When talking about profitability on the Betfair Exchange, there’s one fundamental factor that traders often underestimate — the Betfair commission. Whether you’re new to sports trading or already have some experience, understanding how Betfair commission works is non-negotiable if you want to succeed.
💡 What Is Betfair Commission?
Betfair commission is the percentage fee Betfair charges on your net winnings from a market. It’s not charged on the total amount you stake, but only on your profit. If you lose on a trade, there’s no commission. If you win, Betfair takes a small cut.
This is different from a bookmaker’s margin, where the odds are shaped to ensure profit for the bookmaker regardless of the outcome. On the Exchange, you trade against other users, and betting exchanges simply act as the middleman.
🌍 Different Commission Rates by Country
Here’s where things get even more interesting — Betfair commission rates vary depending on your country. Some examples:
UK: Standard Market Base Rate (MBR) – 2%
Rest of World (e.g., Romania): 6.5% (yes, it’s more than triple!)
Germany: Around 5%
Portugal: Market currently restricted
Italy: Around 5%
Australia: Has additional turnover charges
So next time you think it’s “impossible” to be profitable with 2% commission — think again. Many traders in high-commission countries like Romania still manage to do it.
📊 How Is Betfair Commission Calculated?
Betfair applies a Market Base Rate (MBR) to your gross profit on each market. Let’s break it down:
Example:
You win €100 on a trade. Your country’s MBR is 5%. ✅ You pay: €100 x 5% = €5 ✅ You keep: €95
No profit? No commission.
That’s fair, right?
💡 Also, this fee is only applied to net profit in each market. If you win on one selection and lose on another in the same market, Betfair calculates the net result before applying commission.
⚠️ Important Note:
This is where many traders go wrong. If you try to hedge or insure your position in a different market for the same event (for example, laying 1-1 in the Correct Score market while backing Under 2.5 Goals), Betfair treats those as separate markets. This means you may pay commission on the winning market even if the hedge was meant to reduce risk.
👉 Make sure to check our article on trading related markets for a deeper explanation.
🧮 Betfair Commission vs. Bookmaker Margin
Bookmakers make money by offering odds below the “true” probability. That’s their built-in margin, and it applies win or lose. Read more in our article on How Bookmakers work.
Betting Exchanges let you bet at real market odds, but they charge commission only on winnings.
So, while bookmakers shape the odds in their favor, Betfair lets the market decide and charges a fee only if you win.
⚖️ First, Beat the Commission
Here’s the truth:
Before dreaming of being a pro trader, you need to beat the betting exchange commission. If you can’t even offset the 2%-6.5% taken from your wins, your strategy is broken. That’s your first hurdle.
For example, if your system has an edge of just 1%, and you’re charged 5% commission, you’re losing money long-term.
✅ Your first goal should be a yield that comfortably exceeds your commission.
🔁 How Does Betfair Compare to Other Betting Exchanges?
| Betting Exchange | Standard Commission |
|---|---|
| Betfair | 2%-6.5% (varies by country) |
| Betdaq | 2%-3% |
| Matchbook | 1%-2% + extra charges in some regions |
| Smarkets | 2% |
💬 While other exchanges offer lower rates, they often come with lower liquidity — which can be a deal-breaker for high-volume traders.
An option would be to use a broker (e.g., SportMarket) that offers reduced commission rates. We wrote more about the broker in this article.
🧠 Final Thoughts on Betfair Commission
Understanding and accounting for the Betfair commission is crucial if you want to become profitable in sports trading. It’s not just a tax — it’s the first obstacle your strategy must overcome.
🎯 Want to test your strategy?
Track your gross vs. net profit to see how commission eats into your edge.
✅ Beat it first — then scale.
