Smarkets is a betting-based exchange and prediction market platform that allows you to trade bets peer-to-peer, rather than against a bookmaker. It is a London-based entity that allows users to back or lay outcomes. That creates a market based on supply and demand. The best thing about Smarkets is that they charge a flat 2% commission on net profits, thus offering more value than a traditional bookmaker.
How the Exchange Model Works on Smarkets
1. In a stock market, there are buyers and sellers. In this betting exchange, similarly, one user backs and another lays. The odds form between the users and are not set by the house.
2. If you back Real Madrid at odds of 1.5 with a £20 bet, then you will win £10 if they win or lose the £20 if they lose. As the commission is paid on net winnings, you only pay the commission if you win.
3. And if you bet on Real Madrid, it means that you bet against them winning. It means you collect the stake if they don’t win. The stakes and liabilities are displayed clearly before placing any bet on Smarkets.
Why Smarkets Stands Out
1. Lower costs: Traditional bookmakers have a 10-20% margin. Even platforms like Betfair charge ~5% but Smarkets charges one of the lowest commissions of 2% on the net profits.
2. Transparency and fairness: Markets often trend near 100% total probability—unlike bookmaker over-rounds (~112%) that reduce bettor value.
3. Flexibility and liquidity: Smarkets users have a lot of options. They can trade or hedge positions mid-market if they want to. They can also cash out early or choose to lock profits before the final result via the “Trade Out” feature.
4. All winners are welcome: Smarkets does not restrict or close winning accounts based on performance, like bookmakers might. They welcome matched bettors and arbitrage users.
Betting Markets & Platform Features
1. Wide sports selection: The available sports include football, horse racing, cricket, tennis, rugby, darts, e-sports, politics, and entertainment markets are available too.
2. High-quality user interface: The user interface of Smarkets is clean and minimalistic. It is optimised for veteran traders but also beginners. The platform is available on both desktop and mobile, with in-play markets and live odds.
3. Real-time technology & uptime: The platform uses a financial-grade technology that ensures a 99.99% uptime. The matching on in-play markets is instant with automated voiding if events like goals occur within 8 seconds to ensure fairness.
Trust, Security & Regulation
1. The platform is licensed and regulated by the UK Gambling Commission and the Malta Gaming Authority.
2. Smarkets provides secure deposit and withdrawal methods like bank transfer, PayPal, Skrill, etc. The funds are held in segregated accounts, and the withdrawals are fast and fee-free.
3. Responsible gambling tools: The platform offers tools that make gambling responsible. Tools like deposit limits, cool-off periods, reality checks, and self-exclusion options are standard on the platform.
Matched Betting Friendly
Smarkets is a go-to platform for matched bettors: you can back using a bookmaker’s free bet and lay it via Smarkets to guarantee profit. The low commission (only on net profits) maximizes returns over time.
Summary
| Feature | Feature |
| Platform Type | Peer-to-peer betting exchange |
| Commission | 2% on net market profits only |
| Betting Options | Back or lay, cash out, trade out anytime |
| Markets Covered | Broad: sports, politics, entertainment |
| User Experience | Modern interface with high uptime |
| Security & Licensing | UKGC & MGA licensed, secure, and regulated |
| Ideal For | Value-seekers, matched bettors, smarter traders |
