Betfair Exchange Review (2022)

Betfair Exchange Review 2023

They say the only thing that is constant in this world is change. And true to this, Betfair has experienced its fair amount of change over the years. In the past decade, Betfair has undergone massive transformations. Luckily, we’ve been actively tracking the changes and are well placed to provide a comprehensive and honest review of this betting exchange.

What is Betfair Exchange?

Betfair is simply an online betting exchange. Though the company usually focuses more on their sportsbook side these days (they do heavy marketing on this), it’s the exchange that shot them into the limelight.

Betfair Exchange was founded back in June of 2000. At the start of the 21st millennium, it was the only online exchange. It’s quite hard to imagine today with so many online platforms to take advantage of, but back then, sports trading wasn’t possible – not unless you were privileged enough to work for a bookie.

So this is what Betfair did. Instead of using a conventional bookmaker to place bets, it gave players the freedom to place bets against other users through third-party marketplaces.

The difference between a sports book and an exchange

If you haven’t noticed it yet, we are reviewing the Betfair exchange and not the sportsbook. Yes, there’s a difference – two main differences. Simply put, a sportsbook is just a place where individuals go to place bets against bookmakers. You can think of these as back bets. So what’s a back bet? A back bet is a situation in which you are betting for a specific thing to happen. For instance, you may place a bet on a particular horse to win a given race. In the event that the horse wins, the bookmaker will pay you your winnings.

It’s easy, right?

Now, betting exchanges are similar. But as mentioned, there are two main differences. First, instead of placing the bet against the bookmakers, the bet is offered up for anyone to accept. This means that other sports traders, betters or small bookmakers can take up the bet.

Second, and this is the most important difference, with a betting exchange, you can lay bets and place back bets. We shall look at what a lay bet and a back bet is later on.

How Does Betfair Exchange Work?

Betfair exchange operates in the same way stock exchanges work. Basically, Betfair allows individuals to use the exchange to match bets with other bettors. In addition to this, they are tasked with the responsibility of ensuring that the bets are settled in a fair manner. This means that there aren’t arguments about who should/would have won no place in the exchange. Any disagreements are handled by Betfair exchange.

Betfair is basically a trusted and regulated form of escrow service or referee. They will hold on to the cash you bet for as long as they deem necessary. If there aren’t any squabbles, the funds are released faster.

With this knowledge, if you now think about it, without an exchange, and a regulated one at that, there are minimal options for those thinking of placing bets on the open market. Without exchanges, people are forced to use bookmakers who, unfortunately, give very low odds.

So what does Betfair get in exchange? Well, for every successful transaction, Betfair Exchange takes a commission (usually 5%) on the winning bet. However, this may vary depending on how much one bets.

If you are used to a sports book, a commission based service may seem odd. But even then, the commissions are imperative for the survival of the Betfair Exchange. The entire business is hinged on the commission. And for an exchange that gives great odds, the commission is nothing to worry about.

What is a Back Bet on the Betfair Exchange?

We’ve established that the ability to lay and back bets is the main difference between betting exchanges and traditional bookmakers. So what is a back bet and a lay bet?

A back bet is simply a situation in which you place a bet for a specific thing to happen. Say, for instance, you back bet on Chelsea to win the league. The only way you’ll receive your winnings is when Chelsea actually wins.

But things are slightly different with lay betting

What is a Lay Bet on the Betfair Exchange?

Lay betting is an option that Betfair affords bettors to play the role of a bookmaker. They offer odds to sell a particular bet instead of backing it. Using the same example of Chelsea winning the premier cup, the only way you’ll be paid is if Chelsea loses the match. This means that when you lay a bet, you are basically betting against other bettors.

What is Trading on the Betfair Exchange?

To understand trading on Betfair, you first need to have a firm grasp on the basics of laying and backing. The entire trading is based upon these two. But since we already reviewed this, we shall not go back to it.

Instead, let’s build on that knowledge.

As mentioned before, the odds fluctuate before and during the game. This means that the prices are volatile, which offers you an opportunity to make even more money.

Since you can lay and back an event, in the event that we backed the game to draw plummets, we can lay the same draw and lock it. This will assure you of profits regardless of the outcome of the game.

Here are some numbers to make it clearer

Say for instance you backed the draw at an odd of 3.0 with £10.  This would earn £20 in profit in the event the match ends in a draw or a loss of £10 if the game doesn’t draw. Now, assuming the game is level at the half time mark and the odds change to 2.0. At this point, you can lay a draw, but this time with a £15 stake. This would earn you £15 in profit if it ends in a draw or a £15 loss if it doesn’t.

Clearly, given the above example, regardless of the match’s outcome, you’ll make £5 in profit.

Generally, this is the buy low, and sell high concept of trading on Betfair Exchange. It might seem complicated at first, but it’s easy. There are even calculators to help you determine how much you should back to make a profit.

How Does In-play Betting Work on Betting Exchange?

In-play betting is simply placing bets after the event has kicked off. This means that players can react to the match proceedings as they watch the match live. Usually, people have an opinion of the matches before they start playing. With in-play betting, you can choose to either change your mind or back up your bet during the event. And the best bit is that you are allowed to change your mind as many times as you’d like provided you have cash in your account to make the bets.

Here’s how it works

The moment the event kicks off, you can place several bets on different markets.

Example 1: Football

In football, for instance, you can place a bet on the half time outcome, the next corner, the next team to score, the next player to score, the winner of the match and many other markets.

Example 2: Horse Racing

In horse racing, betting is a tricky business. Some horses flatter to deceive while others are known for snatching victory in the last minutes. Some may have proven stamina and others unproven stamina. In-play market helps you to adjust to all these factors.

Why is my bet not matched and what does that mean?

This is a pretty common question from newbies who are trying out Betfair exchange. Usually, with traditional betting on sports books, bets are matched and confirmed quickly. The confirmations are fast because most sportsbooks accept bets automatically. The prices offered already factor in profits and risk involved.

But with Betfair exchange, the bet might take quite a bit of time before it’s matched and confirmed. This is because a third party individual is required to match bets (unless of course, you choose to go with the current price). However, the matching and confirmation process is faster in the popular and busier markets.

Betfair Exchange Market Liquidity: What it Means

Liquidity is simply the amount of money that is available for matching in a given market. If the market is termed to have high liquidity, then it means that there is a large amount of cash being matched.

What is the Betfair Exchange Start Price?

Betfair Exchange starting price is usually based on the bets placed by layers and backs in the market. There isn’t a margin for profits. It is because of this that Betfair Exchange offers good odds.

The starting price is precisely calculated to make sure that the odds are transparent and fair for both layers and hackers. The starting price is not needed to account for profit margins. As such, it is calculated at the end of the event by considering the relationship between amounts requested at the starting price by the opposing bettor and unmatched exchange bets.

How does Betfair Exchange compare to other sports exchanges?

It’s true that Betfair Exchange was one of the first betting exchanges in the market. However, times have changed and now there are new players. Smarkets, Betdaq and Matchbook are some of the most popular competitors, and each has its own fair share of pros and cons.

The main advantage that Betfair Exchange has over others in the industry is the fact that it has a large user base which translates to more liquidity. This means they have a lot more money to trade in and way more to be made in winnings.

The major complaint that most bettors have is that Betfair Exchange features extra charges. Betfair takes a significant portion of profits from the higher earning sports traders per month. Aside from this, they charge a high commission; 5% in comparison to Smarket’s 2%.

Betfair Exchange Mobile App

In addition to the sports-based mobile app, Betfair also created one for betting exchange. This app can be downloaded on Android devices and iOS. The mobile app allows you to back and lay bet.

Key features of the Mobile App

The app comes with loads of cool features to help make the experience more fun. Some of the features that stand out include:

• The app allows users to take complete control of their accounts. They can withdraw and deposit cash using different payment options
• The app has a cash-out feature for users. This enables them to ensure they always have cash in their kitty when the in-play bets aren’t going as they’d hoped.
• Users can quickly access different markets at Betfair Exchange using a simple touch ID authentication system.
• The app avails a large variety of in-play markets.

Betfair Exchange Welcome Offer

Betfair Exchange is currently offering new customers a £20 risk free first bet bonus. To claim your £20 Betfair risk free bet, simply sign up with Betfair now via this link.

New customers only, bet at least £20 on the Exchange and if your first bet loses, we’ll refund you £20 in Cash. Bet must be placed in first 7 days of account opening. See below for full Terms and Conditions

Betfair Exchange Design

The app design is pretty straight forward. It features the signature black and yellow theme and has minimal imagery. Overall, the user experience is exemplary and navigation is easy and fast.

Betfair Exchange Live Streaming

Betfair avails various live streaming options for selected racing events, and sports for its customers in the U.K.  This alone makes Betfair Exchange popular with the masses.

On the live stream, you can see what you are streaming currently and the upcoming streams just like on YouTube. However, note that if you are planning to participate in in-play betting, the video has a 2-5 second delay.

Betfair Exchange Customer Support

Betfair Exchange customer support is rather strong and responsive. It allows its customers to reach out via:

• Twitter: @BetfairHelpDesk
• Live Chat through Betfair Help Center
• Email: Betfair help email
• Free Phone: 0844 871 5000

Betfair Withdrawal Speeds

Withdrawal is relatively quick and simple with Betfair Exchange. Generally, the process takes about 24 hours via Skrill and PayPal (Betfair Exchange is on our recommended list of betting sites that accepts paypal), and a maximum of 72 hours for card withdrawals. 

Final Verdict On Betfair Exchange For 2022

Clearly, there’s a lot to gain with Betfair Exchange. The fact that it offers the best odds and has a wide range of sports and racing markets makes it ideal for all. If you are looking for a partner site, then you should consider trying out Betfair Exchange.