Exchange Commission Explained

Exchange commission is the fee a betting exchange charges on your winnings. Here’s how it’s worked out on a back bet, a lay bet and a trade, and how to compare rates.

Instead of building a margin into the odds, an exchange takes a percentage of your net profit in each market. It doesn’t charge on your stake, and if you lose overall in a market, you pay nothing.

One major exchange charges up to 5% as standard in the UK, and several others advertise 2%. Rates change, so read your exchange’s current terms.

For example, you back a team for £20 at 3.0, and it wins. That’s £40 profit. 5% commission takes £2, so you keep £38.

So 3.0 at 5% pays the same as 2.90 at a bookmaker. At 2%, it’s worth 2.96. The gap grows with the odds, so commission matters more on longer prices.

When you lay, you’re the bookmaker. Lay a £20 stake at 3.0, and your liability is £40. If the team loses, you win £20, minus 5%, so £19.

Then on a trade, back £20 at 3.0, and lay £24 at 2.5. That locks in £4 either way. You pay 5% just once, 20p, and keep £3.80.

That looks small, but scalpers make hundreds of trades, so commission adds up. Always record your profit after commission, because a method that wins before it can lose after it.

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