Looking to find out how the commission rate is calculated on Matchbook? or perhaps you’re considering using them as you’re preferred exchange.
Either way, we’ve created a full Matchbook exchange review covering the lot!
This review will give you all the answers…
What Is Matchbook Exchange?
Matchbook Exchange has been up and running since 2005, roughly 5 years after Betfair arrived on the scene. Matchbook have historically been one of the smaller betting exchanges available, with less traded volume than the likes of Betfair. Although this year, things appear to be changing.
Despite the smaller volume traded on Matchbook, there is still plenty of markets available. Most major sports available on other exchanges are also available to trade on Matchbook such as horse racing, football and tennis. Possibly part of their new-found success…
What is the Difference Between Exchange and Bookmaker?
The difference between an exchange and bookmaker is that an Exchange allows you to place a bet on a horse and against a horse (backing/laying), allowing you to set your odds to be matched by another user. Once the odds are matched, your bet is placed.
Bookmakers only allow you to place back bets, and only give you the odds at which they want to set. This is usually a lot lower to what you will get on an exchange – limiting the potential profit that can be made with that bet.
Bookmakers also have a tendency to play games with winning bettors by limiting their maximum stake size, seizing funds or closing accounts.
Despite regular security checks (that are legally required), exchanges tend not to cause trouble like this as they just make a small commission on your winning and losing bets.
Think of it like this; Matchbook Exchange is simply a platform like EBay which allows any one to come onto their platform to buy and sell. Then, much like EBay they charge a small fee on the transaction.
Matchbook Exchange is essentially doing the same thing but with sports odds.
Since the opening of Matchbook Exchange the commission rate has been relatively low compared to the likes of Betfair Exchange being 5%, Matchbook currently only being 1.5%.
- BETDAQ is 2%
- Betfair is 5%
- Smarkets is 2%
- Ladbrokes is 5%
*these are the correct commission rates at the time of writing. These prices can rise and fall usually varying from 0% and 5%. Which leads me on to…
How Commission Rate is Calculated:
Matchbook Exchange has two commission rates, depending on who offered and who matched the bet. But the reality is you are charged a standard Matchbook Exchange commission rate of 1.5%. The only change to that is if you post an offer that another person matches then the Matchbook commission rate will be 0.75%.
This is an example of a BACK bet matched at accepted odds on Chiefofchiefs in a horse race:
For example, you are backing Chiefofchiefs at 8.0 for £10.
Chiefofchiefs wins the race and you win your bet:
- You will pay £1.05 in commission
- This is 1.5% of your profit £70
- You will pay £0.15 commission
- This is equal to 1.50% of your £10 stake
Matchbook Exchange has a promotional offer for new sign ups at 0% commission on all horse racing, free until the 28th April. Plus, a welcome offer of £500 cash back in your first 5 weeks, essentially this allows you to make money back off the commission you have to pay on bets placed.
It’s likely that offers such as these will be around for a while, as Matchbook Exchange will always be in competition with other Exchanges to give the best prices possible. This rings true not only for new customers, but to keep retention on existing customers too.
Other Betting Exchange Offers..
Other exchanges have plenty of good offers on too. For example Betfair Exchange are offering up to £1000 cashback in the first 30 days. This is gained by collecting Betfair points. To get Betfair points, you have to place bets on the exchange and the price you get charged in commission turns into points which you can claim bets on.
BetDaq is offering pretty much the same offer as Betfair. SMarkets is offering a £10 welcome bonus for new customers if you deposit £20 by card. Ladbrokes Exchange is offering one month commission free (if you sign up this month).
Matchbook Volume & Liquidity:
One thing you need to understand when choosing a betting exchange is volume and liquidity.
In order for your bet to be matched, somebody needs to be on the other side and willing to take your bet. For example if you are backing a horse, somebody needs to lay it at the same price for both bets to be matched.
Therefore, it’s important that there are plenty of people queuing up to match your bets, otherwise you can’t do very much!
According to an industry magazine, Matchbook leads the way in betting exchange volume out of Betfair Exchanges main competitors (Smarkets, BetDaq & Matchbook). While this seems to be true, the overall volume is still much smaller than Betfair and is worth bearing in mind when looking for an exchange to trade on.
If you’re just looking to place a few bets here and there then you likely won’t notice a difference. However, some of the bigger traders may struggle to get their trades matched on certain Matchbook markets. As always, the sport and size of event will make a big impact on the overall traded volume.
The Matchbook App:
You’ll be pleased to know that a while back Matchbook took the time to upgrade the mobile app giving better user experience and a significant performance boost to allow the loading of markets and pages a lot quicker. This should help if you were missing out on bets whilst waiting for the app to load previously.
Overall the general layout is as good as any of its competitors and from my own experience, it is very easy to use. Available on both platforms, (IOS/Android). One big plus is GeeksToy software works with Matchbook.
Matchbook Exchange – the Good
From a purely technical point of view, the Matchbook app is easy to use and has no delay when loading or placing bet. It’s also open to all platforms so you can make use of it on iOS or Android devices. The website works equally well.
Matchbook boasts a low commission rate, which will really make a difference to your bottom line after placing a large amount of bets.
For new customers, there is usually quite a generous sign up offer to be had which you should take full advantage of while it lasts.
Customer support is not something you are necessarily worried about until something goes wrong, but you will be pleased to know they have multiple points of contact across the web and through the website and app. Telephone support was tested and works smoothly as far as I can tell.
Compared to the other competitors of Betfair Exchange, Matchbook has a healthy amount of traded volume and sports markets available.
Matchbook Exchange – the Bad
Despite having plenty of money available in most markets, some sports are difficult to trade on Matchbook due to the low levels of liquidity. You won’t find any problems with major events such as the Premier League, but lower division football leagues for example, will likely be lacking in funds.
The lack of video feeds available on the site isn’t a game-changer but does add to the reasons to use other exchanges. It’s certainly handy to be able to see what’s going on in the event you are betting on!
Matchbook does have a live API available for developers to build tools around. Although there have been a few 3rd party Matchbook trading software’s developed, most of the main programmes do not support Matchbook.
Matchbook Traders Conference
It would be rude not to include a few words on the traders conferences that Matchbook have put on over the years. Open to anyone who can pay for a ticket, Matchbook have put on a few events over the years to promote their platform and sports trading as a whole.
Some conferences have included talks from high-performance coaches, other full-time traders and even me! (click for YouTube video).
Matchbook Betting Podcast:
On a similar theme of giving back to the trading community and promoting their brand. Matchbook have been publishing their Betting Podcast for some time now.
Even if you never plan on trading the same sport or betting with a similar style, it’s always useful to know what other people are doing in the markets.
Matchbook Exchange Review Conclusion
It’s great to see an exchange that puts so much effort into community events, podcasts and other materials. Matchbook are doing their best to become an integral part of the sports trading world and whilst they aren’t a one-stop shop, they certainly have a great product.
The lack of 3rd party applications for Matchbook is one of their biggest downfalls. Luckily the likes of Geeks Toy do have software available for trading on Matchbook, but many of the other big players have not yet released Matchbook trading software.
If you’re looking for another exchange to place value bets or simply have on standby to hedge your trades, Matchbook will do that job perfectly.
Although the volume is nowhere near the level of Betfair Exchange, most sports markets are still active enough to get matched on within reasonable time.
More room for improvement? Certainly, but so can be said for a lot of other betting exchanges.
Next Read: Matched Betting Tips (Winning Regularly)