You pay no commission on your losses and between 3% - 5% on your winnings (per market), depending upon your levels of trade.

Your Spreadfair commission rate is determined by the number of commission points you have; the more commission points earned, the lower your commission rate. You earn one commission point for every £100 of realised profit or loss (per market) that goes through your Spreadfair account.

How Commission is calculated:

Commission on long term bets:

Commission is paid when a long term position is closed and is calculated on a per trade basis. The rate applied is the rate you are on when the bet is closed, not when the bet is struck. For example, you bought Arsenal season points when your commission rate was 5% and the bet is settled in May when your commission rate is 4%, then you will pay 4% on any winnings you make from the bet.

Commission on house price spread betting markets:

Commission on house prices is charged differently to other Spreadfair markets. There will be an annual commission charge on each market of 1 unit per year, which will be deducted quarterly based on your average open position, whether long or short. In addition, commission of 3-5% of net winnings on the market is applied at the time of settlement, according to your commission rate. If house prices or interest rates move substantially from August 2007 levels (UK £200k, London £320k, MPC Rate 5.75%) then Spreadfair may review commission charging. Spreadfair will use its reasonable endeavours to notify you promptly of any changes to commission rates.

When commission points are revised:

Commission rates are updated every 14 days (every other Monday). To work out your new commission rate, we deduct 20% (this is called the Decay Rate) of the number of commission points that you had on the last update and then add all commission points earned over the past two weeks.