What is the Smarkets commission structure?

As the original 2% commission exchange, our Standard Tier of commission is 2% on net profits per market only.

In addition, we have two further tiers for the most active and profitable Smarkets users:

• A 1% Pro Tier. Anyone who places more than 1500 bets or stakes more than £1m in a calendar month will have to opt in to the Pro Tier to continue trading on Smarkets. 
  
  
• A 3% Select Tier which is applied to a very small number of the most profitable Smarkets users who exceed £25,000 in net profit over the previous 12 calendar months.

 

Will I hit one of the above limits?

Only 0.2% of our current customer base that will place more than 1500 bets, stake more than £1m in a calendar month, or reach £25,000 in net profit over the previous 12 calendar months.

However, if you do reach one of the two limits for the Pro Tier, then you will need to opt in to the Pro Tier to continue trading on Smarkets. If you exceed the Select Tier profit threshold, you will have it applied to your account.

To make it easy for users to see where they are in relation to the limits, we have a Trading Stats & Commission page which shows you your recent commission metrics. Find it via the account drop-down or by going to smarkets.com/account/stats when logged in.

The two metrics related to the Pro Tier (bets placed and amount staked) will reset on the 1st of each month, while the figure calculated in relation to the Select Tier will be based on the previous 12 calendar months’ net profit.

Which metrics are the commission limits based on?

For the Pro Tier

Number of Bets Placed: This is the number of individual bets - whether that be backing or laying - that are placed on Smarkets.

Amount Staked: This is the liability of all bets placed on Smarkets.

It’s important to note that these metrics are based on all bets placed, whether they are unmatched, partially matched or fully matched. The limits are based on the initial bet placement.

For example, you place a £100 back bet at odds of 5.0 and £82 of it is matched. The price then moves and you cancel the remaining unmatched portion of your bet before placing another £18 bet at odds of 4.9 which is matched, so your £100 bet is split between odds of 5.0 and 4.9. In this instance, £118 would be added to your amount staked counter and two bets would be added to your bets placed counter (one £100 bet placed and one £18 bet placed).

For the Select Tier

Net Profit: The net profit for your account over the previous 12 calendar months.

For example, on 15 February 2020 we would calculate whether you have exceeded the £25,000 net profit limit by using your net P&L figure from 1 February 2019 - 31 January 2020. Then, once March begins we would use the 12-month P&L figure from 1 March 2019 - 29 February 2020.

How do I opt in to the Pro Tier? Can anyone opt in?

Only users who have gone past an 80% threshold of either limit for the Pro Tier can opt in. To opt in, you must contact our customer service team, who will then apply the new rate to your account.

I’m on the Select Tier, do the bet and stake limits for the Pro Tier apply?

No. If you are on the Select Tier, then the limits of 1,500 bets placed and £1m staked per calendar month needed to remain on the Standard Tier do not apply.

What exactly is the commission structure of the Pro and Select Tiers?

If you opt in to the Pro Tier or have the Select Tier applied, you will pay commission per each individual matched bet that settles (1% for Pro Tier, 3% for Select Tier), either on the profit if it wins or the losses if it loses.

Examples (using 1% Pro Tier):

Your £10 back bet at odds of 4.0 wins, meaning a £30 profit. You pay 1% commission on the winnings (£0.30), resulting in a £29.70 profit.

Your £10 back bet at odds of 4.0 loses. You pay 1% commission on the losses (£0.10), resulting in a £10.10 loss.

Your £10 lay bet at odds of 4.0 wins, meaning a £10 profit. You pay 1% commission on the winnings (£0.10), resulting in a £9.90 profit.

Your £10 lay bet at odds of 4.0 loses, meaning a loss of £30. You pay 1% commission on the losses, resulting in a £30.30 loss.

Example when placing multiple bets in a market:

You place a £10 winning back bet at odds of 4.0 and a losing lay bet at odds of 3.0 on the same contract. Your back bet wins you £30. You pay 1% commission on the winnings (£0.30), resulting in a profit on this bet of £29.70.

Your lay bet loses you £20. You pay 1% commission on the losses (£0.20), resulting in a £20.20 loss.
Overall, your final profit on the market can be calculated as £29.70 - £20.20 = £9.50. Note the commission charge on both the winning and losing bets in the market.

Can you close out your positions once you hit one of the limits for the Pro Tier?

No, but we will alert you when you hit 80% of either limit. You can easily opt in to the Pro Tier once you pass an 80% threshold for either Standard Tier limit by getting in touch with customer support. You can then continue trading.

I’ve hit one of the limits for the Pro Tier, what can I do to keep trading on Smarkets?

You must opt in to the Pro Tier. You won’t automatically be put on the Pro commission structure. To confirm that you wish to have the Pro Tier applied to your account, get in touch with our customer service team.

If I am being moved to the Select Tier, when do I find out I am being switched?

Users whose accounts are eligible to be charged the Select Tier commission rate will be notified of this by email 7 days in advance of their account moving to the Select Tier commission rate.

At what point does any new commission structure apply?

Once your account has moved to the Pro or Select Tiers, it applies to all trading activity. So, to be clear, the new rate is not only applicable to all bets placed after your new tier is applied, rather all of the account’s trading activity, after switching, is charged at your new rate.

Once I opt in to the Pro Tier, can I opt back out?

Yes, but only after three months. If after three months you decide that you would prefer to be on the Standard Tier with its limits then you can switch back. To do so, please get in touch with our customer service team.

If my P&L drops below the Select Tier threshold, can I have my tier reviewed?

If your net P&L over the previous 12 calendar months falls below £25,000 you can apply to have your commission rate reviewed and amended at Smarkets’ discretion. To do so, please contact our customer service team.

I’m on a 0% commission promotion. Will I still get 0% if I opt in to the Pro Tier or have the Select Tier applied?

You will forfeit any commission promotion if opting in to the Pro Tier or having the Select Tier applied to your account.

Can I read more about this?

Yes. Our CEO wrote more about commission tiers and the reasoning behind them on our HQ blog when the Pro Tier was introduced in 2018.