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How Commission Works
Betfair charges commission on your net winnings in each market. The standard rate (the Market Base Rate) is 2% on UK and Irish horse racing win and each way markets and 5% on most other sports. Losing bets, and markets you finish down on, attract no commission. Loyalty discounts can lower your rate, and a small number of highly profitable accounts also pay the Premium Charge.
The formula: Net Profit × Commission Rate = Commission Charged.
Back Arsenal at 2.50 with £100 in a football market (5% commission rate).
Arsenal win. Gross profit = (2.50 − 1) × £100 = £150.
Commission = £150 × 5% = £7.50.
Net profit credited to your account: £142.50. Plus your £100 stake returned = £242.50 total.
If Arsenal lose: you lose £100 stake. No commission. Balance reduced by £100.
Market Base Rate (MBR)
The Market Base Rate is the standard commission rate for a market before any loyalty discount:
| Market Type | Standard MBR | Notes |
|---|---|---|
| UK/Irish Horse Racing Win & Each Way | 2% | Lowest rate |
| UK Greyhound Racing | 5% | Standard sport rate |
| Football (most markets) | 5% | Standard sport rate |
| Tennis | 5% | Standard sport rate |
| Cricket | 5% | Standard sport rate |
| Golf, Basketball, Rugby | 5% | Standard sport rate |
| Some international markets | 5–7% | Varies by jurisdiction and market type |
The 2% rate means a smaller edge is needed to profit, which is one reason UK horse racing is popular with traders. Rates for Australian horse racing and some other markets may differ, so check the market's rules page on Betfair for the exact rate before trading.
Net Winnings — Not Gross Turnover
Commission is charged on your net profit per market, not on each winning bet and not on the total you stake. All bets and trades in the same market (same event, same market type) are netted together. If you place ten trades in the 3:30 at Newmarket and finish £50 ahead, you pay commission on £50.
You make 6 trades in the 3:30 Newmarket Win market (2% commission):
Trade 1: Back at 4.00, lay at 3.80 → +£18 profit
Trade 2: Back at 3.80, lay at 3.90 → −£8 loss (wrong direction)
Trade 3: Back at 3.90, lay at 3.60 → +£26 profit
Trade 4: Back at 3.60, scratch at 3.60 → £0
Trade 5: Back at 3.70, lay at 3.55 → +£15 profit
Trade 6: Back at 3.55, lay at 3.65 → −£9 loss
Net position in market: £18 − £8 + £26 + £0 + £15 − £9 = +£42 net profit.
Commission at 2%: £42 × 2% = £0.84. Net after commission: £41.16.
Commission is charged on the £42 net result, not on each of the three winning trades.
Commission for Traders
Per-market netting favours traders: losses in a market reduce the commission on wins in that market. Make £200 across ten winning trades and lose £80 across five losing trades in the same market, and you pay commission on £120, not £200.
- No negative commission. A market you finish down on costs nothing in commission, but you get no refund either.
- No offsetting across markets. A loss in one market does not reduce commission on a win in another.
- Concentration helps. Trading several positions in one market is more commission-efficient than spreading small wins across many markets, each charged separately.
Break-even analysis with commission
Your break-even price movement is not zero; it is the movement needed to cover commission:
- At 5% commission, a trade that makes £100 gross nets £95
- At 2% horse racing commission, a £100 gross trade nets £98
- For scalpers taking 1–2 tick profits, 5% commission can consume an entire tick of profit in many price ranges
Scalping is therefore harder to make pay in 5% markets than in 2% horse racing markets, which is why many scalpers concentrate on horse racing. See the scalping guide for the maths.
Loyalty Discount Programme
Betfair's loyalty programme discounts your Market Base Rate based on lifetime betting volume: the more you have bet, the lower your effective rate.
- Formula: effective rate = MBR × (1 − your discount percentage).
- Tiers: not published in full by Betfair and changed periodically. Your current discount is shown under "Betfair Rewards" in your account or in the market's commission display.
- Mid-volume accounts: discounts of around 5–15% are typical, which might take a 5% MBR to 4.25–4.75%.
- High-volume accounts: discounts can be larger. At 30%, a 5% market becomes an effective 3.5%.
The Premium Charge
The Premium Charge is an additional weekly levy on accounts that are highly profitable but generate low commission relative to their profits. It applies when lifetime net profits exceed a set threshold and commission paid is less than 20% of gross profits. The charge is up to 60% of that week's net profit.
It targets accounts that are consistently profitable while paying relatively little commission, such as traders with low turnover relative to profit. It does not affect the vast majority of users. Full detail: Premium Charge guide.
How to Minimise Commission
You cannot avoid commission, but you can reduce its impact:
- Trade horse racing over football where possible. 2% instead of 5% is a 60% reduction in commission cost, so the same strategy at the same odds needs a smaller edge.
- Build volume to earn loyalty discounts. Consistent activity over months and years lowers your effective rate.
- Size up on fewer, better opportunities. The commission percentage is the same, but time, attention and slippage per pound of profit are lower.
- Trade liquid markets. The gap between best back and lay prices is typically 1–2 ticks in liquid markets and can be 5–10 ticks or more in illiquid ones, which adds to the edge you need on top of commission.
- Build commission into every target. To net £50 in a 5% market you need £52.63 gross. Include it in your entry and exit prices.
- Weigh alternative exchanges carefully. Betdaq and Smarkets charge 2%, but their liquidity is a fraction of Betfair's. Wider spreads, worse fills and more slippage can cost more than the commission saved. See Betfair vs Betdaq.
Commission vs Bookmaker Margin
A bookmaker builds a margin of 10–15% into the odds of every market, and every bet you place contributes to it, win or lose. Betfair has no margin in the odds and charges commission only on net winnings, so a net losing bettor pays no commission at all.
- A profitable bettor pays 5% of profit rather than losing margin on every bet
- A losing bettor loses less, because Exchange odds carry no built-in margin
- A trader profiting from price movement has no equivalent at a bookmaker
Arsenal to win at a bookmaker: 1.83 (11% margin built in).
Arsenal to win on Betfair Exchange: 1.99 (no margin — market price).
Back £200 on Arsenal. If Arsenal win:
Bookmaker profit: (1.83 − 1) × £200 = £166.
Exchange profit (gross): (1.99 − 1) × £200 = £198. After 5% commission: £188.10.
Betfair beats the bookmaker by £22.10 on this single bet, even after commission. On 100 such bets, that's over £2,200 difference.
For a full comparison, see Exchange vs Sportsbook. Use our calculator to model commission impact on any specific trade.