Betting exchanges are online sites where one can wager against fellow punters on various events. The difference between these sites and the regular bookmakers exists in how money is made. With the latter, inefficient odds are the way to go. They make sure that the odds given on a particular event favor them in one way or another. Betting exchanges, on the other hand, charge fees depending on the agreement they make with their clients.
They have two types of wagers, lay bets, and black bets. Lay bets are a prediction of what will not happen while black bets predict the occurrence of an event. Regardless of the type you settle for, you will have to surrender a small commission on all winnings. Commissions are by far the most used parameter in the comparison of betting exchange sites. Some of the best sites are discussed below.
It is a crime to talk about this topic without mentioning Betfair. Having about 7% of the market share, it is one of the most popular betting exchanges. It has the largest number of markets and since they are very active, getting a stake is quite a walk in the park. The number of its members gives assurance when it comes to liquidity. The commission at this site is 5% and this decreases as the bet increases. With the smallest deposit being £25 and the smallest bet allowed £2, one gets the chance to test their wagering strategies. The main markets here are football and horseracing but others like tennis and golf are also available. To learn more about the different available exchanges and each of their advantages check the reviews for all betting exchanges in the UK
We cannot leave out the various odds of betting in this discussion. Even after going through reviews for all betting exchanges in the UK, it is the odds that determine how one fares in the wagering industry. Everton has an odd of 7/5 against Arsenal while Arsenal has 2/1 at Betfair. Manchester City against Leicester has an odd of 1.39 at Ladbrokes while Manchester United has 1.86 against Watford at Betfair.
Betfair is not the only way to go when it comes to betting exchanges. As a punter, you can also settle on Matchbook. With this bookmaker, one gets to enjoy extremely low commissions. If you accept an offer that already exists in the market, you get a rate of just 1.5%. If the offer is your own, the commission is 0.75%. However, Matchbook’s commissions cut both ways. Whether one registers a win or a loss, it will be subjected to the stated commission.
Ladbrokes is another site that many experienced punters out there will recommend. Although its popularity mainly comes from being a poker site and a sports bookmaker, it also offers a betting exchange. This feature was added after the company bought Betdaq sports exchange thus bets are exchanged against Betdaq clients. A £25 free bet is guaranteed upon signing up. Just like most of the other betting sites, the commission fee is 5% and it also decreases with increasing wager size.
Smarkets is also another giant in this industry. With a flat commission rate of 2% on all transactions, its impact is being felt. The flat rate makes it suitable especially for small bets which other sites like Betfair charge 5%. It is a pure exchange site meaning that a lot is invested in ensuring they thrive in that area. The software quality and user interface are on point just like one would expect from a leading bookmaker. Nevertheless, this site lacks public API, which translates to a lack of integration, as there are no products. Moreover, Smarkets’ markets are limited compared to its competitors.
Exchanges are a revolution in the wagering industry. One is given a chance to become a bookmaker meaning that you can give odds to the occurrence of an outcome. This comes with several disadvantages as well. First and foremost, one doesn’t get to enjoy the BOG (Best Odds Guaranteed) benefit. This is because there is no selection one commits to. If for instance you back a horse with an odd of 10.5 and the starting price declare the odds at 14.5, you have to settle for the 10.5 with betting exchanges. Again, though there are free bets once in a while, the rewards and incentives offered by traditional bookmakers are way better. Before settling on what to use, ensure you go through the terms and conditions.Updated Date: 30 December 2019, 15:51