Person-to-person betting exchanges act as the middle man allowing customers to bet against each other. You can back a selection to win, lay it to lose or trade the odds, by backing and laying the same horse at different odds. They also allow you to bet in-running during a race.
Betfair is the market leader with the highest turnover of bets. They charge commission of 2% – 5% of your net winnings, but that’s more than offset by the better odds. The more you bet the less commission you pay.
Betdaq is a sports betting exchange, owned by Ladbrokes. They offer betting on horse racing in the UK, Ireland, US and South Africa. Commission is layered in that the more you bet the lower the rate.
Smarkets is a betting exchange that offers a secure and transparent platform for trading on sporting, political and current affairs events. They have good liquidity in their betting markets and only charge commission at a flat rate of 2%.