dealing with commission on betfair

[robskone]

Hi all,

I am looking at different ways to make money from betting and have come across this method while I have been in other matched betting forums. This idea sounds quite interesting to me, and is probably something I will start spending some time looking into.

Does anyone have any general tips for someone starting off on this? I guess getting the software would be the obvious point.

I do have one question though- how does it work when it comes to commission on betfair? I am currently on their 5% scheme through the rewards. From what i have read you make money by trading out on close matches between prices, but I have used a matched betting calculator and if, for example I placed a buy bet of £10 at a price of 5.5, then sell at 5.45, with the 5% commission that would result in a 33p loss with a 5% commission.

Have I missed something? Could someone clear this up for me if I have misunderstood.

Many thanks.

Rob

[Dallas]

Its charged against your profit so using your example with a £100 stake and with an exit price of 5.4 as there is no 5.45 price point
You'd make £1.85 after greening up

so you'd pay 5% of that ie, 0.09p

[robskone]

Ahhh ok thank you, makes sense. Thanks for your explanation

[jamesedwards]

Most profitable traders will be on the 2% no frills commission band.