So, what is a betting exchange? The concept of a betting exchange tends to be the stumbling block for many potential matched bettors, so I’ve written this straightforward guide to help you guys out.
Betting exchanges are the platform that make matched betting possible and by understanding how they work, you are unlocking the door to massive earning potential. As far as I’m concerned, if you can get your head around how betting exchanges work, you’ll have no problem in becoming a matched betting pro!
Put simply, a betting exchange is a website where customers can bet against each other. This means we can choose between being the punter and ‘backing a bet’ or effectively being the bookmaker and ‘laying a bet’. Our bet will only be matched once another customer has bet against the same outcome.
There are a handful of different betting exchanges we can use, but my recommendation is to sign up for a Smarkets account. The site runs smoothly, is really easy to navigate and their markets have great liquidity (more on this shortly). The main reason you should use Smarkets though, is that they only charge 2% commission in comparison to the 5% charged by rival betting exchanges, such as Betfair. Don’t get me wrong, I have an account with both as it’s always handy to have Betfair on standby but if you’re serious about matched betting, Smarkets is the way to go.