While on the surface Betting Exchanges offer the same betting opportunities as a Bookmaker, there are some key differences.
Betting Exchanges provide a platform for their customers to bet against each other.
This differs from traditional Bookmakers that allow customers to place a bet on any outcome of an event, then they lay the bet themselves offering up their own money in the event the customer’s bet wins.
Betting Exchanges don’t lay any bets themselves but instead, rely on users to both back and lay the bets against each other. Betting exchanges charge a small commission fee on every bet placed to make their money. This fee is simply a percentage of any winning bet.
Betting Exchanges often have better odds compared to Bookmakers. That’s because their market is a free market and their odds are controlled by the punters, whereas bookmakers set their own odds. This allows customers to find better value and is a big reason why betting exchanges are so popular.
In addition to this, Betting Exchanges play a pivotal role when Matched Betting by allowing us to cover all outcomes of an event.
The five main Betting Exchanges are currently PocketBet, Smarkets, Matchbook, Betfair and Betdaq.
PocketBet is designed to be simple for Matched Bettors to use and they charge 0% commission on all bets.
Platinum and Diamond Outplayed members can sign up to receive a special deal that means they will pay 0% commission on all bets with Matchbook.