
This means that the best betting exchange sites have a sportsbook that helps users to place bets. A sportsbook on a betting exchange site will help the player to place a winning bet. Unlike the traditional bookmaker, betting exchange site owners want you to win a bet. Because that is the only way they will get a commission.
Conclusion
Betting exchange is complex, but the few who understand it are running towards the idea. Betting exchange sites are platforms that allow players to place backing and laying bets. This article has given you the best betting exchange sites and the commission each site charges to users.
Study the information above and choose the best betting exchange site available. You will get a chance to set your odds hence extra profits.
FAQs
How does a betting exchange work?
Surely this is the most asked question. A betting exchange is a type of betting that has three parties involved. There are two players and the service provider. The service provider is the person that creates a neutral platform for players to set their bets. Nowadays service providers are found online with the best bonus options.
The way betting exchange works is somehow complex but just know you can bet for or against an outcome. Place a bet and wait for another person to place a matching bet. One player places the back bet while the other one lays the bet. You are allowed to choose odds. The best thing is the way you can write your odds.
Do you pay taxes on betting exchange sites?
Taxes are something that follows the constitution of a country. A betting exchange is a form of gambling and most companies pay taxes. Any person or company that generates income has to pay taxes. But these taxes are pushed to the player through the commission. A little part of the commission you are charged by the betting exchange site is paid to the government as taxes.
How many betting exchanges are there?
This is a hard question to answer but the common sites are five. These are; matchbook, betfair, smarkets, betdaq and Ladbrokers. Some of these sites were launched over 15 years ago while some are very recent, like Matchbook. Customer service is what attracts most users to your website. The best betting exchange site depends on personal preference. But the percentage of commission is what attracts many people.
Which is the best betting exchange for backing with high stake liquidity?
Backing a bet is the normal traditional betting where you have to bet for a specific outcome. The best betting exchange site is a personal preference but remember the commission. The amount of commission on every win is what attracts most users to your site. The compatibility of your website is another consideration.
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