Super Premium Charge 40% Or 60%?

[annuity]

Hi,

I'm trying to get my head around the premium charge and hoping someone can help please.

If someone was just starting out trading now and eventually get's good enough to reach the super premium charge level they will have been paying the 20% premium charge for most of that time, so when they hit the magic 250,000 mark, will they be on 40% as they will have paid more than 10% overall or are they still likely to be on 60%?

Also if it's 40% will their total charges ever dip under 10% sometimes and they go up to 60% for a bit before dropping back down to 40% after a short time or will the total charges always be above 10%?

[Euler]

It's the commision generated % that you need to keep an eye on PC does not count to that number. So if you cross the lifetime level you will immediately go on the higher rate.

That said, the PC hurt people who were in the market before it was introduced as it was retrospective. If you haven't reach that level there is a lot you can do to ensure you are on the lowest rate when you arrive there and pay less than 40%.

[annuity]

It's the commision generated % that you need to keep an eye on PC does not count to that number. So if you cross the lifetime level you will immediately go on the higher rate.

That said, the PC hurt people who were in the market before it was introduced as it was retrospective. If you haven't reach that level there is a lot you can do to ensure you are on the lowest rate when you arrive there and pay less than 40%.

Thanks for replying. Ok so it's the commision generated % that sets the premium charge %. I wouldn't want to do anything that could get me into trouble but how might one just starting out go about ligitimately ensuring they are on the lowest rate? I can't understand how one could generate commission % above their standard rate? All my figures have been worked out based on 60% so i can live with it if i really have to but anything less than that would be a massive bonus.

[Archangel]

Once someone goes into the higher bracket of 60% , do they remain there for good? So will they pay 60% on all profits generated thereafter ?

[Euler]

No you can go back down, there are not many on 60% because the incentive to move of it is very high.

[Archangel]

I guess the rationale behind all this was to make a money grab on successful traders who, i would imagine, have paid Betfair a pretty penny in commission though the years
It doesnt make much sense though in terms of the exchange, if they still want to support it, dont they need traders on there to provide liquidy? isnt all this PC just driving traders away ?

[Euler]

It doesn't put off the mega earners, simple put off those that sit behind the desk in earnest and work hard. So it doesn't really make much sense. I'd imagine that upper middle group that is hit the hardest are probably the most valuable in terms of effort put in and liquidity created.

[Archangel]

It worrys me what their going to try next
They have no doubt made a fortune with this PC and their shareholders are delighted. But investors will want to know where the next bonanza is coming from. How can they screw traders even more !

[LeTiss]

I have no idea how PC has affected BF's bottom line, and whether the PC payers outweigh the previous excellent commission generators who have left.

However, what is clearly noticeable to those of us who have been sat here for years, is how the fill rate has dropped. Fill rate is almost as critical as the actual liquidity for traders, and it's clear many traders have left the game. Some have been enforced though by the loss of BF territories - the Germans were serious football punters/traders and their demise has been significant

Now BF use advertising purely for Sportsbook, then the Sportsbook should pay for their advertising campaigns!

If BF are serious about maintaining the Exchange, PC should be removed and this will bring liquidity back which in turn will assist their 'Price Rush'

Sadly, that won't happen, as the company are blinded by arrogance. Removing PC will be seen as conceding defeat

[Euler]

I've been lobbying the board for a change, but my heart sank when I saw the last set of results because when things are going well large corporations never act. Even if there is an obvious problem. I'll still continue to lobby however.

[Archangel]

I assume the exchange is still very profitable for them ?
The only hope of change is if Betfair had some serious competition in the exchange business

[Euler]

People need to use Betdaq more. We keep upgrading the software but it doesn't seem to have any impact on the number of users.

[Archangel]

Is Betdaq a catch 22 ?
Traders wont move due to low liquidity, and liquidity wont improve unless traders move over in numbers

It does seem to be getting better, at least for the bigger events

[oscar123]

There is decent liquidity at Betdaq already. The only people who seem to complain about the lack of liquidity on Betdaq are people who don't actually trade there.

I've been on there for a while now and liquidity is better than ever. I think if people actually tried it rather than just dismiss it off hand they would realise the same. With the upgraded betangel software, there isn't much that you can do on betfair that you can't do on Betdaq.

It's surprising that more people aren't moving across, despite the software upgrades, especially with no premium charges, as even if you are not making what you make on betfair youve only got to be making over 60 % of what you make on there to be better off overall assuming you are on 40 % charges.

Personally when I first started on Betdaq I used to make about half of what I made on betfair, now I can honestly say that it is more or less the same and often have days where Betdaq is more profitable than Betfair.

[marksmeets302]

Betdaq blocks most foreigners. Their blacklist is much longer than betfairs. Therefore, their pool of potential customers is much smaller.