How is exchange commission calculated? The difference between 5% and 2%
Exchanges only charge commission on net winnings. We work through back, lay and single-market examples to show how 5% versus 2% commission affects your profit.
9 November 20262 min read
At a traditional bookmaker, the margin is hidden inside the odds. On a betting exchange the odds are set between players, and the exchange takes an open commission from your winnings. That makes the commission rate a direct driver of how much you earn over time.
What is commission charged on?
Commission is not charged on every bet but on your net winnings in a market. When the market settles, the results of all your bets in it are added up; if there is an overall profit, commission is applied only to that profit. No commission is charged on markets you lose.
The formula is simple: Commission = Net market profit × Commission rate
Example 1: Back bet
You back a team for €100 at 3.00 and it wins. Your gross profit is €200.
| 5% commission | 2% commission | |
|---|---|---|
| Gross profit | €200 | €200 |
| Commission | €10 | €4 |
| Net profit | €190 | €196 |
Example 2: Lay bet
You lay a team for €100 at 2.10. Your liability is €110. The team doesn’t win and you win €100. At 5% you pay €5 commission, at 2% you pay €2. Your net profit is €98 instead of €95.
Example 3: Several bets in the same market
In the same match you back Team A for €100 at 2.50 and the draw for €50 at 3.40. Team A wins:
- Team A bet: +€150
- Draw bet: −€50
- Net market profit: +€100
Commission is calculated on the €100 net profit, not on €150: €5 at 5%, €2 at 2%.
How does commission change your real odds?
Once commission is taken into account, the odds you actually get are slightly lower. For a back bet the effective odds are: 1 + (odds − 1) × (1 − commission).
| Displayed odds | With 5% commission | With 2% commission |
|---|---|---|
| 1.50 | 1.475 | 1.49 |
| 2.00 | 1.95 | 1.98 |
| 3.00 | 2.90 | 2.96 |
| 5.00 | 4.80 | 4.92 |
The gap looks small on a single bet, but it repeats in every market you win.
How big is the difference over time?
A player with €2,000 of net market profit per month pays €100 at 5% and €40 at 2%. The €60 difference adds up to €720 a year. For players whose edge comes from small margins (trading, arbitrage, value betting), that can be a large share of their profit.
Things to watch out for
- Commission rates vary by exchange and account type. Check the current rate before opening an account.
- Some exchanges may apply extra charges to accounts that win heavily over a long period. Read the terms.
- Deposit and withdrawal fees are separate from commission.
How to bet at 2% commission
Accounts opened through Betexgo pay 2% commission instead of 5%. Just tick the exchanges you want when you sign up. Use the comparison tool to see which exchange suits you.
This article is for information only and is not betting advice. Gambling is for adults only.
