Betting exchanges are online platforms where gamblers can place bets against each other rather than a bookmaker. A betting exchange matches back and lay bets for gamblers betting on sports and political events. In this guide, we compare the best betting exchanges in the UK and review their welcome bonuses.
Best Betting Exchanges In The UK
Betfair is considered to be the best betting exchange in the industry. They were the first platform to offer this type of betting and continue to set the standard. Boasting almost 90% market share for gamblers who use exchanges, they also offer excellent backing odds with big stake liquidity and lead the way in football and horse racing exchange betting.
In order these are the best betting exchanges, based on our matrix:
Although all the betting exchanges offer something a little different, Betfair is generally considered to be the best betting exchange in the industry. They were the first platform to offer this type of betting and continue to set the standard.
Boasting almost 90% market share for gamblers who use exchanges, they also offer excellent backing odds with big stake liquidity. They lead the way in football and horse racing exchange betting and offer tips, previews, and historical data to help you win. However, it is important to note that customers do pay a higher commission charge on winning bets of 5% for the service.
Betfair Betting Exchange
The Betfair betting exchange was founded in 2000 by business partners Andrew Black and Edward Wray. Since then, they have grown to be the biggest betting exchange platform in the world, with over 4 million customers, and they were the first betting exchange to float on the London Stock Exchange.
In 2016 Betfair merged with Paddy Power, and in 2018 they merged with FanDuel in America. Betfair now sits as part of Flutter Entertainment plc, an international sports betting and gaming operator.
Betfair is regulated by several regulatory bodies around the world, but predominantly by the UK Gambling Commission, and the Malta Gaming Authority.
Betfair charges a basic commission rate of 5% on all winning bets and currently has a welcome offer to claim £40 once you have bet £10.
Betfair Review
Name: Betfair
Description: Betfair are one of the original betting exchanges and still the best. Betfair offer the widest range of betting exchange markets, the best liquidity, market depth, bet type options as well as a decent welcome offer for new punters.
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Summary
Betfair revolutionised the way people are able to bet on sports by allowing them to lay bets and essentially act as bookie as well as punter and win when their bet loses.
Pros
- Best betting exchange liquidity and market depth
- Largest range of markets to bet on
- Decent welcome bet offer for new punters
Cons
- Expensive commission rates
- Platform can look a bit functional
- Site navigation in search defaults to fixed odd
Smarkets Betting Exchange
The Smarkets betting exchange was founded in 2008 by Jason Trost who wanted to position the platform as a more advanced trading service compared to other betting exchanges. They operate a peer-to-peer trading platform where customers can set their own odds and bet against each other.
Smarkets is headquartered in London and has continued to grow in popularity thanks to their sleek brand and low commission base rate of just 2% on all winning bets. They have also attracted new customers with their current offer of a £10 bonus once you have deposited £20.
Smarkets was first granted a licence by the Malta Gaming Authority in 2011, and they received a licence from the UK Gambling Commission in 2015.
Smarkets Betting Exchange Review
Name: Smarkets Betting Exchange
Description: Smarkets is a UK-based betting exchange that allows customers to back or lay on certain events worldwide, predominantly based around sports. It works similarly to other betting exchanges with a few added perks, which we will discuss shortly. Smarkets can be used by anyone looking to either back or lay on a particular event. However, like most betting exchanges, it is aimed at the professional trading market.
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Summary
The Smarkets exchange is a platform that allows you to back, lay and trade on a multitude of sporting events, as well as some political and entertainment markets. You can bet on football, golf, cricket, rugby, basketball, handball, volleyball, and many other sports and current affairs. Its main selling point in comparison to other betting exchanges is that it offers a lower commission rate which we will come on to shortly. It perhaps doesn’t have as many markets as its competitors, and the platform lacks the experience that they have in terms of reliability, but it is more user-friendly and indeed more welcoming to customers who are not as knowledgeable about betting exchanges.
Betdaq Betting Exchange
The Betdaq betting exchange was founded in 2000 by Irish businessman, Dermot Desmond, and started trading in September 2001. The business merged with Ladbrokes in 2013 and has continued to grow to become the second largest betting exchange operator in the UK.
They handle more than £75 million worth of bets each week, are the largest betting exchange technology provider in the world and operate several sports betting brokerages and websites.
Betdaq is regulated by the UK Gambling Commission and offer one of the best commission rates in the industry. There is a base rate commission charge of just 2%, or 0% on certain markets. Currently, they offer a welcome bonus of £10 once you bet an initial £10 stake.
Betdaq Betting Exchange Review
Name: Betdaq Betting Exchange
Description: BetDaq is the second largest betting exchange behind industry leader Betfair. Betdaq has recently reduced its commission rates to undercut Betfair, therefore giving punters better odds than Betfair as well as better odds than traditional fixed odds betting. The BetDaq betting exchange has one of the widest selections of markets available and has the infrastructure of owners Ladbrokes as well as a decent welcome offer for new betting exchange betters.
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Summary
Betdaq was founded in 2000 by Irish businessman, Dermot Desmond, and started trading in September 2001. Since then, the business has grown to become the second-largest betting exchange operator in the UK.
As well as offering betting markets on a wide range of international sporting events, handling more than £75 million worth of bets each week, Betdaq is also the largest betting exchange technology provider in the world and operates several sports betting brokerages and websites.
The concept behind Betdaq is that it brings gamblers together from around the world to bet against each other, rather than use the odds set by a bookmaker.
Pros
- Discounted commission of 2%
- Good range of markets to bet on
- Decent free bet for new punters
Cons
- Liquidity not as good as Betfair
- Welcome offer not as good as Smarkets
- Not a stand-alone betting exchange
Matchbook Betting Exchange
Matchbook betting exchange was founded in 2004 as a peer-to-peer sports betting exchange and online casino. In 2011, they were acquired by a group of Financial Banking & UK sports investors including Matthew Benham and began operating under new ownership and management in April 2012 as Triplebet Limited.
Matchbook is headquartered in Alderney and licensed by the Alderney Gambling Control Commission and the UK Gambling Commission. They offer a very small commission charge of just 1% on each bet placed. The commission is applied to the win amount (profit) on winning bets, and for losing bets, it is applied to the lesser of the stake or potential profit/liability amount. They currently run a welcome offer where 0% commission is applied on all bets up to a specified date.
Matchbook Review
Name: Matchbook
Description: Matchbook betting exchange is one of the newer betting exchanges. Matchbook has quite a comprehensive offering for US sports such as American Football although does have good coverage of the UK sports betting exchange betting landscape. Matchbook is co-owned by Matthew Benham who also owns Brentford FC.
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Summary
Matchbook competes heavily on commission rates and welcome offers to attract new customers.
Pros
- Discounted commission of 2%
- Good coverage of US sports
- Decent free bet for new punters
Cons
- Liquidity not as good as Betfair
- Limited market range compared to BetDaq
- Platform not as good as Smarkets
Best Betting Exchange Free Bets & New Customer Sign-Up Bonuses
See all the latest free bets and offers from the best betting exchanges in the UK and get free bets and discounts. To use the free bets, click on the code or the button to take you directly to the offer.
It is commonplace for online bookmakers to promote welcome offers to attract customers to sign up with them, and betting exchanges are no different.
Betting exchange welcome offers and bonuses can come in different shapes and sizes, with some operators offering free bets, cash back, or reduced commission charges.
For example, Betfair are currently offering a welcome bonus where you can place 5 x €/£10 or more bets to receive €/£20 in free bets and that can be repeated up to 5 times to receive the maximum €/£100 bonus. Elsewhere, Matchbook gives you the chance to boost your winnings on the exchange, with 0% commission on all sports.
– Money back as a free bet if your First bet Loses – Up to £20
…Show More– Money back as a free bet if your First bet Loses – Up to £20
– Use Bonus Code: MB20
Significant T’s and C’s– The user must enter Bonus Code ‘MB20’ during registration
– Minimum Odds of 1.8 for first bet to qualify.
– Losses will be refunded on first bet only, as a free bet – up to £20
– Users cannot back and lay the same selection on the first bet.
– Qualifying bets open to Exchange, Matchbook Zero & Multiples
– Only open to users who deposit via debit card.
– New Customers Only. 18+. Be Gamble Aware.
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- This offer is only open to customers aged 18 or over, whose country of residence is UK or Rep of Ireland or any of the following from the list of countries found here.
- To qualify for a reward, both the Referring Customer and the Referred Customer must have accounts registered in the same country.
- Customers registered in other countries may not be eligible for rewards under Betfair Refer and Earn, or the terms and values might be different to those set out here.
- Applies to accounts referred from 12pm, Friday 31st January 2020.
- To be eligible for this promotion you must have made a deposit using a Debit Card.
- Join now with promotion code ZBGC01
- Deposit a minimum of £10.00
- Verify your phone number
- Bet £10.00
- Get your rewards
UK Betting Exchanges Compared
Use our comparison table of betting exchanges regulated by the UK Gambling Commission to compare welcome bonuses, betting options, deposit methods and platforms.
What Is A Betting Exchange?
A betting exchange is a platform that allows people to bet against each other rather than a bookmaker with gamblers setting the odds or requesting odds from fellow gamblers. For example, people can buy (also known as “back”) and sell (also known as “lay”) the outcome of an event, and they can trade in-play to cut their losses or to secure a profit.
Traditional bookmakers go head-to-head with gamblers on the markets offered, but a betting exchange provides the platform for its customers to bet against each other, and they take a small commission on any winnings for the service. Leading betting exchanges include Betfair, Betdaq, Smarkets, and Matchbook.
The first betting exchange sites to hit the gambling market were Matchbook, Flutter and Betfair. But in 2001, Flutter and Betfair merged. They kept the Betfair brand and name and have since maintained their position as the leading betting exchange platform in the industry.
Matchbook continues to enjoy a loyal customer base, but Betdaq is considered to be the second largest betting exchange, with an estimated 7% share of the betting exchange market. Betdaq launched in 2000, before trading began in 2001. They were bought by Ladbrokes in 2013, who now have their own exchange platform, and continue to rival Betfair thanks to their popular marketing campaigns. Smarkets is the newest kid on the betting exchange market but is growing year on year.
Although many betting exchanges originated in the UK and Ireland, most of them also operate across Europe. For example, Betfair operates in the Netherlands, Italy, Estonia, and Poland etc.
Betfair managed to break the US gambling market in 2016, but previously punters in the US were banned from betting exchange sites, depending on each states’ gambling laws. They have also grown in popularity across Asia, although many of their betting exchange sites are unregulated.
Being able to use betting exchanges in the UK from abroad will depend on a country-to-country basis and whether they have signed up to the various licensing commissions, but the UK operators offer markets from around the world so are definitely the best to join.
Best Betting Exchange Commission Rates
Smarkets offers the best betting exchange commission rates, inline with Matchbook. Betdaq, charges on winning bets so compes third and Betfair charges the most comission. However, even though Betfair charges the highest commission, their odds are often better because of their liquidity.
- Smarkets: 2% on net profits
- Matchbook: 2% on net profits
- BetDaq: 2% on winning bets
- Betfair: 5% on winning bets
Betting exchanges charge their customers commission on winning bets, which is something traditional bookmakers don’t do. However, one of the benefits in using a betting exchange is that you can often get better odds as they are set by fellow customers. Access to these better odds, less the commission being charged, usually works out as a better deal, rather than going head-to-head with the bookmakers and sportsbooks.
The betting exchange commission rates charged by betting exchange platforms do vary from company to company, both in the percentage amount charged, and how the commission rate is calculated.
Best Betting Exchange Liquidity
- Backing: It is generally considered that the best betting exchange for backing with high-stake liquidity is Betfair. This is largely due to the number of lay bettors that use the site. You will find the best liquidity for backing on markets that cover football and horse racing.
- Laying: Smarkets is considered to be the best betting exchange for laying with big stake liquidity, as they have more back bettors. However, they do offer less markets than a platform like Betfair. That said, customers do get some very interesting statistics, graphics, and charts to help them find a winning bet.
Best Betting Exchange Apps
Betfair has the best betting exchange app. We rank betting exchanges by their reviews in the app store. These are often more reliable than Trustpilot reviews, as Trustpilot can be used to vent frustration, but the app store reviews are based on usability.
Here are the best betting exchange apps based on app store and Google play reviews:
| Betting Exchange App | App Store | Google Play | Average |
| Betfair | 4.7 | 4.5 | 4.6 |
| Matchbook | 4.8 | 4 | 4.4 |
| Smarkets | 4.8 | 2.9 | 3.85 |
| BetDaq | 1.6 | 2 | 1.8 |
If you are looking for an exchange betting app, you’ll be pleased to hear that Betfair, Betdaq, Smarkets, and Matchbook all have apps available to download on Android and iOS devices. They are similar to the desktop sites, with easy access to multiple markets. On the app, you will find every market you would on the desktop site, but it can be harder to find bets as quickly due to amount of scrolling you need to do.
However, mobile betting is now more popular than ever with an estimated 72% of sports gamblers using mobile bookies and betting exchanges. The rise in popularity is due to the convenience as you always have access to your mobile device and the technology has improved that much that betting on an app is far better than it ever has been.
Betting Exchange FAQ
There are a lot of questions surrounding how to use betting exchanges and the differences between them and traditional online bookmakers. It can be quite daunting to move away from a betting method you are used to, but betting exchanges can be even more profitable.
Below are the most commonly asked questions relating to betting exchanges and the answers to them.
Every bet that is placed on a betting exchange involves two bets. There is the first bet that backs a selection to win, and a second bet backing the selection to lose. An example of this is a £10 back bet on a horse to win at 10/1 will need a £100 bet from someone for the horse to lose. Betting exchanges make their money by charging commission on winning bets for the use of their platform.
Making money on betting exchanges is possible and probably simpler than it might sound. It can be done through sports trading, which is a bit like stock trading. Instead of buying and selling shares of a company, you can buy and sell bets on sporting events. The real bonus of this approach is that you don’t have to pick a ‘winner’. You can buy or back the bet, then sell or lay the bet as prices fluctuate. This is also known as sports arbitrage, or arbing. Another way to make money is through match betting, where you can take advantage of free bets to back something and lay it with real money to make a profit.
Platforms such as Betfair and Betdaq do employ experts who have dedicated pages offering daily betting exchange tips to help you win some money. The tipsters largely cover horse racing and football, but there are also specific tips covering other major sporting events. The tips offered are generally good and you can pick up some gems, but as with all tipping, it is just one person’s opinion. However, some tips are based on statistics, so if you like to bet on outcomes based on previous form, these tips could be better for you.
Betting on football through a betting exchange is different way of betting compared to a traditional football bet. For example, if you place a bet on a football team to win before the start of a match, a betting exchange allows you to change your position during a game depending on how the game is going.
When you place a bet on a betting exchange, you are basically betting against another customer. If you back a bet, you on betting on an outcome to happen. But you’ll need someone to bet on that outcome not happening, so your bet is matched. For example, if you want to place a £10 bet on a horse to win at 10/1, returning a profit of £100, you need someone else to risk £100 at 1/10 to win £10 in the hope that horse doesn’t win.
All of them! Betting exchanges have increased the number of sports and events you can bet on as they have grown since their launch. The major sports on betting exchanges include football, horse racing, greyhound racing, cricket, snooker, tennis, golf, basketball, rugby, and many, many more. Each of these major sports have a vast range of markets that can be bet on based on events from around the world. For example, the football market covers all major leagues across Europe and South America, as well as leagues in Asia, Africa, and the US. The same can be said for most sports featured, with global events and major tournaments also covered.
An exchange bet is one placed on a betting exchange where customers bet against each other rather than a bookmaker. Customers act like the bookie as they can offer the odds or request them from fellow customers. You can back or lay a bet too. So, if you back something, you want it to happen. If you lay a bet, you are betting on it not to happen.