Betfair takes a commission for every winning bet placed on the exchange associated with your account. Depending on where you live and the Betfair Exchange package you chose, your commission rate may vary.
As Betfair only takes commission on winning bets, you won’t be charged commission on bets that let you down.
Read on to see what is Betfair Exchange commission.
What Is The Betfair Commission
Essentially, commission on the Betfair Exchange refers to charges on winning bets. How much commission do Betfair take depends on where you live and whether or not you’re currently opted-in to a promotional offer.
For customers in the UK & Ireland, the standard market rate stands at 5%. You may earn a discount rate if you participate in any of Betfair’s offers.
See the formula used by Betfair to work out your commission below.
How Much Commission Do Betfair Take – The Formula
Here is how Betfair works out your commission:
- Net Winnings x Market Base Rate x (100% – Discount Rate) = Your Commission
- You have £500 net winnings.
- The market base rate is 5%.
- You also have a 20% discount rate.
- In this instance, the formula reads as: £500 x 5% x (100% – 20%).
The discount rate varies depending on the number of Betfair Points in your account. Points are earned by placing bets.
Why Do Betfair Charge Commission
There’s no beating around the bush with the answer here. Betfair charges a commission to make money from winning players.
However, players at Betfair will likely never have to pay any other charges on the exchange other than the commission. While paying a commission can be frustrating for bettors, the service provided by Betfair more than makes up for the extra fee.
You can bring your commission down by placing bets and earning a discounted rate. You’ll earn 1 point for every 10p wagered.
It’s worth noting that Betfair uses something called a Weekly Decay. The Weekly Decay reduces your Betfair Points balance by 15% each time you use a discount rate.
What Is My Betfair Commission
Your Betfair commission is calculated using the formula we mentioned earlier: Net Winnings x Market Base Rate x (100% – Discount Rate).
However, your Discount Rate will stop growing beyond 20% if you have not yet completed Know Your Customer checks on the site. Moreover, your commission will change depending on the country from which you’re betting on the Betfair Exchange.
As Betfair doesn’t offer a discount rate in some countries, you may find that your commission is greater in value compared to other nations’ bettors.
As every bet and account is different, the amount of commission taken changes all the time.