What is Exchange Commission?

Exchange commission is the fee a betting exchange charges on net winnings, and it is how the platform earns money instead of building margin into the odds. It is normally a percentage applied per market to your net profit; losing bets are not charged. Worked example: you back a selection at 3.00 for €100 and it wins, returning €200 profit. At 5% commission the exchange deducts €10, leaving €190 net. Had the bet lost, no commission would apply. Some exchanges cut the rate for high-volume users, others charge on gross winnings, so the headline percentage alone does not tell you the true cost. Commission also changes break-even maths: an apparently better exchange price can end up level with, or worse than, a bookmaker's price once the fee comes off. Compare after-commission returns rather than displayed odds.