I Do Not Believe It Mr Black

Finally, at the second time of asking, Betfair sent me an up to date premium charge statement. As suspected, they have me clearly in their sights.

Indeed, I have been 'paying' the premium charge since the middle of July. This has been going towards my £1000 allowance which has now been reduced to £863.10. Given my current performance, it won't be too long before that has been used up and I'll have the charge directly removed from my account.

I have a couple of issues with this statement though.

According to Betfair's Terms and Conditions, customers are only liable for the premium charge if their account is in profit, and I quote...

"You’ll only be considered for the Premium Charge if your account is in profit over the previous 60 weeks"

Now I only started trading back in February and, as reported a few days ago, my account has only just moved into the black. Therefore, by definition, my account could not have been in profit when those charges started to be applied back in July. I am therefore at a loss why the charges have been backdated to then.

My statement for last week saw premium charges of £22.28 being applied on a gross profit of £150.81. I paid £12.38 (8.2%) on those winnings. This, coupled with the premium charge means fees payable on those winnings reach 23% which is quite outrageous. This figure is in line with those reported by other Betfairians. So much for not paying more than 20% of your winnings!

In the full period covered by the statement, I have made a gross profit of £1788.06 and paid £253.07 in commission charges. An additional £114.63 would have been due thanks to the premium charge. This works out at total charges of 20.6% though this figure doesn't tell the whole story as the first 5-6 months of the charging period I was a consistent loser rather than a winner.

What really riles me more than anything though is, as regular readers will know, I can hardly be described as a high roller as far as my trading is concerned. I spend upwards of 8-9 hours per day parked in front of my computer manually trading the markets. I do not use bots or any other form of automation other than the one click interface provided by BinarySoft BDI. Last week I made £150 before commission for my efforts - and that was a good week. But that works out at less than the minimum wage.

Now, if virtually a quarter of that profit is to be taken in commission and charges, one has got to ask if it is really worth the effort? Just as I get my account into the black; just as I start to realise the dream, those buggers are about to take it away again.

I have to wonder though, if my meagre returns put me in the top 0.5%, then the rest of the Betfair community must be really crap at what they do. 0.5% my arse. I just do not believe it Mr Black.

1 comment:

Anonymous said...

Alistair, they've already altered the rules.
go read this a comprehensive easy to read item on it all ;
http://www.punt.com/2008/08/index.html
Smokey