Betfair commission

[Shergar6]

Hi ,
I am looking into the various betfair commission strcutures and from my research there are three levels
8%
5%
2%.

https://www.timeform.com/betting/betfai ... %20betting.

"This personalisation of the commission structure means customers have the choice to pay either 8%, 5% or 2% commission on Exchange winnings. The Rewards+, Rewards and Basic packages all comes with various add-ons to help tailor your Betfair experience to your preferred way of betting. You can fund full details of what’s included with all three packages here."

I can't really see what the difference with the three packages are apart from the fact I would choose 2% looking at this straight off.

Does anyone know the difference between the three packages?

[Michael5482]

Log in to your Betfair account and select My Betfair Rewards on the ribbon and it'll tell you about the packages or see attached.

[Derek27]

Hi ,
I am looking into the various betfair commission strcutures and from my research there are three levels
8%
5%
2%.

https://www.timeform.com/betting/betfai ... %20betting.

"This personalisation of the commission structure means customers have the choice to pay either 8%, 5% or 2% commission on Exchange winnings. The Rewards+, Rewards and Basic packages all comes with various add-ons to help tailor your Betfair experience to your preferred way of betting. You can fund full details of what’s included with all three packages here."

I can't really see what the difference with the three packages are apart from the fact I would choose 2% looking at this straight off.

Does anyone know the difference between the three packages?

Just do a calculation over a few months and see which would make you better off. But bear in mind, if you're profitable or become profitable, when lifetime net profits reach £250K, you become eligible for the higher rate of premium charge and paying a low overall commission rate would put you in a higher bracket, you need to think well ahead.

[lotora]

Hi ,
I am looking into the various betfair commission strcutures and from my research there are three levels
8%
5%
2%.

https://www.timeform.com/betting/betfai ... %20betting.

"This personalisation of the commission structure means customers have the choice to pay either 8%, 5% or 2% commission on Exchange winnings. The Rewards+, Rewards and Basic packages all comes with various add-ons to help tailor your Betfair experience to your preferred way of betting. You can fund full details of what’s included with all three packages here."

I can't really see what the difference with the three packages are apart from the fact I would choose 2% looking at this straight off.

Does anyone know the difference between the three packages?

Just do a calculation over a few months and see which would make you better off. But bear in mind, if you're profitable or become profitable, when lifetime net profits reach £250K, you become eligible for the higher rate of premium charge and paying a low overall commission rate would put you in a higher bracket, you need to think well ahead.

I did choose 2% commission because I thought that was the "right option" for those who later become "filthy rich" from Betfair trading. Please elaborate!

[Derek27]

Hi ,
I am looking into the various betfair commission strcutures and from my research there are three levels
8%
5%
2%.

https://www.timeform.com/betting/betfai ... %20betting.

"This personalisation of the commission structure means customers have the choice to pay either 8%, 5% or 2% commission on Exchange winnings. The Rewards+, Rewards and Basic packages all comes with various add-ons to help tailor your Betfair experience to your preferred way of betting. You can fund full details of what’s included with all three packages here."

I can't really see what the difference with the three packages are apart from the fact I would choose 2% looking at this straight off.

Does anyone know the difference between the three packages?

Just do a calculation over a few months and see which would make you better off. But bear in mind, if you're profitable or become profitable, when lifetime net profits reach £250K, you become eligible for the higher rate of premium charge and paying a low overall commission rate would put you in a higher bracket, you need to think well ahead.

I did choose 2% commission because I thought that was the "right option" for those who later become "filthy rich" from Betfair trading. Please elaborate!

I'm not (yet ) filthy rich from Betfair trading, but when you do hit PC2, you pay 40, 50 or 60% PC, depending on whether your total commission paid is >10%, 5-10% or <5% of your total profits respectively. So you certainly don't want to get there with a very low percentage commission paid.

I'm well over 10% thankfully, but if I was to head below 10%, I may have to adjust my trading, try to churn more commission. Paying a higher rate would always be an option.

[lotora]

Derek, thank you!

I will now choose the highest commission.

[Shergar6]

Thanks lads!

Option 3 precludes you from a free spin

Where do I get info on this Premium charge? Its says see T&C but do you have a link for this? Is PC % of bets placed?

[Shergar6]

I found a link about it and it is pretty complicated

https://community.betfair.com/australia ... iew=0&pg=1

Nonetheless nothing to worry about atm but just in case

[sionascaig]

I found a link about it and it is pretty complicated

https://community.betfair.com/australia ... iew=0&pg=1

Nonetheless nothing to worry about atm but just in case

The difference between 8% & 2% commission is enough to ensure you no longer have an edge...

[jamesedwards]

Commission = half of actual commission paid on winning markets + half of implied commission on losing markets.

Implied commission is 3% of loss.

So if you win £200 gross on one market with 2% commission and lose £100 on another market then Commission would = (half of £4) + (half of £3) = £3.50

Commission% would = £3.50 / £100 = 3.5%.

When you get to above £250k net lifetime profit you begin to pay the upper rate of Premium Charge (PC2), which is tiered based on your Commission%:
<5% you pay 60% PC2
5%-10% you pay 50% PC2
>10% you pay 40% PC2


So, your strategy for limiting PC2 depends very much on your style of trading. If you win and lose lots then your commission% will naturally be quite high. If you are winning small amounts all the time and losing very little then your commission% will be much lower. The two examples below both generate £1k gross profit, but attract very different levels of PC2:
£10,000 of winning markets and £9,000 of losing markets will produce a commission% of 23.5% and you will pay 40% PC2.
£1,050 of winning markets and £50 of losing markets will produce a commission% of only 1.1% and you will pay 60% PC2.

[jamesedwards]

Derek, thank you!

I will now choose the highest commission.

I imagine almost everyone here will be on the 2% commission band. There can't be many trading strategies where the 8% tier works out the most profitable. 8% commission must be very hard to beat.

[lotora]

Derek, thank you!

I will now choose the highest commission.

I imagine almost everyone here will be on the 2% commission band.

Thanks! Now it's getting more complicated

[Derek27]

Derek, thank you!

I will now choose the highest commission.

Don't pick the top rate unless you've actually looked at your likely situation approaching PC2. Might be worth putting together a spreadsheet based on your current trading and the effect of varying commission.

It's just as well they don't throw in free burger vouchers with the free bets - my brain would completely overload.

[Shergar6]

If I understand this PC only kicks in if your comm paid is less than 20%

[jamesedwards]

If I understand this PC only kicks in if your comm paid is less than 20%

That's PC1. PC2 takes over once your lifetime net profit breaches £250k.