Premium rate bet fair what despite its cool name and seem to be something good, bet fair’s premium rate is surtax on its most profitable customers. It is estimated that about 0.5% of bet fair’s customer base is subject to that rate. Therefore, instead of paying only the standard bet fair 6.5% commission, you will pay an extra commission for your earned profits. The premium rate is only applied on the bet fair Exchange market, so it is a charge naturally imposed on traders, not punters or recreational gamblers who use other Bet fair products, such as the sports book or even casinos, slots, among others.
To start paying those damn fees, your account must meet these prerequisites:
Your account has to be positive. (Your balance has to be positive; this account is over the lifetime of your betfair account).
Have paid less than 20% of fees on your profits
(If you have earned 1000 and paid more than 200 in fees there will be no premium rates). This is undoubtedly the most difficult criterion to achieve. You can make money all your life at betfair and never is below 20%.
Have operated in at least 250 markets
So we can already realize that it’s not that simple. We must already have some consistency in the market. And to calculate the premium rate, Betfair has the following calculation, the lowest value being between:
The difference between 20% of the gross profits of the previous week and the total of charges generated during the week. The difference between 20% of gross profits and the total of fees generated during the entire account activity. Since any winning bet representing more than 50% of the gross profit is naturally excluded from the calculation. And every customer will have a tolerance of € 1000, so it is a margin you have before you start to pay them effectively.
So it’s important to make it clear that not everyone who earns money on Betfair pays premium rates. It is possible that you will earn lots of money for many years and will never be taxed. If you do not have consistent Betfair profits, you will not fall into Premium rates. Now if you pay premium rates it is yes that you are earning money and met a number of requirements to fall in the premium rates.
Is that you? Already a trader is a profitable trader?
Hopefully you will not have to pay Betfair premium rates ever, but if you have to pay, it will not be such bad news. After all, that means you’re a profitable trader, is not it? And to get there, the Betting Club has a series of courses to help you, whether you’ve been betting for some time or even starting now.
Personally, I think Premium rates are such a bummer because we’ve all paid the base rate that is around 6.5% in winning deals. It’s as if Betfair was telling you, ” since you’re making a lot of money, you get a little more commission here. ” But anyway, it would be nice if we all paid the damn premium rate, at least we would be making money on Betfair.
Even if we are taxed and discounted our earnings, take a look at the exchange. In the worst case scenario, you are earning in dollars with a 3.30 exchange rate, that is: the exchange gives us any rate and much more. Receiving dollar, euro or pound, for us Brazilians is an absurd advantage, as we multiply our profit by 3 to 4 times. In the video I explain showing in a real account how Premium rates work, you will be clearer to understand by the video. But Premium rates are something you should not worry about; let her go there, worry about your trade that is what really matters.