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.
We also have a 1% Pro Tier for the most active Smarkets users. 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, where 1% commission is charged on winnings or losses per each individual bet that settles.
Smarkets CEO Jason Trost has written more about the Pro Tier on our HQ blog.
Will I hit one of the Standard Tier limits?
It’s very unlikely that you are part of the 0.2% of our customer base that will place more than 1500 bets or stake more than £1m in a calendar month.
However, if you do reach either of these limits then you will need to opt in to the Pro Tier to continue trading on Smarkets.
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 commission metrics for both the current and previous months. Find it via the account drop-down or by going to smarkets.com/account/stats when logged in.
The two metrics will reset on the 1st of each month.
Which metrics are the Standard Tier commission limits based on?
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 Standard Tier 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).
How do I opt in to the Pro Tier? Can anyone opt in?
Only users who have gone past an 80% threshold of either Standard Tier limit can opt in to the Pro Tier. To opt in, you must contact our customer service team, who will then apply the new rate to your account.
What exactly is the commission structure of the Pro Tier?
If you opt in to the Pro Tier, you will pay 1% commission per each individual matched bet that settles, either on the profit if it wins or the losses if it loses.
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 two Standard Tier limits?
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 Standard Tier limits, 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 opt in at what point does the new commission structure apply?
Once you have opted in to the Pro Tier, it applies to all trading activity. So, to be clear, the new rate is not only applicable to all bets placed after hitting either limit each month, rather all of the account’s trading activity, after opting in, is charged at the 1% 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.
I’m on a 0% commission promotion. Will I still get 0% if I opt in to the Pro Tier?
You will forfeit any commission promotion if opting in to the Pro Tier.