Higher rate premium charge

[rik]

Betfair should have introduced it on all activities going forward. Instead, they made it on your lifetime profits, of which mine was substantial after 11 years in the market.

My commission paid % was under 5% when it was introduced, so I would have to make up over 35% on all my profits prior to its introduction. Which is more or less impossible.

Not really? Section „other charges“ makes up the difference to 40% anyway so going forward it doesnt matter if your 40% baseline is made up of actual paid commission or other charges.
If from now on you are generating > 40% you wont pay a cent regardless if your overall generated is 11% or 40

Not exactly. Because at PC2 they calculate your base rate before Other Changes. So if your base is less than 5% you pay 60%, between 5-10, 50% and only over 10% do you pay the 40%.

I said it doesnt matter if your overall generated is 11 or 40% didnt I, noone sane would stay below 10% generated anyway.
My point was Peter saying you have to make up 35% difference from 11 years of previous betting to avoid premium charge which I dont think is true, you simply have to generate more than 40% going forward otherwise youll pay the difference to 40.
Im on 26% overall generated and had periods of dropping out as „other charges“ would bump my percentage to 41 or 42.
You cant really expext Betfair to say you got 250k allowance from the day of premium charge was introduced, and the premise wouldnt change anyway, you still would have to generate more than 40% going forward it doesnt make a difference.

[jamesedwards]

Not really? Section „other charges“ makes up the difference to 40% anyway so going forward it doesnt matter if your 40% baseline is made up of actual paid commission or other charges.
If from now on you are generating > 40% you wont pay a cent regardless if your overall generated is 11% or 40

Not exactly. Because at PC2 they calculate your base rate before Other Changes. So if your base is less than 5% you pay 60%, between 5-10, 50% and only over 10% do you pay the 40%.

I said it doesnt matter if your overall generated is 11 or 40% didnt I, noone sane would stay below 10% generated anyway.
My point was Peter saying you have to make up 35% difference from 11 years of previous betting to avoid premium charge which I dont think is true, you simply have to generate more than 40% going forward otherwise youll pay the difference to 40.
Im on 26% overall generated and had periods of dropping out as „other charges“ would bump my percentage to 41 or 42.
You cant really expext Betfair to say you got 250k allowance from the day of premium charge was introduced, and the premise wouldnt change anyway, you still would have to generate more than 40% going forward it doesnt make a difference.

Depends on your trading style. Some trading styles naturally generate a high lifetime com% and avoiding PC is relatively easy. But if your main trading is a successful scalping automation, as just one example, then you would expect almost all markets to be profitable and therefore your lifetime com% would be very low and you would have to pay almost all the relevant Premium Charge every week. I imagine Peter did a lot of scalping in his youth!

[The Silk Run]

I'm rather confused what all the discussion on here about Premium Charge is. I thought all the Professionals simply arbitrage their transactions, or am I missing something !!!

[Bog]

I'm rather confused what all the discussion on here about Premium Charge is. I thought all the Professionals simply arbitrage their transactions, or am I missing something !!!

Sounds easy in theory, but... How do yo do that? In what markets?

[rik]

Cant control which side is winning with arbing, pay double if Betfair side wins

[Westerner]

Cant control which side is winning with arbing, pay double if Betfair side wins

THIS

[Euler]

You win, you lose, you just can't choose!

[Naffman]

I'm rather confused what all the discussion on here about Premium Charge is. I thought all the Professionals simply arbitrage their transactions, or am I missing something !!!

Sounds easy in theory, but... How do yo do that? In what markets?

I feel like this was a tongue in cheek comment to our mate the furry animal

[Euler]

I feel like this was a tongue in cheek comment to our mate the furry animal

Pretty sure your account has to be in profit to qualify for the charge?

[Naffman]

I feel like this was a tongue in cheek comment to our mate the furry animal

Pretty sure your account has to be in profit to qualify for the charge?

Surely the 4 tick offset in play is the road to riches

[ilovepizza82]

What I dont understand is why the PC is the same for both traders and punters.
I barely made 10k (just a regular punting, straight bets) in the past few years and they already want me to pay 20% PC...welll sort of because at one point i was almost below 20% of BF "total charges" but now i managed somehow to lose a bit and it looks a little better now.
I understand why it is for traders but come on, 10k profit and 20% PC ?!!!!

[ShaunWhite]

What I dont understand is why the PC is the same for both traders and punters.
I barely made 10k (just a regular punting, straight bets) in the past few years and they already want me to pay 20% PC...welll sort of because at one point i was almost below 20% of BF "total charges" but now i managed somehow to lose a bit and it looks a little better now.
I understand why it is for traders but come on, 10k profit and 20% PC ?!!!!

It just couldn't be done.
Say I 'trade' 3 markets, I fully hedge one, part close another and not close the third. What rate do I pay?
Tbh that's pretty much how I and many others 'trade', everything is straight betting, with many back and lay bets per selection, and you may or may not have a position at the off.

[rik]

Effectively your paying less premium charge as a punter as you will naturally generate a higher percentage.
Your win/loss ratio unlikely to be as good as a trader that keeps offsetting bets and just pockets the difference.
You said your hovering around 20% so you will pay more or less nothing and then only pay an extra 20% should you reach 250k profit.

[Euler]

I've actually seen some data on PC and it's interesting. There are only small numbers of higher rate payers and, obviously, more at 20%. But still small in the grand scheme of things.

The main reason for this is that, for most, the 'natural' rate of commission on an account is around 20-25%. There is a marked blip there and it seems to be the nature and structure of the market delivers that amount.

[rik]

I've actually seen some data on PC and it's interesting. There are only small numbers of higher rate payers and, obviously, more at 20%. But still small in the grand scheme of things.

The main reason for this is that, for most, the 'natural' rate of commission on an account is around 20-25%. There is a marked blip there and it seems to be the nature and structure of the market delivers that amount.

Would you mind sharing the numbers? Around 500 on the higher rate?