I Predict a U-Turn on the Betfair Premium Charges

This is probably the biggest story about Betting Exchanges since their inception 8 years ago. I do have to sympathise with the 0.5% (who do they think they are kidding) of Betfair customers that are to be hit with retrospective charges on the profits they have earned over the past 60 weeks.

Of course Betfair will either water down or drop these outrageous charges over the next few days. The accountants may well have a say but to let them ruin what has been a brilliant business with an act of total greed would be sheer folly.

It is great to see so many new people jumping aboard the Betdaq Exchange. I have often spoken about the need for realistic competition in these markets and now we are going to see it. Liquidity has been improving over the past few months but is now set to reach levels that no amount of advertising by the Board of Directors at Betdaq would have been able to attain.

Betdaq will give, to anybody opening a new account, a fixed 2% commission until the end of this year. From January you will then enjoy the much fairer commission scale of between 2 and 5% depending on your level of turnover. There will be no Premium Charges.

The whole ethos of a Betting Exchange is to provide a piece of software and technology that allows people to match wagers with each other, in the same way as the Stock Market allows individuals, traders and companies to match share sales and purchases. 

It is accepted practise that the bigger the trade and the higher the turnover the lower the commission rate should be. This is essentially because the exchange platform is there right from the start but as the exchange grows you get greater efficiency due to economies of scale. It is therefore quite right that the more liquidity you provide the lower you should be charged.

To alienate many of the longer term traders, by penalising them for being good at their job,  is surely flying in the face of the whole principle of Betting Exchanges.

On Betfairs own forum tonight there has been a thread by, CLYDEBANK29, that highlights the case where he may well now be paying four times as much commission on a wager struck under the old terms and conditions. Some relevant parts of the said T&C's have also been pasted on to the thread with the most relevant part being: Any bets matched prior to the time of amendment and notification of the changed terms and conditions will be subject to the pre-existing Terms and Conditions.

It would be interesting to hear the views of Warren Buffet or George Soros if their preferred Stock Market was to say to them ' Thank you for your business over the past 60 weeks, but we have decided to charge you between 4 and 10 times the amount of commission that we have already charged you as a Premium Charge because your account costs us more to operate than our smaller customers accounts'.

 

Comments

[Sylvia]

Its a good job Betdaq is still in business or we would all be up the creek.

[carolyn]

I spoke to the PURPLE last week

They are offering a 2% fixed rate until the 31st December 08

Simply email [email protected] and they will do the rest

They tell me they are working on software and are giving a version out free at the end of this month by all accounts?

They tell me Gruss and Bet Angel are already on the case.

Fantastic video on You Tube type in Betfair Premium Charges – Priceless

http://www.youtube.com/watch?v=h33F6ShhoTQ

[The Sports Trader]

Thanks for the comments Sylvia and Carolyn. I have seen the Fagan clip and will put it on the front page tomorrow.

Ray

[Sylvia]

My Betdaq account is set at 2% and is ready to go. Could be doomsday for Betfair on Monday, I can still see a big u turn but the damage is done and nobody trusts them.

Sylvia xxxxxxxxxx

[Brian]

An good response to Betdaq's 'ghost' video:

http://www.youtube.com/watch?v=f-Q_kyCjbXg

[ian long]

are there any trading platforms out there like bet angel to trade the markets on betdaq ? If not, how do you do it ?

[The Sports Trader]

Hi Ian,

I do not use a trading platform, just the standard site. I know many people think it is impossible to trade without these tools but I have just got used to the site the way it is.

I know that Bet Angel and Gruss are looking at introducing tools to use with Betdaq and I will try them out to see if they make a difference for me.

Good Luck with your trading.

Ray

[ian long]

thanks Ray,
your response was greatly appreciated.
all the best
ian

[Stock Newsletter]

SpeculatingStocks.com regularly reviews its hundreds of past stock picks and small cap stocks. We have been picking stocks since 2004 with a focus on stock picks that create large percentage point returns. We identify hot stocks and stock trends. We also have penny stock picks. Take a look at our huge list of past stock picks. www.speculatingStocks.com

[Penny Stocks]

That's excellent youtube video.

[Basketball Betting]

Nice post. Really I liked it.

Thanks...

[Manchester United]

Well written article, and I agree entirely. Thank you for your fresh point of view. Keep up the good work.

[Laurentios]

If you want to know the best search engine, I may say what such SE doesn't exist. But if you know what you want to find (pdf, doc, rtf, avi, mp3 files) so.. There are many special SE(for example if you search pdf - this http://www.pdfqueen.com SE is the most ideal)

[Masters Dissertation Writing]

Looks a nice post which having lots of information for blog readers.

[Penny Stocks]

Your business blog is so excellent and beautiful to read and learn. Thanks

[lacoste shoes]

Friendship is like earthenware: once broken, it can be mended; love is like a mirror: once broken, that ends it.Do you understand?

[Ugg Classic Mini]

I agree with you. Here we know that our life have to have new thought, new type. New details can provide new really feel and new expertise to us. Just like your blog, it take me to some new state. It is so wonderful that I can not leave.

[Technical analysis of stock trends]

I like this post thanks for sharing this
very good analysis

[Penny Stocks]

Good post.....Valuable information for all.I will recommend my friends to read this for sure…

[Penny Stocks]

Interesting post because many people ignore this information... so important and clear.thanks

[Tamera35Gardner]

I had got a desire to start my own company, nevertheless I didn't have got enough amount of money to do this. Thank heaven my close mate told to use the home loans. Thus I used the student loan and made real my dream.

[Active Penny Stocks]

Hi Penny Stocks,

Thanks for the compliment and comment!

I'm happy that the post has helped you.

[Penny Stocks]

Tips and reports of this kind are very useful for investors looking for the best ways to invest their money today.

[Penny Stock Investing]

Great news. It's wondering.

ENTB

[Hot Stocks]

I was just browsing for related posts for my project research and I ended up stumbling upon this. Thank you for the much needed info.