Smarkets charges a flat commission on net winnings with no Premium Charge, so for consistent large winners it's meaningfully cheaper than Betfair's 2% base. For ordinary traders the headline rates are close, and Betfair's far deeper liquidity often saves more in better fills than Smarkets saves in commission. The cheaper venue depends on your market's depth.
This is a cluster sub of our pillar, Betfair vs competitors, and it pairs with the broader verdict in is Betfair still the best exchange in 2026?. This page does one job properly: the commission maths, with numbers, so you can decide for your own staking level.
How each exchange charges commission
Both exchanges charge on the same principle: commission applies only to your net winnings in a market. You never pay to place a bet, and you never pay commission on a losing market. After a market settles, the percentage is taken from your net profit in it. So the only question that matters is the percentage — and the surcharges layered on top. The mechanics of how net market profit is calculated are in commission explained; run any scenario through the calculator.
The headline rates side by side
At the headline level, the two are closer than Smarkets' marketing implies. Betfair's UK base is 2%; Smarkets runs a flat rate in the same ballpark. Where Smarkets genuinely separates itself is the absence of a Premium Charge and a simpler, flatter structure with no market-by-market base-rate variation.
| Cost element | Betfair | Smarkets |
|---|---|---|
| Commission basis | Net market winnings | Net market winnings |
| UK base rate | 2% (varies by market/discount) | Flat, ~2% class rate |
| Charge on losses | None | None |
| Premium Charge | Yes — small minority of winners | No |
| Structure | Market-dependent base + discount rate | Flat and simple |
| Liquidity | Deepest of any exchange | Much lower |
The Premium Charge: the real gap
If you take nothing else from this page, take this: the commission difference that actually matters between Betfair and Smarkets is the Premium Charge, not the base rate. Betfair applies an additional charge to a small set of accounts that win consistently and heavily relative to the commission they've paid. Smarkets has no equivalent.
For the overwhelming majority of part-time traders, this is irrelevant — you'll never come close to triggering it, so the base rates are what you compare, and they're similar. But if you're a high-volume, consistently profitable trader, the Premium Charge can lift your effective Betfair cost well above Smarkets', and that's the scenario where switching real money to Smarkets makes hard financial sense. The full mechanics are in our Premium Charge guide.
I keep parallel records, so here's a real comparison from a profitable week of pre-off racing trading in April 2026, costed on each exchange's commission as if I'd run the identical book on both.
The week: net winnings across settled markets of £640, spread over roughly 90 small scalps and swings, none large enough to trigger the Premium Charge.
Betfair (2% base): commission of about £12.80 on the week. No Premium Charge at this volume.
Smarkets (flat ~2%): commission of roughly £12.20 — about 60p cheaper across the whole week.
The honest conclusion: at my volume the commission gap was trivial — under a pound on a £640 week. What was not trivial was liquidity: several of those 90 scalps simply filled better on Betfair because the money was there. The fill quality was worth far more to me than the 60p. For a trader at ten times my stakes who did face the Premium Charge, the maths would flip hard toward Smarkets. The rate gap is small until the Premium Charge enters — then it's the whole decision.
The slippage trap
This is where the lower-commission pitch most often misleads people. Commission is a known, visible cost. Slippage — getting matched at a worse price than you wanted, or only getting part of your stake filled — is an invisible cost, and on a thin exchange it's bigger than it looks.
If you move to Smarkets purely for the lower commission but trade markets where its liquidity is thinner, the slippage on your entries and exits can quietly cost more than the commission you saved. I've watched traders celebrate a lower fee while bleeding more on bad fills. Always weigh the total cost — commission plus slippage — not the headline rate. And remember: neither exchange makes a losing strategy profitable. Most traders lose money regardless of fees.
The practical test is simple: in the specific markets you trade, can Smarkets fill your typical stake at the price you want? If yes, the lower commission is a real saving. If the depth isn't there, Betfair's liquidity will usually out-earn the fee difference — the dynamic explained fully in Betfair vs Betdaq liquidity and the verdict piece is Betfair still the best exchange.
Verdict: who each suits
Choose Smarkets if: you're a consistent, high-volume winner realistically facing the Premium Charge; you value a flat, simple fee structure; or you trade markets liquid enough on Smarkets that fills don't suffer. The saving is real and compounds.
Choose Betfair if: you scalp or trade in-play where fast fills decide the trade; you trade UK/Irish racing or football where Betfair's depth is unmatched; or your stakes are large enough that slippage on a thin market would dwarf any fee saving.
Or do what I do: hold both. It costs nothing, and you route each trade to wherever the total cost is lowest. For the side-by-side feature view see our full Betfair vs Smarkets comparison, and for the wider field best alternatives and Betfair vs Matchbook.
Commission is only one cost. Weigh it against liquidity for the markets you actually trade, and consider holding both accounts to get the best of each.
Full Comparison Open Betfair Account →The commission maths, in plain numbers
Let's strip the comparison to arithmetic so you can apply it to your own staking. Say you win £100 net in a single market. At a flat 2%, both exchanges take £2, leaving you £98. Identical. The difference only appears in two places: when Betfair's discount rate drops your effective rate below 2% (Betfair pulls ahead), or when the Premium Charge lifts your effective Betfair cost above Smarkets' flat rate (Smarkets pulls ahead).
For a part-time trader winning, say, £2,000 net across a year, the commission either way is roughly £40 — a difference between the two of a few pounds at most. That's the level where I tell people to ignore commission entirely and choose on liquidity and interface. It's only when annual net winnings climb into the territory where the Premium Charge bites that the gap becomes hundreds or thousands of pounds — and at that point the decision makes itself. Model your own figure in the calculator rather than trusting a marketing headline either way.
Betfair's discount rate vs Smarkets' flat model
One nuance the headline comparison hides is Betfair's discount rate. Betfair rewards activity: the more commission you generate over time, the more your effective rate can be discounted from the base, through the Betfair Points system that lowers your commission as your weekly activity rises. In practice this means an active Betfair trader's effective rate can sit below the 2% headline, narrowing the gap to Smarkets further than the sticker numbers suggest.
Smarkets takes the opposite philosophy: a flat rate, the same for everyone, no points to accrue and no tiering to track. There's a real appeal to that simplicity — you always know exactly what a winning market will cost, with no mental arithmetic about your current discount band. Which model you prefer is partly temperament: Betfair rewards the grinder who racks up activity; Smarkets rewards the trader who just wants a predictable, low, flat number. Neither is universally "cheaper" until you know your own volume, which is exactly why the calculator and your own logged results beat any general rule.
Beyond commission: what else separates them
Commission gets all the attention, but if you're choosing a primary exchange, three non-fee factors matter just as much in daily use.
Interface and ladder support. Betfair's long head start means the deepest third-party ecosystem — Bet Angel, Geeks Toy and almost every bot support it first. Smarkets has a clean native interface and a growing tool list, but if you rely on a specific ladder or automation, check it supports Smarkets before you commit. The full landscape is in best Betfair trading software 2026.
Market breadth. Betfair lists a far wider range of markets and sports, including the long tail of minor events. Smarkets concentrates on the mainstream. If you trade niche markets, Betfair is often the only place they're liquid at all.
Premium Charge predictability. For a winning trader, the uncertainty of whether you'll eventually meet Betfair's Premium Charge is itself a reason some choose Smarkets — not just the charge, but knowing your cost ceiling won't move. That psychological clarity is worth something even before the maths. See the full breakdown in our Premium Charge guide.
Related reading
Stay in the cluster: Betfair vs competitors pillar, is Betfair still the best exchange?, Betfair vs Betdaq liquidity, Betfair vs Matchbook.
Go deeper: Smarkets comparison, commission explained, Premium Charge, and the calculator.
FAQ
Is Smarkets commission lower than Betfair? Headline rates are similar (~2%), but Smarkets has no Premium Charge, so it's meaningfully cheaper for consistent large winners.
Does the lower fee make Smarkets better? Not always — its lower liquidity can cost more in slippage than the commission saved. It wins when your markets are liquid enough on Smarkets.
How is commission calculated? Both charge a percentage of your net winnings in a market only — never on losses or on placing a bet.
Should I use both? Many traders do — Betfair for liquidity-critical trades, Smarkets where fees dominate and depth is adequate. Holding both is free.
Who is the Premium Charge relevant to? Only a small minority of consistently large winners on Betfair. Most part-time traders never trigger it.
Will switching exchanges make me profitable? No. Fees don't fix a losing strategy; the edge has to come from your trading.
18+. Gambling involves risk and most traders lose money on either exchange. A lower commission won't change that. Past results don't guarantee future returns. Use BeGambleAware.org if betting stops being fun.