Fixed rate / premium charge

News, chat and debate about the Betfair betting exchange.
Post Reply
rik
Posts: 1583
Joined: Sat Jan 25, 2014 5:16 am
Location: London

https://www.youtube.com/watch?v=oOEl5Vq ... u.be&t=619

At 10:20 hes talking about paying a fixed rate rather than premium charge, Not quite sure what hes talking about, is this something you would negotiate? Anyone else paying a fixed rate, what would be the incentive for Betfair to allow that? thanks
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

Fixed-rate is the same as the premium charge, it's just not called it. It's what Betfair should have done from day one for PR purposes.

https://www.betfairtradingblog.com/betf ... -part-one/
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

rik wrote:
Wed Nov 04, 2020 4:18 pm
........., what would be the incentive for Betfair to allow that? thanks
They do like liquidity providers especially if it's for markets with low liquidity they want to promote.
tej
Posts: 6
Joined: Tue Mar 03, 2020 3:18 pm

I have been rejected for a fixed rate instead of premium charge,they said that fixed rate is only for people who qualify for higher rates not 20%

is this right? does anyone paying 20% have a fixed rate? TIA
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

What did you offer them to go on the fixed rate?
User avatar
Derek27
Posts: 23469
Joined: Wed Aug 30, 2017 11:44 am
Location: UK

tej wrote:
Fri Dec 18, 2020 1:40 pm
I have been rejected for a fixed rate instead of premium charge,they said that fixed rate is only for people who qualify for higher rates not 20%

is this right? does anyone paying 20% have a fixed rate? TIA
By fixed rate do you mean a fixed fee/amount?
tej
Posts: 6
Joined: Tue Mar 03, 2020 3:18 pm

spreadbetting wrote:
Fri Dec 18, 2020 3:42 pm
What did you offer them to go on the fixed rate?
to pay higher commission every market as opposed to weekly premium charge,
tej
Posts: 6
Joined: Tue Mar 03, 2020 3:18 pm

Derek27 wrote:
Fri Dec 18, 2020 4:33 pm
tej wrote:
Fri Dec 18, 2020 1:40 pm
I have been rejected for a fixed rate instead of premium charge,they said that fixed rate is only for people who qualify for higher rates not 20%

is this right? does anyone paying 20% have a fixed rate? TIA
By fixed rate do you mean a fixed fee/amount?
higher rate of commission paid per market rather than a weekly charge taken on a wednesday. im aware it is basically the same thing just taken in a different way but better for me mentally rather than a lump amount taken in pc
mcfc1981
Posts: 352
Joined: Tue Oct 27, 2009 11:54 pm

Got offered this about 2 year ago......
From memory they offered me about 17% fixed rate which they would review every 2/3 month.

wasn't sure if after the 3 month review if I hadn't paid the equivalent of the 40% premium charge in the fixed rate if I would owe Betfair......decided to stick with Premium charge to save the hassle
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

I'd always assumed the increased fixed rates still went thru the PC calculation as usual on the wednesday just meant you didn't get hit with a lump sum as it'd been spread across the markets. The premium deals seem to be handled manually by a separate pricing team as they get taken off on Wednesday at random times.
TisTheOne
Posts: 1
Joined: Tue Dec 29, 2020 5:22 pm

I have been offered a fixed rate after a few emails back and forth. I am currently on 20pc premium charge but close to the upper levels. Fixed rate is 17pc. I will ask if he minds sharing his email address with you so you can contact him
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

TisTheOne wrote:
Tue Dec 29, 2020 5:30 pm
I have been offered a fixed rate after a few emails back and forth. I am currently on 20pc premium charge but close to the upper levels. Fixed rate is 17pc. I will ask if he minds sharing his email address with you so you can contact him
Is it a complete replacement for the Premium charge or do they still calculate any possible charges weekly and you pay if any are due.
User avatar
Derek27
Posts: 23469
Joined: Wed Aug 30, 2017 11:44 am
Location: UK

spreadbetting wrote:
Tue Dec 29, 2020 6:08 pm
TisTheOne wrote:
Tue Dec 29, 2020 5:30 pm
I have been offered a fixed rate after a few emails back and forth. I am currently on 20pc premium charge but close to the upper levels. Fixed rate is 17pc. I will ask if he minds sharing his email address with you so you can contact him
Is it a complete replacement for the Premium charge or do they still calculate any possible charges weekly and you pay if any are due.
I was just typing that question as you posted.

So, if you traded just one market and made £1K. PC with 2% commission would be £980 profit, less PC of £200 - (£20 / 2) leaving you with £790.

At 17% commission your profit is £830. What happens next TisTheOne?

If they still apply PC they surely wouldn't credit you for generating only half of the 17%: £200 - (£170 / 2) leaving you with £715 ?
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

Yep be interesting to know if you do avoid the PC calculations with a fixed rate. Whenever I've done their Premium Deals they've always gone thru the PC calculation at the end of it and PC charged, maybe at a more favourable rate for whatever reason/s but still calculated and charged.
User avatar
gazuty
Posts: 2547
Joined: Sun Jun 26, 2011 11:03 am
Location: Green land :)

For a period I was satisfied and consoled myself with this explanation.

But now I wonder, if my spouse and adult children developed an interest in exchanges and opened their own accounts would I sooner (probably) or later receive an email congratulating the enthusiasm of my family and very much welcoming them but also noting that all our accounts had been combined for PC calculation purposes?

Maybe I just read the blog again and be consoled. First world problem.
Post Reply

Return to “Betfair exchange”