A betting exchanges are a type of online sports trading platform where you can speculate buy backing or laying an event in a similar way to going long or short in the financial markets.
There are currently four betting exchanges in the UK, Betfair, Smarkets, Matchbook & Betdaq.
| Name | Logo | Commission | Welcome Offer | GMG Rating | Customer Reviews | CTA | Feature | Expand |
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Commission 2% on winning bets |
Welcome Offer £10 free bet |
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Betdaq Betting Exchange ReviewProvider: Betdaq Verdict: Betdaq was founded in 2000 by Irish businessman, Dermot Desmond, and started trading in September 2001. Since then, the business has grown to become the second-largest betting exchange operator in the UK. Summary BetDaq is the second largest betting exchange behind industry leader Betfair. Betdaq has recently reduced its commission rates to undercut Betfair, therefore giving punters better odds than Betfair as well as better odds than traditional fixed odds betting. The BetDaq betting exchange has one of the widest selections of markets available and has the infrastructure of owners Ladbrokes as well as a decent welcome offer for new betting exchange betters. They handle more than £75 million worth of bets each week, are the largest betting exchange technology provider in the world and operate several sports betting brokerages and websites. Betdaq is regulated by the UK Gambling Commission and offer one of the best commission rates in the industry. There is a base rate commission charge of just 2%, or 0% on certain markets. Currently, they offer a welcome bonus of £10 once you bet an initial £10 stake. Pros
Cons
Overall4.1 |
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Commission 2% on net profits |
Welcome Offer £10 bonus |
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Remitly Review Provider: Remitly Verdict: Remitly is a low-cost money transfer app that was founded in 2011. Since then it has grown to service over 4.5 million active customers transferring money to 13 different countries. Remitly went public in 2021, and it’s shares are listed on the NASDAQ exchange valuing the company at around $4.9bn. Summary Remitly is a cheap and easy way to send small amounts of money abroad. Especially if you are a new customer, as you get better exchange rates on your first £1,000 sent abroad. Pros
Cons
Overall3.8 |
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Commission 2% on net profits |
Welcome Offer 0% commission |
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Commission 5% on winning bets |
Welcome Offer £10 free bet |
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Customer Reviews |
Regulator:
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Betfair Betting Exchange ReviewProvider: Betfair Verdict: The Betfair betting exchange was founded in 2000 by business partners Andrew Black and Edward Wray. Since then, they have grown to be the biggest betting exchange platform in the world, with over 4 million customers, and they were the first betting exchange to float on the London Stock Exchange. Summary Betfair are one of the original betting exchanges and still the best. Betfair offer the widest range of betting exchange markets, the best liquidity, market depth, bet type options as well as a decent welcome offer for new punters. Betfair revolutionised the way people are able to bet on sports by allowing them to lay bets and essentially act as bookie as well as punter and win when their bet lose. In 2016 Betfair merged with Paddy Power, and in 2018 they merged with FanDuel in America. Betfair now sits as part of Flutter Entertainment plc, an international sports betting and gaming operator. Betfair is regulated by several regulatory bodies around the world, but predominantly by the UK Gambling Commission, and the Malta Gaming Authority. Betfair charges a basic commission rate of 5% on all winning bets and currently has a welcome offer to claim £40 once you have bet £10. Pros
Cons
Overall4 |
The first betting exchange sites to hit the gambling market were Matchbook, Flutter and Betfair. But in 2001, Flutter and Betfair merged. They kept the Betfair brand and name and have since maintained their position as the leading betting exchange platform in the industry.
Matchbook continues to enjoy a loyal customer base, but Betdaq is considered to be the second largest betting exchange, with an estimated 7% share of the betting exchange market. Betdaq launched in 2000, before trading began in 2001. They were bought by Ladbrokes in 2013, who now have their own exchange platform, and continue to rival Betfair thanks to their popular marketing campaigns. Smarkets is the newest kid on the betting exchange market but is growing year on year.
What is a betting exchange?
People often ask, ‘What is a betting exchange?’ Simply, it is a platform that allows people to bet against each other rather than a bookmaker with gamblers setting the odds or requesting odds from fellow gamblers. For example, people can buy (also known as “back”) and sell (also known as “lay”) the outcome of an event, and they can trade in-play to cut their losses or to secure a profit.
Traditional bookmakers go head-to-head with gamblers on the markets offered, but a betting exchange provides the platform for its customers to bet against each other, and they take a small commission on any winnings for the service. Leading betting exchanges include Betfair, Betdaq, Smarkets, and Matchbook.
Betting exchanges charge their customers commission on winning bets, which is something traditional bookmakers don’t do. However, one of the benefits in using a betting exchange is that you can often get better odds as they are set by fellow customers. Access to these better odds, less the commission being charged, usually works out as a better deal, rather than going head-to-head with the bookmakers and sportsbooks.
The betting exchange commission rates charged by betting exchange platforms do vary from company to company, both in the percentage amount charged, and how the commission rate is calculated.
Betfair charge a base rate commission fee of 5%, whilst Betdaq and Smarkets each charge a commission rate of just 2%.