Betfair Rewards Plan - 2% commission!!

[poklius]

You still pay PC so they could offer you 0% and it wouldn't make a blind bit of difference.

It does make a bit of difference. On 2% most traders would be generating more commision than paying, and vice versa with 5% comm rate. I'm calculating paid/generated commision of my bots and can simulate different commision rates. You'll have to trust me that these figures are correct or do your own excel simulations.


Scenario 5%:
gross pl 1790.92
paid comm 405.77
generated comm 297.75
PC 60.43 (1790.92 * 0.2 - 297.75)
total comm 466.2 or 26% of gross pl

Scenario 2%:
gross pl 1790.92
paid comm 162.31
generated comm 176.02
PC 182.16 (1790.92 * 0.2 - 176.02)
total comm 344.47 or 19.2% of gross pl

2% scenario you get a lot bigger PC charge, but total comm paid is 122 less

[Kai]

You still pay PC so they could offer you 0% and it wouldn't make a blind bit of difference.

If you paid 0% comms you'd soon find your lifetime comms drifting below 5% and find your PC bracket jump to 60%.

So much depends on how you play the markets as a PC payer as to whether you'd benefit from a 2% comm rate in the long term. The majority of people may as well simply switch to it as they're unlikely to be affected by it and if they are they'll know how to fix it.

I was under the impression that you'd jump your PC bracket if you've made over x in profit. Didn't realize there was a benchmark lifetime commission as well? Gah, really have to look into this.

Yikes, I should have been paying more attention. So what's the verdict then? The plan with the highest comms % is the way to go long term when higher PC rates are concerned, to avoid getting stuck in the higher bracket of 60%?

Really need an eli5 version with clear instructions, too much conflicting opinion

[spreadbetting]

Depends if you ever think you'll get into the higher rate bands. For most people I know who do this for a living when it clicks you kind of know you can earn a living from it but even then you'd still have a year or two to start taking any action needed to pump up your comms rate.

So unless you're close to hitting the £250K lifetime winnings or winning at a rate it's getting close I'd simply take the 2% and start to worry when you do hit that purple patch.

Just keep an eye of your lifetime comms rate which you can easily see on the PC page, if you don't have access to that page you'd be over 20% and have no worries.

[weemac]

For me, the new 2% flat rate is the single best piece of news from betfair since the exchange launched. I have a clear incentive to increase my turnover substantially. I can also appreciate that very few other betfair customers will feel this is an opportunity to benefit as much as I do.

[Naffman]

For me, the new 2% flat rate is the single best piece of news from betfair since the exchange launched. I have a clear incentive to increase my turnover substantially. I can also appreciate that very few other betfair customers will feel this is an opportunity to benefit as much as I do.

You'd say this almost wipes out people's incentive to use Betdaq and Smarkets

[Kai]

Depends if you ever think you'll get into the higher rate bands. For most people I know who do this for a living when it clicks you kind of know you can earn a living from it but even then you'd still have a year or two to start taking any action needed to pump up your comms rate.

So unless you're close to hitting the £250K lifetime winnings or winning at a rate it's getting close I'd simply take the 2% and start to worry when you do hit that purple patch.

Just keep an eye of your lifetime comms rate which you can easily see on the PC page, if you don't have access to that page you'd be over 20% and have no worries.

Thanks, will have to work on that since my lifetime comms look below 5% currently with being full time for 5 years so I've been paying PC since the first year. But will have to go into more depth on how to churn more and how to generate more comms, thank God for Bet Angel's automation, but it looks inevitable to me that every trader goes past the 250k and gets hit by PC2, because how the hell could you even generate >40% lifetime comms to completely avoid it, no idea if those numbers are achievable.

[LinusP]

Depends if you ever think you'll get into the higher rate bands. For most people I know who do this for a living when it clicks you kind of know you can earn a living from it but even then you'd still have a year or two to start taking any action needed to pump up your comms rate.

So unless you're close to hitting the £250K lifetime winnings or winning at a rate it's getting close I'd simply take the 2% and start to worry when you do hit that purple patch.

Just keep an eye of your lifetime comms rate which you can easily see on the PC page, if you don't have access to that page you'd be over 20% and have no worries.

Thanks, will have to work on that since my lifetime comms look below 5% currently with being full time for 5 years so I've been paying PC since the first year. But will have to go into more depth on how to churn more and how to generate more comms, thank God for Bet Angel's automation, but it looks inevitable to me that every trader goes past the 250k and gets hit by PC2, because how the hell could you even generate >40% lifetime comms to completely avoid it, no idea if those numbers are achievable.

I vary between 40-45% mostly from outright betting.

[Kai]

Well done, although was wondering if those numbers were achievable from trading activity alone.

[jimibt]

Depends if you ever think you'll get into the higher rate bands. For most people I know who do this for a living when it clicks you kind of know you can earn a living from it but even then you'd still have a year or two to start taking any action needed to pump up your comms rate.

So unless you're close to hitting the £250K lifetime winnings or winning at a rate it's getting close I'd simply take the 2% and start to worry when you do hit that purple patch.

Just keep an eye of your lifetime comms rate which you can easily see on the PC page, if you don't have access to that page you'd be over 20% and have no worries.

Thanks, will have to work on that since my lifetime comms look below 5% currently with being full time for 5 years so I've been paying PC since the first year. But will have to go into more depth on how to churn more and how to generate more comms, thank God for Bet Angel's automation, but it looks inevitable to me that every trader goes past the 250k and gets hit by PC2, because how the hell could you even generate >40% lifetime comms to completely avoid it, no idea if those numbers are achievable.

I vary between 40-45% mostly from outright betting.

assuming a large %age of your activity was outright betting, would this new 2% bracket be a better proposition to manage over time?

[LinusP]

Thanks, will have to work on that since my lifetime comms look below 5% currently with being full time for 5 years so I've been paying PC since the first year. But will have to go into more depth on how to churn more and how to generate more comms, thank God for Bet Angel's automation, but it looks inevitable to me that every trader goes past the 250k and gets hit by PC2, because how the hell could you even generate >40% lifetime comms to completely avoid it, no idea if those numbers are achievable.

I vary between 40-45% mostly from outright betting.

assuming a large %age of your activity was outright betting, would this new 2% bracket be a better proposition to manage over time?

I am personally on 200k+ points so already 2%, any account on 40%+ is also likely to already be on 2% if betting to high volumes.

[ShaunWhite]

Well done, although was wondering if those numbers were achievable from trading activity alone.

My day to day automated trading runs at a hair over 30% with a lifetime iro 26/27%. No straight bets. I'm not in the 250k+ band yet so I don't pay PC, just regular commission. If you plan to be profitable (and who doesn't) then forward planning is well worth it and can't be done soon enough, if you wait until you need it it's much harder to start changing your ingrained comm/profit ratio.

[sa7med]

Well done, although was wondering if those numbers were achievable from trading activity alone.

My day to day automated trading runs at a hair over 30% with a lifetime iro 26/27%. No straight bets.

Woah. Do you run a lot of break even strategies?

[Euler]

It does make a bit of difference.

Y, I think it was just a dig that there is nothing for higher rate PC payers.

[Tuco]

You still pay PC so they could offer you 0% and it wouldn't make a blind bit of difference.

...that's what I thought - was having a discussion with a pal today about this.

My ratio is currently 4.678%, so surely I'd be better off on the Rewards+ 8% commission for now and then change once I'm comfortably above 10%.

I might also win on the free slot rewards!

[tees]

I'm surprised that so many PC payers are already on 2% comms. I'm one of those lazy ones that knew the higher rate PC was coming but didn't do anything about it. For the last few years I've been on 50% PC and have been trying for a year now to get/churn my way to the magic 10%+ to get me into the 40% bracket (forecasted for next April). I've never been able to get my commission below about 3.3% as I have to carefully manage my Betfair balance from which I take an ever decreasing wage each month. 2% means I will be able to take advantage of implied commission and should make it a bit easier for me going forward though I will miss the bonuses/cash races that have helped me a bit this past year. I just thought there were a few more PC payers like myself skirting on the edge and wondering if it's all worth it.