Traditional bookmakers build margin into their prices. Exchanges charge a commission on net winnings. Each model has different implications for your long-term ROI.
Last updated June 2026
| Feature | Bookmaker (e.g. Pinnacle) | Exchange (e.g. Betfair) |
|---|---|---|
| You bet against | The bookmaker | Other users |
| How they profit | Margin baked into odds | Commission on net winnings |
| Typical cost | 2–7% margin | 2–5% commission on profit |
| Can you lay (bet against)? | No | Yes |
| Odds source | Set by the bookmaker | Set by market supply/demand |
| Account restrictions | Some books do restrict | Never restricts for winning |
| Liquidity on niche markets | Good (book takes the risk) | Poor (needs matching money) |
| Liquidity on major markets | Good | Excellent (for top leagues) |
| Learning curve | Low | Moderate |
The answer depends on the market and your win rate. The exchange charges 2–5% only on net winnings — so if you break even, you pay nothing. The bookmaker's margin is charged on every bet regardless of result, embedded in the odds.
Example: You bet £100 at 2.00 (50% implied probability, true fair value 2.00).
At a bookmaker with 5% margin: the real odds are ~1.90; expected cost = £5
At an exchange at 2.00 with 5% commission: you win £100, pay £5 commission; net = £95
On a fair-priced winning bet, the costs are comparable. But the exchange gives you the better price — and never restricts you.