How Does It Work?

Our definition may have seemed confusing, but allow us to shed more light on how exchanges work. The best analogy is to see betting exchanges as a bridge that links several bettors. 

Unlike regular bookmakers, they don’t mandate you to place bets at their fixed odds. Instead, you choose the odds you would like to stake at, then your exchange finds another player interested in playing at the same odds, then they match you against each other.

Otherwise, you could also find other players’ odds suitable for you; then, you bet against it.

However, since you are betting against each other, it is logically impossible to use the same betting options.

So how do exchanges pull it off?

Well, they use back and lay bets.

Back and Lay Bets For Dummies

To understand back and lay bets, we will relate it with traditional bookmakers as usual. On your regular bookie, irrespective of the numerous betting options you find, they fall under one category— back bet.

Everything involves backing a team, an event, an outcome, or whatever you are staking on.

Exchanges also allow you to place back bets, but they give you a little more— lay bet.

A lay bet is the opposite of a back bet, which means you are betting against an outcome.

If a back bet is betting on a team to win a game, then a lay bet is betting on the team to lose the game. And these two betting types are how exchanges match players against each other.

For every back bet, you place successfully at a certain odds, another player places a lay bet on the same event at the opposite odds.

When your back bet wins, the amount you receive is what the opposite player staked and lost. And if your back bet loses, the amount you lose is what the lay bettor wins. 

Sports trading

Exchanges expose you to price charts, hence, the name, sports trading, because it is very synonymous with stock trading.

Price movements generate your profit when you back or lay an event.

For instance, when you back an event at a certain price, the price has to move lower to profit from it.

And to take your profits, you sell your open position when you lay at a lower price.

Matched betting

Matched betting is a popular strategy that allows you to profit from bonuses offered by traditional bookmakers.

To enjoy it best, players look for bookies that offer incentives like free bet and no deposit bonus— these offers allow you to bet with almost zero risk.

Most importantly, you need to have an account with both an exchange and a traditional bookie.

Do you want to dig deeper? Here is our step-by-step matched betting tutorial for beginners!

The first thing is to look for an event with good odds that will guarantee high profits; then, you use your traditional bookie to place a back bet on it.

You then head to your exchange to look for the same event. This time, you place a lay bet on the same event, so your two bets match oppositely.

You successfully place yourself in an inevitable winning situation by executing it because it is certain that one of them would come in your favor.

And you also executed it with very little risk. To make the most from matched betting, some calculators help evaluate potential win amounts so that you will know if the event is worth the strategy.

Why Should I Use a Betting Exchange?

A sports betting exchange presents many great advantages to you as a bettor. Have a look at the pros:

• Exchanges allow you not only to bet for but also against outcomes or events.
• You have the liberty of betting at your desired odds on a betting exchange for US players
• Exchanges only charge commissions on your winning trades
• Betting in an exchange exposes you to raw price movements

Reliability

Reliability is a very big deal when considering an exchange. If a brand cannot pass the reliability test, you should not give it a second thought.

How do you know if a brand is reliable?

The first and most important is to check for any licenses or regulations from a legit gambling body.

Technically, a brand without a valid license is operating illegally. And those who use their services are doing so at their own risk. If an unlicensed brand were to scam you, there is almost nothing you can do about it.

It is equally important to ensure the license is from a well-known body. The UK Gambling Commission and the Malta Gaming Authority are some of the most reputable ones.

Another thing that dictates reliability is the customer base. Brands that have longer periods in the business tend to have more customers, which shows a form of accountability.

So, you should also consider how long they’ve been in business to ascertain their loyalty to customers.

Liquidity

Liquidity refers to the circulation of money within an exchange. If an exchange does not have enough money flow, you may not be able to place your bet.

When bettors are not active on an exchange, there would be no one to take the opposite end of your stake, leading to an unmatched bet.

Or, if you are lucky, you may get it partially matched to a trader whose odds are close to yours.

Logically, the liquidity of the exchange is directly proportional to the number of traders registered on the platform.

So it is important to always check for the customer base of an exchange.

Range of Markets

We would never recommend anyone to settle for a monotonic exchange. Even if you mainly bet on one sport, it is still important to look for brands with a bit of variety.

You can explore and try out your skills in different markets. Besides, more markets mean more players would be on the platform, which improves liquidity.

Most players tend to focus on sports like horse racing and soccer in an exchange.

However, little do you know that some of the strategies are applicable in other sports like tennis, which is equally volatile. An exchange with a good market range would help you discover such interesting options.

Commission

As much as you may not like commissions, you need to understand that exchanges too should make profits.

The ideal rate of commissions is about 3% to 5%, and on special occasions, you may enjoy 0% to 2% commissions. However, some brands tend to take it to the extreme.

Top exchanges charge commissions only on winning trades. But, some brands will still charge you enormous commissions, even on losing trades.

It may seem like small percentages, but you will understand it better when you start placing bets.

Welcome Bonuses

The stereotype most bettors have is that only traditional bookies offer welcome bonuses.

While that was true in the past, things are changing, and exchanges are evolving.

Welcome bonuses are great ways to thank new sign-ups for registering on their platform. And online betting exchanges are gradually catching up with the trend as they offer great bonuses, just like bookmakers.

Some exchanges take it to the next level to include loyalty programs and rewards for existing players.

We consider these little gestures very important as they speak a lot about how much a brand cherishes its customers. You should also consider it because bonuses allow you to win with minimal risks.

Payment Methods

Your money doesn’t automatically appear in a betting exchange USA. And the only way you can complete the transaction is through the payment methods they offer.

If you can’t find the options you like or are familiar with, you will have a hard time getting your money into the exchange.

The same goes for withdrawals, as players are always seeking safe options that will get their money to them fast.

The best and most common options are e-wallets, credit/debit cards, and bank transfers for large transactions.

You may be familiar with some other methods, but it is best to stick with the trusted ones.

Not being able to withdraw your hard-earned money is not an experience any trader should face.

Usability

The usability of exchange doesn’t mean being able to place trades alone. Most exchanges now have mobile applications which make things easier for traders.

What does their website look like? Are the buttons large and visible? Is it responsive to clicking?

These are a few of many questions you should ask yourself about how usable the betting platform is.

You should also factor in the mobile view. If a platform fails the usability test, you will lose it in the long run.

Support

Sometimes you will run into issues on your exchange, and we agree that it happens once in a while. However, there should be customer support readily available to help.

Several brands have very non-existent support that only responds to emails once in 24 hours.

We prioritize brands with highly responsive support systems like live chat and great availability. 

Prophet Exchange

Prophet Exchange boasts as the first peer-to-peer US betting exchange. This brand is still in the works, and they haven’t launched their services fully.

For now, they are still undergoing testing with the New Jersey Division of Gaming Enforcement (NJDGE). And once they check off, they will fully commence their operations in New Jersey.

Sporttrade Exchange

Sporttrade tags itself as the first dynamic sports betting and trading exchange. They are a Philadelphia-based company that promises to penetrate the gambling markets in the US by providing exclusive trading services.

They speculate a 2022 launch in New Jersey while extending to other states in the same year.

Betdex Exchange

Betdex is a betting exchange in the works, and they plan on bringing decentralized sports betting exchange into existence.

It is a crypto sports betting exchange, but rather than using Bitcoin, Betdex focuses on the Solana network, which boasts of being the fastest blockchain globally. Betdex is set to launch in 2022 also.

What is the Best Football Betting Exchange?

We can only make choices based on speculations, as most of the exchanges are not full-blown. From analysis, Betdex seems to be tilted towards football trading more than the others.

In fact, the sample image on their website is a chart of Manchester United Vs. Manchester City.

If Betdex can execute its plans flawlessly, it will compete on a global scale.

Decentralized exchanges are still on the rise, and Betdex is about to join the race to the top.

You may also like: List of the best international football exchanges

What is the Best eSports Betting Exchange?

The companies have not announced a full list of sports they will support, so this is also based on research and speculation.

After snooping into the exchanges’ respective social media accounts, one that stands out for the place of the best eSports exchange for Americans is Prophet Exchange.

The brand’s CEO is no stranger to iGaming events, as he attends and even comes as a speaker for a few.

This little gesture speaks volumes about his interest, which indirectly speaks volumes for his brand. For that reason, Prophet Exchange looks promising for eSports events.

Is there a Betting Exchange in the USA?

There are no active exchanges in the USA; however, several brands are promising a launch later in 2022.

How to Choose the Best Betting Exchange?

Although your choice is your personal decision, we provided you with things to pay attention to when scouting for an exchange. Follow those eight requirements, and you will find yourself the best.

What is the Best Exchange in the US?

It is almost impossible to point fingers; however, we provided the most promising exchanges in this review. Be sure to check it out.

What are the main betting exchanges?

Although there is no active exchange in the US, a few have promised to launch in 2022. They are Prophet, Sporttrade, and Betdex.

Are Betting Exchanges Legal in the US?

Yes, they are legal. However, the law only allows you to get matched with players within your state.