multiple accounts with bf

[andyfuller]

If you ever look at Peter Webb's P&L's you will see they only ever report one sport so obviously yes you can have multiple accounts.

From what BF have said in the above quoted bits it all seems to be about the sports book. If they improved their filtering on the results it would remove the need to a large extent for multiple accounts but like PeterLe has pointed out there will still be times where people need different accounts.

[steven1976]

G
I have two accounts (i used to have three). I can still only have 20 req/sec etc..and the bit that annoys me is that whilst they are linked for PC..they are not linked for commission?
Alpha, its useful to segregate your P&L's sometimes, to see whats working and whats not.
regards
Peter

Peter, I'm not quite sure how commissions are generated as it doesn't affect me. However my guess would be to find quiet markets with a wide spread and put through say 500 pound on one account and take it out on the other account and then do the same action to be at a zero balance, repeat, repeat repeat etc....? I presume this is a simple version of how commissions are generated to reduce PC charges and could be set up in excel to be at the right levels? Might save a few quid each month for you.

[PeterLe]

HI Steve
What I meant was discounts. If I am at say 4% on my main account...my secondary account might be at 4.5%.
When you open your second/subsequent account it doesn't automatically open with your existing level of discount. I cant remember now, but Im sure the accounts other than the main one starts again at 5%
regards
Peter

[Euler]

I do have multiple accounts as I break it down by sport and often strategy. So one for pre-off one for in running etc. But all my accounts where created a long time ago. I'd often change accounts for security reasons.

Not sure what the current policy is TBH, but I know Betfair are still granting extra accounts for VIP's.

[Euler]

Commission paid doesn't really matter if you are paying PC.

[steven1976]

HI Steve
What I meant was discounts. If I am at say 4% on my main account...my secondary account might be at 4.5%.
When you open your second/subsequent account it doesn't automatically open with your existing level of discount. I cant remember now, but Im sure the accounts other than the main one starts again at 5%
regards
Peter

With you now. I think I was mixing up with discounts and my understanding was that by putting more money through the markets it gives better discount rates that are deducted from PC charges, so I thought it could help bring down your payments. I think something along these lines was mentioned a few weeks ago to help reduce charges for PC payers.

[xitian]

Commission paid doesn't really matter if you are paying PC.

Even if you pay PC, your base commission rate can make a minor amount of difference. This is because PC is calculated from your "commission generated" and not your "commission paid".

From the Betfair charges page it defines:

Commission generated = (Commission + Implied Commission) ÷ 2
where
Implied Commission = market losses x 3%

This means if you're trading at zero base rate discount of 5%, say, you end up paying more PC than if you were trading at a 40% base discount of 3%, say.

Example trading at 5% base commission:

Win £100 = pay 5% comm of £5.
Lose £100 = implied comm of only £3.
Commission generated = (5 + 3) / 2 = £4.
If you're paying PC, then only £4 is put towards it even though your NET profits is -£5 from that win!

Example trading at 3% base commission (having reached 40% discount):

Win £100 = pay 3% comm of £3.
Lose £100 = implied comm of only £3.
Commission generated = (3 + 3) / 2 = £3.
If you're paying PC, then £3 is put towards it and you've lost £3 from your win commission, so I would class this as a fair level.

By following the same example but with 2% base commission (after 60%) discount, you can actually start to offset the PC you pay by churning commission. This is sort of akin to financial exchanges by getting rebates by providing large amounts of liquidity to the markets.

So that's one justification for it, but I don't think it's fairly skewed because it's so hard to get to the higher discount rates. In the end I don't think the base rate difference really makes any nominal difference, so sorry for making a rather pedantic point!

[Euler]

I'm aware of that which is why I'm on a high discount rate, but I don't think that really affects many. Worth pointing out though.

[andyfuller]

By following the same example but with 2% base commission (after 60%) discount, you can actually start to offset the PC you pay by churning commission. This is sort of akin to financial exchanges by getting rebates by providing large amounts of liquidity to the markets.

As I understand it, this is why there are so few people on 60% PC as most of those that were are now churning to such an extent that they have been able to come down off the 60% level.