An online betting exchange is a platform that provides customers to back and lay bets. The difference with regular bookmakers is that user do not bet against the bookmaker, but against each other. The betting exchanges only serve as a platform where bettors can meet. Because bettors bet against each other and not against a bookmaker there is almost no margin. However, bettors will have to pay a commission to the online betting exchange for using their platform.
Betfair is the largest online betting exchange. Since they have the highest number of visitors, they have the highest liquidity, which means that they will generally be able to offer the best odds. Betfair has built up an excellent reputation in the past decennium. They have a fast pay-out and they offer a wide range of bets. Therefore, Betfair is often considered as a must have for every arbitrage player
The downside of Betfair is that they use their market
power very effectively by asking high commissions. This means that even though
they have the best odds you might get a better price at another exchange since
they ask lower commissions. Betfair’s commission is dependent on the location
of the users and ranges between five and
seven percent on winning bets. Nonetheless, it is possible to get a discount on
your commission based on how much you play up to a 60 percent discount. However,
Betfair is known for charging her most successful punters a premium charge.
Other bookmakers pledged to never do this, also trying to lure in those successful
punters with big bankrolls.
Betdaq can be seen as the little brother of Betfair that charges a lower price than Betfair. Betdaq also has an excellent reputation and an easy to use site navigation. Their odds are very competitive and sometimes the effective odds of Betdaq are higher than Betfair, mainly because the commission they charge three to five percent commission on winning bets. Biggest downside of Betdaq is that they have a limited number of bet types. Furthermore, the bets they provided sometimes have a low liquidity, which makes it hard to place big bets.
Special action: Betdaq has launched a new joining offer - 0% commission for the first month + €200 in free bets. Click the banner below for more information.
Smarkets is basically the same as Betdaq, however they charge an even lower commission. They only charge two percent commission on winning bets. Smarkets does not have high liquidity and therefore is not always ideal to use. However, if this online betting exchange is able to grow further it is definitely the one with the most potential.
Matchbook is different from the other exchanges, because they charge a small commission of one percent over all bets and not only over winning bets. The online betting exchange has recently increased in popularity and they are one of my recommended picks when you are selecting your bookmakers and online betting exchanges.
When you surebet with ten bookmakers/betting exchanges I recommend picking two of the above online betting exchanges. It is not easy to say this is the best betting exchange for you. For example, the commissions at Smarkets are really low, however you could find it very frustrating when you have a large bankroll, that you are often not able to place the entire size of the bet that you had in mind, due to low liquidity. In my opinion Betfair and Matchbook are relatively safe picks, however feel free to experiment with the other online betting exchanges as well. Furthermore, I think for beginners Betdaq is currently a very good pick, due to their 0% commission in the first month.