Updated: 20.08.2025
If you're looking for a substitute for the age-old practice of placing bets through bookmakers, betting exchanges in the UK could very well be it. These sites offer punters the opportunity to either back or lay a market, with the two types of customers essentially having a disagreement about what might happen next. Both stakes and odds are set without any mention of using a betting system or needing a sporting event to serve as a prompt for an agreement. What's more, there's a very open market for exchange sites here, with operations set to cease by 2012. Which brings us to the first question. What is a betting exchange? And what is it not? 1. What an exchange is and what it isn't 1.1. A betting exchange is a market where two types of customers risk parting with their money against something that might happen.
|
1
|
|
MIN. deposit : 5 Free daily odds boost Highly prestigious brand |
|||
| 18+ New UK+IRE customers. Paypal and certain deposit types and bet types excluded. Min £5 bet within 14 days of account reg at min odds 1/2 = 4 x £5 free bets. Free bets valid for 7 days on sports, stake not returned, restrictions apply. T&Cs apply, | |||||
|
2
|
|
MIN. deposit : 10 Wide range of offers Price boosts each day |
|||
| £10 min deposit using promo code 200BONUS • The bonus will be applied once the full deposit amount has been wagered at least twice with cumulative odds of 1.50 or greater • To withdraw any winnings from your bonus, you must wager the bonus amount at least 5 times • All deposit and bonus wagering requirements must be completed within 60 days • This offer may not be combined with any other offer • Wagering limit of £50 per bet Applies • Restrictions apply to withdrawals, payment methods and countries & full T&Cs apply. | |||||
|
3
|
|
MIN. deposit : 5 Extra places and BOG Correct4 football game |
|||
| 18+ Eligible UK+IRE players. Paypal & some deposit & bet types excl. Min first £5 bet within 14 days of account reg at min odds 1/2 = 4x £5 free bets. Free bets valid for 4 days, stake not returned. No cashout, restrictions + T&Cs apply. | |||||
|
4
|
|
MIN. deposit : 10 Very well-regarded bookie Fantastic range of offers |
|||
| For new customers only - Bet £10 & Get £50 in Free Bets for new customers at bet365. Min deposit requirement. Free Bets are paid as Bet Credits and are available for use upon settlement of bets to value of qualifying deposit. Min odds, bet and payment method exclusions apply. Returns exclude Bet Credits stake. Time limits and T&Cs apply. | |||||
|
5
|
|
MIN. deposit : 10 Innovative social features Free soccer betting tips |
|||
| New UK, IE & Malta users only. Min. £10/€10 first deposit only using Debit Card or Trustly. Free bets expire in 90 days. T&Cs apply. | |||||
|
6
|
|
MIN. deposit : 10 Outstanding track record Fixed odds & spread betting |
|||
| Don’t miss our exclusive World Cup offers for new and existing customers. Terms apply. Full details available here. | |||||
|
7
|
|
MIN. deposit : 10 Excellent track record New Bet Boost each day |
|||
| New customers using Promo code H30 only, Min £10/€10 stake, min odds 1/2, free bets paid as 2 x £15/€15, free bets credited after settlement of first qualifying bet, free bets will expire 30 days after the qualifying bet is placed, payment method/player/country restrictions apply. See full terms below. | |||||
|
8
|
|
MIN. deposit : 30 Specialise in horse racing Boost on football accas |
|||
| 21+, new UK + IRE members only. Min deposit £10. Singles, win part of e/w or multiples at odds of evens (2.0) or greater qualify. The Free Bet must be placed at odds of 1/2 (1.5) or greater. Free bets expire in 7 days. The Free Bet stake is not included in the returns . Additional T&Cs apply. Bet responsibly. | |||||
|
9
|
|
||||
| 18+ New Customers opt in, bet £5 & get 2x £10 Free Bets for set events (odds 2.00+) + £10, Slots Bonus, selected games, 35x wagering to withdraw max £250. Bonuses expire in 7 days. Card Payments only. T&Cs Apply | BeGambleAware®: Gambling Help & Gambling Addiction | BeGambleAware | Please gamble responsibly | |||||
|
10
|
|
||||
| New customers only. Max one free £15 bet. Qualifying bets must be placed at odds of 1/1 (2.0) or greater. Paid as bonus token with min 4/5 (1.80) odds req. Skrill, Neteller & PayPal not eligible. T&Cs apply. 18+ | |||||
|
11
|
|
MIN. deposit : 10 Deep in-play section Widespread racing streams |
|||
| *New members. £10 min deposit & bet on sportsbook, placed & settled at 1.5 min odds within 14 days of sign-up. Win part of E/W bets. 2 non-withdrawable £10 Free Bet Tokens: accept in 7 days, valid for 7 days from acceptance (ex. E/Ws & Multiples), stakes not returned. Click here for Rules & Exclusions. Bet Responsibly. BeGambleAware.org | |||||
|
12
|
|
MIN. deposit : 10 Increasingly popular site Free bet refunds on racing |
|||
| 18+ begambleaware.org; New bettors get 50% of deposit up to £50; Once per household; Min deposit £15 (no Skrill/Neteller); Wager a total of 8 times deposit + bonus, with max qualifying bet stake equal to your initial bonus amount; Bonus expires after 60 days; Min odds of 4/5 on singles, or 2/5 per leg for acca; Some bet types excluded; See full terms; See full terms; Terms apply; 18+ | |||||
|
13
|
|
MIN. deposit : 5 Famous Free Bet Club #BetYourWay for football |
|||
| New UK customers only. Min Deposit: £5. Maximum Free Bet: £30. First bet on a Football or Horse Racing multiple with 3+ selections. Overall odds: 3.00 (2/1) or higher. Free Bets available upon settlement of the qualifying bet. Debit card deposits only. This is offer is valid for 7 days from your new account being registered. 18+ BeGambleAware.org Full terms apply. | |||||
|
14
|
|
MIN. deposit : 10 Boosted specials on football Various free bet offers |
|||
| Get a Free Bet up to £35 based on 50% of your first days losses plus 10 Free Spins! UK 18+ T&C's apply. | |||||
|
15
|
|
MIN. deposit : 10 Money-Back football deal Exceptional mobile apps |
|||
| Terms apply | |||||
|
16
|
|
MIN. deposit : 10 Acca protection & boosts Wide range of deals |
|||
| 18+, Welcome Bonus: New Players only, 1st Deposit, Min Deposit: £10, max £15 bonus, valid for 14 days, bets must be placed at a min. odds of 1/1 (2.00) or greater and be settled within 14 days of placement. System bets no eligible. Full T&Cs apply | |||||
|
17
|
|
MIN. deposit : 10 New specials bets each day Multiple acca promotions |
|||
| New UK customers (Excluding NI) only. Mobile exclusive. Min stake £10. Min odds Evs. Free bet applied on 1st settlement of any qualifying bet. 30 days to qualify. Free bets expire in 7 days. Cashed out/Free Bets won’t apply. Payment method restrictions. 1 Free Bet offer per customer, household & IP Address only. 18+. T&Cs apply.**18+. Opt in. UK/IRE customers only. Max refund £/€20. Win or win part of e/w outright singles only. 5 or more runners. 1st bet on each race. Free bet expires after 7 days. Free/void/antepost bets don’t qualify. T&Cs apply | |||||
|
18
|
|
||||
| 18+ New Customers only. Deposit, opt in and place a £5 qualifying bet at odds of 2.00 or greater within 7 days of opening a new account; excludes cashed out bets. Receive 2x £10 Free Sports Bets, valid on set events only at odds 2.00 or greater, expires in 7 days. Plus a £10 Game Show Bonus, selected games, wager 40x to withdraw a max of £250. PayPal and Card Payments only. Geographical Restrictions and T&Cs Apply, See Below. Please Gamble Responsibly. | |||||
|
19
|
|
||||
| New UK customers only. Register using the promo code BETFRED60, deposit and place first bet of £10+ on Sports (cumulative Evens+) within 7 days of registration. First bet must be on Sports. £20 in Free Bets to be used on Sports, £10 in Free Bets to be used on Lotto and 50 Free Spins (20p per spin) credited within 48 hours of bet settlement. Further £20 in Free Bets credited 5 days after settlement. Bonuses have a 7-day expiry. Payment restrictions apply. SMS verification and/or Proof of I.D and address may be required. Full T&Cs apply. Terms & Conditions Apply | |||||
|
20
|
|
||||
| 18+, Welcome Bonus: New Players only. Valid on 1st deposit only. Min Deposit £10. Max Free Bet £40. Min turnover of £20 must be placed at odds of 1/1 or greater, and settled within 14 days of placement. System bets not eligible. PayPal, Skrill and Neteller deposits not eligible for promotion. Click to see full T&Cs | |||||
It is important for customers to know exactly what they are getting into before placing a bet on an exchange. Although the sports markets displayed on exchanges are similar to those found on bookmaker sites, there are some critical differences that players must be aware of. First, betting exchanges display both back and lay options. Players have four options available to them, rather than the two options (back and lay) they are used to seeing on bookmaker sites. Second, betting exchanges do not necessarily have to act as a middleman between two customers who want to use opposite sides of the bet. Odds can be generated in a variety of ways, and they are most often found using either the bookmaker or the exchange as a reference. For these two reasons betting exchanges are different and often better for the end customer.
A betting exchange takes care of all the necessary financial aspects. It takes the stake from the punter backing a selection and the potential payout from the house. The money is held until the final result is known and then the exchange pays out accordingly. For example, if Arsenal had won, the punters would have received their bets and payouts. But if they did not win, the layer would have received their payout and gotten their stakes back. But where does the exchange make money? The exchanges charge a commission to the winning punters, which can range from 2% to 5%. This may seem overly complicated at first, but if you spend a little more time with the exchange, you'll see that it's really simple and straightforward.
Betfair has long been regarded as the best betting exchange around, having launched in 2000. The exchange attracts an estimated 90% of UK punters who bet this way, although its 5% commission fee is one of the highest. Known as "Paddy Power Betfair" on the London Stock Exchange after a merger between the two betting companies, Betfair allows visitors to determine how much odds fluctuate thanks to an API system that they use very intelligently and integrated trading tools that are just as smart. They are licensed by the Gambling Commission, which means there are no problems with UK punters using their very decent platform, and they also hold a license from the Malta Gaming Authority.
Those who place bets on the Betfair Sportsbook earn points that can be redeemed to improve the already great commission structure at Betfair. Promotions at Betfair include a welcome bonus that gives new customers a £20 risk-free bet. Our Betfair review team found this exchange to be particularly attractive to football and horse racing fans. However, Betfair offers many other betting markets and the minimum bet on the Betfair exchange is only £2. Also, if you happen to make a bit too much profit on the exchange, watch out for the 2% premium charge that Betfair may take from your winnings. Otherwise, winnings are capped at 20% per week.
On the Betfair Exchange, punters can also enjoy live streaming of sport from around the world. Every week hundreds of events are available for Betfair customers to watch. They can also take part in live betting, which offers more options and changing odds than I have seen anywhere else. This makes sense as the Betfair interface is clean and even pretty if you like shades of blue and green. My only complaint is that the Betfair exchange allows you to fund your account with too few methods. If you are outside of the UK, the only way to get cash into your account is via bank transfer.
Pros:
Cons:
The Smarkets exchange went live in 2008, making it one of the newest of its kind on the web. The Smarkets betting exchange quickly attracted the interest of punters by offering a commission of just 2%, which is one of the few areas where they beat Betfair. Licensed by the UK Gambling Commission as well as leading authorities in Malta and Sweden, our Smarkets review found a number of appealing features. Punters who place over 1,500 bets per month will see the Smarkets commission fee drop to just 1%, while this also applies to customers who place $1,000,000 worth of bets over the same period.
The sports betting exchange Smarkets is considered one of the best for lay betting, especially when compared to Betfair. High liquidity makes Smarkets very attractive to those looking to place bets, with all sorts of graphics and charts available to punters looking to make a decision. New customers at Smarkets can claim a welcome bonus of £10.
The Smarkets betting exchange offers a feature called "Trade Out", which is similar to the cash-out option available on selected markets at Betfair. In fact, Smarkets is a major threat to Betfair's dominance because its site works exceptionally well on both mobile and desktop devices, and it has even received rave reviews in the App Store. Unlike other betting brands, Smarkets isn't distracted by a sportsbook or casino games, which means its app is completely focused on the business of providing an excellent trading platform for punters. Pros:
Cons:
Betdaq, founded in 2000, was acquired by Ladbrokes in 2013, giving them an estimated 7% market share in the UK and Ireland. All winning bets are subject to a 2% commission. Betdaq is one of the few betting exchanges to provide access to a public API. In certain markets Betdaq charges no commission at all, and its welcome bonus for new customers means they can also enjoy a month of completely commission free betting. Betdaq is an exchange, so it makes sense to first look at how this type of betting works.
There aren't many promotions at Betdaq at the moment. But if you place a bet of £10 or more on a virtual market, you can get a free bet of £10 with the promo code "V1010". So how do Betdaq and Betfair compare? They both have good liquidity. However, Betdaq offers fewer sports markets. In addition, since being acquired by Ladbrokes, Betdaq is one of the few exchanges that also has its own fixed odds platform. And they also offer trading tips. They're also a better deal in terms of commissions and rebates, as Betfair charges much more for the same service.
A big advantage of Betdaq is that there is no premium charge, meaning that those who win large amounts are not charged more, something that Betfair has in place. Betdaq has a mobile app that is easy to use and accessible to both iOS and Android customers. It works well on a variety of devices, and Betdaq's exchange site provides an easy and convenient user experience. Pros:
Cons:
The exchange at Ladbrokes, which has a long history as a traditional bookmaker, was opened to punters in the UK in 2013. The Ladbrokes Sportsbook is licensed by the Gambling Commission. Currently, there is no welcome bonus for new customers at the Ladbrokes exchange. However, you can claim £20 worth of free bets on their sportsbook site. The commission rate at Ladbrokes is 5%. However, punters who earn over 12,000 exchange commission points will see this rate drop to just 2%. These commission points are calculated based on a player's betting activity. The more you bet, the higher your potential to earn commission points. 1 exchange commission point is earned for every £25 bet placed on the Ladbrokes sportsbook.
Betfair competes with Ladbrokes on many levels when it comes to in-play betting and the live streaming experience. However, when it comes to overall sports coverage, Betfair cannot quite compete.
Trading at Ladbrokes allows customers to clearly see how the market is moving. Coupled with a detailed results page, this makes the process of choosing what to bet on much less risky. The Ladbrokes exchange site itself is easy to navigate on desktop and mobile, and there's an exchange app for iOS and Android that makes it even easier. Pros:
Cons:
Founded in 2004, Matchbook took some time to really get going and make any real waves in the room. They are now owned by Triplebet Ltd and it was really a major investment in 2011 that turned the ship around and saw them improve and get much better. The interface and user experience has been greatly improved recently and they are now attracting a lot of new customers mainly due to their very attractive and solid commission structure. They only charge 2% commission on net profits and 4% for everyone else. Also among their attractions are some of the best odds anywhere. In fact, their odds are better than what you would find on Betfair and that is one of the main reasons why they are growing so fast.
Unfortunately, there is no welcome bonus or matching promotions at Matchbook. However, since there is no sign up fee either, things tend to balance out at this bookmaker. The Matchbook sportsbook is licensed and regulated by the Gambling Commission. The sportsbooks offer notable features such as the three ways to contact customer support. Instead of an almost endless number of menus, you can choose between phone support, email support or live chat.
We also found a mobile app available for both iOS and Android users. However, unlike Betfair, Matchbook does not offer live streaming services to punters on their exchange. The Matchbook exchange site is one of the best around in terms of usability, with all markets and features easily accessible at all times. Those who have placed bets on the Betfair exchange in the past will quickly get used to Matchbook, with a number of similar features, including the blue and pink back and lay buttons. Pros:
Cons:
Betting exchanges offer better value than bookmakers and a wider variety of options because you can set your own odds. On an exchange, you can bet on the outcome of a sporting event, but you're betting against other users of the site, not against a house. This means that you're not limited in terms of odds as you are when using a site that operates more like a traditional sports book. Betting exchange users are effectively betting against each other, with some betting the event to succeed and others betting it to fail.
With bookmakers, the edge can be as much as 20%, which means that in many cases the odds offered are simply unfair. An exchange, however, is an entirely different animal. Its style is peer-to-peer, with markets dictated by the people who use them. As a result, wins are more likely to be profitable when compared side-by-side with the same bet placed at a bookmaker. That's just one of the reasons why an exchange is superior.
One of the disadvantages of betting exchanges is that they charge a commission. This can be as low as 2%. This means that it shouldn't affect your overall winnings too much, if at all. And if you make a net loss, you're off the hook.
Betting exchanges have other advantages as well. Many people who use them talk about the much greater number of betting options available. You can set your own odds and bets don't get canceled. All this, of course, makes betting exchanges a very attractive platform.
Matched betting sites are used by punters in order to guarantee for a profit, with this strategy also requiring a bonus or enhanced odds offer. No-risk matched betting generally allows for a profit, no matter what the outcome of markets are, because of the bonus itself, rather than the price. Using the Betfair Exchange as an example, punters must place a back bet with a bookie of your choice, which will mean that you qualify for a bonus or free bet, whilst also laying on the same market on the Betfair Exchange. Having done so, punters will then have their free bet to play with. Next, find a sports market of your choice, which must have similar odds as on the Betfair Exchange. Place the bet using your bonus or free bet, as well as laying on the Exchange, meaning that even if the bet wins or loses, a profit will be made.
When selecting a betting exchange, one of the most crucial factors to take into account is how its commission structure works. Betting exchanges make their money by taking a slice off the top of winning bets — your bets, if you're a winning bettor. They don't build their profit into the odds like traditional bookmakers do. So, even small differences in commission can really add up, especially if you're a regular or high-stakes bettor. For instance, if you were to consistently have a winning month with around £10,000 in winning bets, you'd be giving Betfair £500 for the same service that Smarkets would give you for just £200. Over a year, that's a huge difference — thousands of pounds in difference, frankly.
Here is a comprehensive contrast of the top exchanges, zeroing in not just on their commission rates but also on their concealed costs, charges for premiums, and loyalty payoffs:
| Betting Exchange | Standard Commission | Premium or Additional Fees | Special Benefits | Best For |
|---|---|---|---|---|
| Betfair | 5% | Premium Charge (2%+) for high earners | Loyalty discounts via Betfair Points | Highest liquidity, wide range of markets |
| Smarkets | 2% | No premium fees | 1% for very high-volume traders | Frequent traders, mobile-first users |
| Betdaq | 2% | No premium fees | 0% commission promo periods | Value hunters, casual bettors |
| Ladbrokes Exchange | 5% | No premium fees | Commission can drop to 2% with points | Bettors who also want a sportsbook |
| Matchbook | 2% on net profits | 4% in some regions/markets | Strong odds, low entry limits | Football and racing traders |
In contrast to Betfair, which holds an unrivaled position as the market leader with the deepest liquidity and the biggest range of betting options, Pinnacle is far less well-known. But Pinnacle has established a solid reputation among informed players and in certain betting circles and for good reason. Pinnacle provides overall better value than Betfair does. Conversely, Smarkets and Betdaq attract price-sensitive bettors because they charge a flat 2% commission and have no premium charges. Matchbook occupies a middle ground, offering not quite the sharpest of odds but a sufficiently modern and well-designed interface. It lacks a bit of liquidity compared to Betfair, certainly, but still more than many of its other competitors.
Main point: For casual gamblers, the commission may not register on small bets. But for serious wagerers or those trading regularly, picking a low-comm exchange can mean the difference between being in the black and being in the red. Many experienced players open accounts on multiple exchanges, letting them compare odds and fee structures across platforms.
Compared with traditional bookmakers, betting exchanges are much more flexible, and this makes possible a whole range of strategies that punters can use to get ahead. Exchanges don't just take bets; they operate as peer-to-peer markets where bets are offered and taken, and prices are found. In this dynamic environment, punters can use approaches that they couldn't even think of with a standard bookie, and with a suitable betting exchange, they can think like traders.
One of the most popular strategies for betting on sports is arbitrage betting. This involves taking advantage of the price differences between a bookmaker and an exchange. For example, if a bookmaker offers odds of 2.10 on a tennis player but the exchange has lay odds of 2.00, a punter can back the player with the bookmaker and lay them on the exchange. This locks in a guaranteed profit for the punter, regardless of the outcome. Hedging can also be used mid-event. This involves backing an outcome pre-match and then laying it once odds shorten to secure profit or reduce risk.
Numerous professional wagerers utilize exchanges as if they were financial marketplaces. They "purchase" a result (back bet) when they estimate the odds to be excessively high, and they "sell" it (lay bet) when the odds drop. This betting strategy is especially popular for horse racing and football, where the odds fluctuate drastically throughout an event. Success demands superb timing, extensive market knowledge, and access to highly liquid markets. Betfair works especially well for this strategy, due to its myriad of offerings.
Matched betting is a method with low risk that marries the free bet promotions offered by bookmakers with lay bets placed at betting exchanges. By backing a selection with the bookmaker and laying the same selection with the exchange, punters cover all outcomes and qualify for the free bet. When using the free bet, they again lay with the exchange, thus converting what was once promotional money into guaranteed cash. Matched betting is an activity many novices pursue, as it requires little in the way of sports knowledge yet offers seemingly reliable returns.
Because exchanges mirror actual user demand, their odds tend to be sharper than those of traditional sportsbooks. But this very sharpness creates opportunities. If a bettor can pinpoint outcomes that are consistently mispriced—by, say, 5%—compared to true probabilities, he can make +EV wagers that, over the long haul, will yield a greater return than betting arbitrage or taking sportsbook promotions. That’s because those two methods are essentially risk-free ways of earning interest on your capital, while a +EV strategy is way more fun (and is what I, personally, do).
Even though bookmaking companies concentrate on popular types of sports, betting exchanges are often places to find niche markets where the volume of money in play is low but the odds may be slightly wrong. People who have a good, solid understanding of a sport—whether that's football outside the English Premier League, darts, eSports, or some other game not often covered by bookies—can make bets on these markets and find themselves with long-term profits. As with any exchange, though, a lack of liquidity can slow things down.
Since exchanges permit both backing and laying, they can serve as a bankroll-preserving mechanism. Say you back a team to win a tournament outright, but halfway through the event, their odds have shortened dramatically. You can lay the team at a lower price to protect yourself from a loss that would have otherwise occurred had you let the bet ride till the end. This is a version of stop-loss betting, which professional gamblers have been using for years.
Wagering on a betting exchange is all about backing and laying, which punters must understand before getting involved. In simple terms, backing effectively means betting that a particular result will happen, with laying being wagering that it will not. Examples of the two options can be found below:
Betting exchanges may not be a new platform, however they are still overlooked by a number of punters. However, an increasing number of betting customers are now signing up at sites such as Betfair, Smarkets and Betdaq, with the draw of increased odds, greater freedom and lay bets being extremely appealing. You should now understand exactly how back and lay betting works, including the strategies used by punters, so be sure to check out some of our recommended betting exchanges for yourself.
Betfair is widely regarded as being the leading betting exchange available to punters in the UK, performing well when it comes to markets and odds. However, Smarkets, Betdaq, Matchbook and Ladbrokes also offer appealing platforms, so the choice is really yours.
Many have turned to a betting exchange due to the freedom in which such platforms offer. Both back and lay bets are available, something in which traditional bookmakers do not offer.
Unlike on a traditional bookmaker site, where bets are placed against the bookie itself, at betting exchanges, bets are made between punters. In effect, the exchange is between the two parties, with the site acting as an intermediary.
Betting exchanges tend to set commission rates at anywhere between 2% and 5%, with Smarkets offering a standard charge of 2%.
Betfair, Smarkets and Betdaq are among the best exchanges for high stake liquidity, with betting on such platforms being appealing to those with larger budgets as a result.