# The best prediction markets in the UK (2026): licensed betting exchanges

> Smarkets is the best betting exchange in the UK in 2026: it publishes every charge, 2% commission on net winnings and no payment fees, processes withdrawals within 6 hours and has no regulatory action on the Gambling Commission's register. Betfair Exchange has the most users and markets, and Matchbook Predictions, with yes/no markets priced as percentages, works most like Polymarket. All three are licensed by the Gambling Commission.

- URL: https://safebet.ai/uk/prediction-markets/
- Markdown version: https://safebet.ai/uk/prediction-markets/index.html.md
- Last updated: 2026-10-22 (re-checked when an operator changes its terms or a regulator or court acts)
- Author: SafeBet.ai Research Team (SafeBet.ai)
- How we rank: facts from regulators' registers, official texts and the operators' own pages (see Sources); scores are SafeBet.ai's editorial ratings — https://safebet.ai/uk/prediction-markets/how-we-rank/index.html.md
- Notice: Advertising. SafeBet.ai may be paid by the operators shown when you register through our links. We only link to operators licensed by the Gambling Commission. 18+ only. Free, confidential help: the National Gambling Helpline on 0808 8020 133, or block yourself from every licensed site with GAMSTOP.
- Editorial policy and advertiser disclosure: https://safebet.ai/editorial-policy/

In Great Britain, the legal way to trade on events, from football to elections, is a betting exchange or bookmaker licensed by the Gambling Commission; Polymarket and Kalshi block UK users. We ranked three licensed exchanges, Smarkets, Betfair Exchange and Matchbook, on licensing, markets, commission, liquidity, payments and apps, as of October 22, 2026. We don't list bonuses.

## Our top 3 (October 2026)

1. **[Smarkets](https://safebet.ai/uk/prediction-markets/smarkets-review/)** — Best overall (8.7/10): The self-styled original 2% commission exchange: 2% of net winnings per market, no payment fees, withdrawals processed within 6 hours, and politics markets branded Smarkets Predictions.
2. **[Betfair Exchange](https://safebet.ai/uk/prediction-markets/betfair-exchange-review/)** — Biggest exchange (8.6/10): The UK's most-rated exchange app, with markets from Premier League football and racing's biggest festivals to election results, MatchMe, and a 2% Basic package in Betfair's own example, but an Expert Fee for its most profitable customers.
3. **[Matchbook](https://safebet.ai/uk/prediction-markets/matchbook-review/)** — Prediction-style markets (7.6/10): A betting exchange with bet builders, multiples and live racing streams, plus Matchbook Predictions: yes/no markets on sports and politics, run with ADI Predict Street, from the operator that bought the Betdaq brand.

## Comparison

| # | Betting exchange | Score | Gambling Commission licence | Commission | Markets | Politics markets | Deposits | Apps |
|---|---|---|---|---|---|---|---|---|
| 1 | [Smarkets](https://safebet.ai/uk/prediction-markets/smarkets-review/) | 8.7/10 | Smarkets (Malta) Limited, account 39173 | 2% of net winnings per market (Standard tier) | Sports, politics, current affairs & TV; trade out; API (£150 setup) | Yes, branded Smarkets Predictions | Open banking, debit card, Apple Pay, Google Pay, Trustly, PayPal; no fees | iOS 4.8 · Android 2.8 |
| 2 | [Betfair Exchange](https://safebet.ai/uk/prediction-markets/betfair-exchange-review/) | 8.6/10 | TSE Malta LP, account 39561 | 2% on the Basic package (Betfair's example); Expert Fee for big winners | Football, racing, tennis, cricket, golf, rugby & more; MatchMe; API (£499 live key) | Yes, politics and election results | Not checked (site blocked outside the UK) | iOS 4.7 · Android 4.3 |
| 3 | [Matchbook](https://safebet.ai/uk/prediction-markets/matchbook-review/) | 7.6/10 | Triplebet Limited, account 39504 | Not checked; "low commissions", says its app listing | Football, racing, darts, boxing & more; bet builder; racing streams; API free to start | Yes, in Matchbook Predictions (per its app listing) | Not checked (site blocked outside the UK) | iOS 4.7 · Android 4.4 |

## 1. Smarkets — Best overall

Score: 8.7/10 · [Full review](https://safebet.ai/uk/prediction-markets/smarkets-review/) · [Alternatives](https://safebet.ai/uk/prediction-markets/smarkets-alternatives/)

Smarkets is run by Smarkets (Malta) Limited, licensed by the Gambling Commission as a betting exchange since November 2014, with no regulatory action on the register since it began in November 2023. It charges 2% commission on your net winnings per market; only very active traders (a 1% Pro tier) and its most profitable customers (a 3% Select tier) pay other rates. Deposits and withdrawals are free, from £10 by open banking, debit card, Apple Pay, Google Pay or Trustly, or £25 by PayPal, and withdrawals are processed within 6 hours. Its politics markets are branded Smarkets Predictions. The iOS app is rated 4.77; the Android app only 2.8.

**Pros:** 2% commission on net winnings, with every tier published, and no fees on deposits or withdrawals; Withdrawals processed within 6 hours, and paid straight away by open banking; Politics and current affairs markets, branded Smarkets Predictions; No regulatory action on the Gambling Commission's register; iOS app rated 4.77, with live charts and the order book.

**Cons:** A smaller user base than Betfair's (4,634 iOS ratings against 30,330), so quieter markets can be thin; Android app rated 2.8 from 1,369 ratings; Live chat only from 9 a.m. to 11 p.m. GMT, for logged-in customers; Very active and very profitable traders pay commission on every settled bet, including losing ones: 1% on the Pro tier, 3% on the Select tier.

## 2. Betfair Exchange — Biggest exchange

Score: 8.6/10 · [Full review](https://safebet.ai/uk/prediction-markets/betfair-exchange-review/) · [Alternatives](https://safebet.ai/uk/prediction-markets/betfair-exchange-alternatives/)

Betfair Exchange is run by TSE Malta LP, licensed by the Gambling Commission as a betting exchange since November 2014. It's the biggest exchange in the UK by app ratings, 4.72 from 30,330 on iOS, and covers Premier League and international football, racing's biggest festivals, tennis, cricket, golf, rugby and election results, with back and lay bets, your own odds and MatchMe. Your commission depends on your My Betfair Rewards package; Betfair's example gives 2% for the Basic package. Accounts with more than £25,000 of gross profit over 52 active weeks can pay an Expert Fee. In December 2025 its licensee was part of a £2 million settlement over customer-interaction failings.

**Pros:** The most-rated exchange app in the UK: 4.72 from 30,330 ratings on iOS; Markets from Premier League football and racing's biggest festivals to election results; MatchMe helps get bets matched when the odds move slightly during a match or race; Betfair says the vast majority of its exchange customers pay nothing but commission on net winnings; A free delayed API key for developers.

**Cons:** An Expert Fee of 20% or 40% of gross profit for accounts above £25,000 of gross profit over 52 active weeks; Part of a £2 million settlement over customer-interaction failings in December 2025; Its public charges page gives only the Basic package's 2%, as an example; other packages' rates aren't listed there; We couldn't check payments, limits or support hours: its sites were blocked to us outside the UK; A live API key costs £499.

## 3. Matchbook — Prediction-style markets

Score: 7.6/10 · [Full review](https://safebet.ai/uk/prediction-markets/matchbook-review/) · [Alternatives](https://safebet.ai/uk/prediction-markets/matchbook-alternatives/)

Matchbook is run by Triplebet Limited, registered in Alderney and licensed by the Gambling Commission as a betting exchange since November 2014, with no regulatory action on the register since it began in November 2023. Its exchange offers back and lay bets, bet builders, multiples, in-play betting and, according to its app listing, live streams of every horse race and greyhound race. Matchbook Predictions, run with ADI Predict Street, adds yes/no markets priced as percentages, from football to general elections. In October 2026 Triplebet agreed to buy the Betdaq brand. Its commission rates, payment methods and support hours weren't readable from outside the UK.

**Pros:** Matchbook Predictions: yes/no markets on sports and politics, priced as percentages; No regulatory action on the Gambling Commission's register; Bet builders, multiples and live streams of every horse race and greyhound race; Free API access with your usual login, within standard limits; Exchange app rated 4.75 on iOS and 4.4 on Google Play.

**Cons:** We couldn't check its commission rates: its site was blocked to us outside the UK; We couldn't check payment methods, withdrawal times or support hours either; The smallest of our three exchanges by app ratings: 1,616 on iOS, against 30,330 for Betfair Exchange; Matchbook Predictions is new: its iOS app, released in July 2026, had no ratings yet.

## Best for…

- **Best overall:** Smarkets — 2% commission with every tier published, free payments, withdrawals processed within 6 hours, politics markets and no regulatory action on the register.
- **The biggest exchange:** Betfair Exchange — The most-rated exchange app in the UK, 4.72 from 30,330 ratings, with markets from the Premier League to the Grand National and election results.
- **Yes/no prediction markets:** Matchbook — Matchbook Predictions prices sports and political outcomes as percentages: you just pick yes or no.
- **Trading by API:** Matchbook — Any customer can use its API with their usual login; above the standard limits it costs £100 per million data requests a month, where Smarkets charges £150 to set up and Betfair £499 for a live key.

## How we rank

- **Licensing & safety (25%):** Does it hold a Gambling Commission licence for a betting exchange, with its address on the public register, and how clean is its record?
- **Markets & features (20%):** How many sports, politics and other markets can you trade, and how good are in-play trading, cash out and API access?
- **Commission & fees (20%):** What commission does it take on winnings, are there extra charges for frequent winners, and what do deposits and withdrawals cost?
- **Liquidity (15%):** How much money is matched on its markets, so that you can back or lay at fair prices without moving them?
- **Deposits & withdrawals (10%):** Which payment methods work, what are the minimums, and how fast does it say withdrawals are paid?
- **App & experience (10%):** How do UK users rate its apps, and how easy is it to get help?

## How betting exchanges work

On a betting exchange you bet against other people, not a bookmaker. You can **back** an outcome, betting that it happens, or **lay** it, betting that it doesn't, by taking the other side of someone else's back bet. Users set the odds, the exchange takes no side, and instead of building a margin into its prices it charges a **commission** on your net winnings in each market; you pay nothing on a market where you make a net loss.

Laying means you can lose more than you stand to win. Lay £10 at odds of 5.0 and you win £10, less commission, if the outcome doesn't happen, but lose £40 if it does: that £40 is your **liability**.

Prediction markets such as Polymarket work the same way, with yes/no contracts priced as probabilities: a price of 60¢ is odds of about 1.67. Some UK exchanges now present their markets like that. Smarkets brands its politics page Smarkets Predictions, and Matchbook Predictions prices every outcome as a percentage. The Gambling Commission licenses exchanges as betting intermediaries, and nine companies held that licence on its register of October 22, 2026.

## How the three compare

| Exchange | Operator (account) | Commission | £100 at 3.0 (2/1) returns | Withdrawals | Regulatory record | Apps |
|---|---|---|---|---|---|---|
| Smarkets | Smarkets (Malta) Limited (39173) | 2% of net winnings | £296 | Processed within 6 hours; free | No action since Nov 2023 | iOS 4.8 · Android 2.8 |
| Betfair Exchange | TSE Malta LP (39561) | By package; 2% on Basic in Betfair's example | £296 on the Basic package | Not checked | £2m settlement, Dec 2025 | iOS 4.7 · Android 4.3 |
| Matchbook | Triplebet Limited (39504) | Not checked | — | Not checked | No action since Nov 2023 | iOS 4.7 · Android 4.4 |

All three have held their exchange licence since November 1, 2014. Betdaq, a fourth exchange, closed on October 21, 2026, after Matchbook's operator agreed to buy its brand, so we don't rank it.

## How we scored them

| Criterion | Weight | What we check |
|---|---|---|
| Licensing & safety | 25% | The Gambling Commission licence, the addresses on its register, and the Commission's fines and settlements |
| Markets & features | 20% | Sports, politics and other markets, in-play trading, trade out, bet builders, streaming and API access |
| Commission & fees | 20% | The commission on net winnings, extra charges for very active or profitable customers, and payment and API fees |
| Liquidity | 15% | How many people use the exchange, so your bets get matched at fair prices |
| Deposits & withdrawals | 10% | Methods, limits, fees and published withdrawal times |
| App & experience | 10% | How UK users rate the iOS and Android apps, and how easy it is to get help |

We couldn't get matched-volume figures that compare the exchanges, so we judge liquidity by the size of each exchange's user base, using app ratings as a guide. Betfair's and Matchbook's sites were blocked to us from outside the UK, so we used their app listings, developer pages and Internet Archive copies, and scored what we couldn't check conservatively. We haven't yet reviewed the five other companies with an exchange licence, and we don't list or score bonuses. The full method is in [how we rank betting exchanges in the UK](https://safebet.ai/uk/prediction-markets/how-we-rank/).

## What it costs

On an exchange, the commission is the price. At 2%, a winning £100 back bet at 3.0 makes £196 instead of £200, which works like odds of 2.96. So an exchange price only beats a bookmaker's if it's still higher after commission: backing £100 at 2.10 on an exchange charging 2% wins £107.80, £2.80 more than a bookmaker's 2.05, but you'd need more than 2.07 just to match it.

Very active and very profitable customers pay differently. At Smarkets, traders placing more than 1,500 bets or staking more than £1m a month must opt in to a 1% tier, and customers above £25,000 of net profit over 12 months pay a 3% tier, both charged on every settled bet. Betfair's Expert Fee tops up the fees of accounts with more than £25,000 of gross profit over 52 active weeks to 20% of their gross profit, or 40% above £100,000. Our [commission calculator](https://safebet.ai/uk/prediction-markets/commission-calculator/) works out any back or lay bet and compares it with a bookmaker's odds.

## Polymarket, Kalshi and other prediction markets

- **Polymarket** lists the United Kingdom among the places where users can close existing positions but can't open new ones, and holds no Gambling Commission licence. See [is Polymarket legal in the UK?](https://safebet.ai/uk/guides/is-polymarket-legal-in-the-uk/)
- **Kalshi** lists the United Kingdom among the restricted jurisdictions from which its members may not trade.
- **IG**: the register shows a pending application for a general betting licence from IG View Limited, with "ig prediction markets" among its trading names.
- **Event contracts sold as financial products** fall under the Financial Conduct Authority's ban on selling binary options to retail customers, in force since April 2, 2019.

Our guide to [whether prediction markets are legal in the UK](https://safebet.ai/uk/guides/are-prediction-markets-legal-in-the-uk/) explains the rules.

## Staying safe

- **Check the register.** Only operators licensed by the Gambling Commission may take bets from people in Great Britain, at the addresses on its register. Our [licence check](https://safebet.ai/uk/sports-betting/licence-check/) searches it, exchanges included.
- **Know your liability.** When you lay, you can lose several times what you stand to win: laying at 5.0 risks £4 for every £1.
- **Never bet on inside information.** It can be cheating under section 42 of the Gambling Act, and people accused of betting on the date of the 2024 general election with inside knowledge are being prosecuted.
- **Stay with licensed sites.** Unlicensed platforms aren't part of GAMSTOP, and if one won't pay, there's no British regulator to complain to.

## Taxes

Bettors pay no tax on winnings in the UK, exchange winnings included: HMRC's position is that betting and gambling "do not constitute trading". See [gambling taxes in the UK](https://safebet.ai/uk/guides/gambling-taxes-uk/).

## Betting responsibly

On an exchange, every winning market pays commission, so bettors as a whole lose over time. Set a deposit limit before your first bet, never chase losses, and stop when it isn't fun. The National Gambling Helpline on 0808 8020 133 is free, confidential and open 24/7, and GAMSTOP blocks you from every licensed site at once; our [guide to gambling help in the UK](https://safebet.ai/uk/guides/gambling-help-uk/) explains both.

## Frequently asked questions

### What is the best prediction market in the UK?

Legally, a betting exchange licensed by the Gambling Commission. [Smarkets](https://safebet.ai/uk/prediction-markets/smarkets-review/) is our pick for most people, for its published 2% commission, free payments and clean record; [Betfair Exchange](https://safebet.ai/uk/prediction-markets/betfair-exchange-review/) has the most users, and [Matchbook](https://safebet.ai/uk/prediction-markets/matchbook-review/) the most prediction-market-like product.

### Is Polymarket legal in the UK?

No. Polymarket holds no Gambling Commission licence, and it lists the United Kingdom among the places where users can close existing positions but can't open new ones. See [is Polymarket legal in the UK?](https://safebet.ai/uk/guides/is-polymarket-legal-in-the-uk/)

### Can I use Kalshi in the UK?

No. Kalshi's member agreement lists the United Kingdom among the restricted jurisdictions from which members may not trade, and Kalshi isn't on the Gambling Commission's register. See [are prediction markets legal in the UK?](https://safebet.ai/uk/guides/are-prediction-markets-legal-in-the-uk/)

### What is a betting exchange?

A platform where you bet against other people instead of a bookmaker: you back an outcome to happen or lay it not to happen, at odds set by users, and the exchange takes a commission on your net winnings. The Gambling Commission licenses exchanges as betting intermediaries.

### How much commission do UK exchanges charge?

Smarkets charges 2% of net winnings per market on its Standard tier. Betfair's rate depends on your My Betfair Rewards package; its charges page gives 2% for the Basic package as an example. We couldn't read Matchbook's rates from outside the UK. You pay nothing on a market where you make a net loss. Our [commission calculator](https://safebet.ai/uk/prediction-markets/commission-calculator/) works out any bet.

### Is betting on elections legal in the UK?

Yes, with a licensed bookmaker or betting exchange, if you're 18 or over. Betting with inside information is another matter: it can be cheating under section 42 of the Gambling Act, and on September 10, 2026 two more defendants pleaded guilty to cheating over bets on the date of the 2024 general election.

### What happened to Betdaq?

Betdaq closed on October 21, 2026, after Triplebet Limited, which runs Matchbook, agreed to buy the Betdaq brand name and domains. Customer accounts didn't transfer: Betdaq customers can log in to withdraw their balance until November 4, 2026. See our [Matchbook review](https://safebet.ai/uk/prediction-markets/matchbook-review/).

### Do you pay tax on exchange winnings in the UK?

No. HMRC's position is that betting and gambling aren't a trade for the bettor, so winnings from bookmakers and exchanges aren't taxed. See [gambling taxes in the UK](https://safebet.ai/uk/guides/gambling-taxes-uk/).

### How do you rank betting exchanges in the UK?

We score each exchange from 0 to 10 on licensing and safety (25%), markets and features (20%), commission and fees (20%), liquidity (15%), deposits and withdrawals (10%) and app and experience (10%), and the ranking follows the overall scores. Only exchanges licensed by the Gambling Commission are eligible. See [how we rank betting exchanges in the UK](https://safebet.ai/uk/prediction-markets/how-we-rank/).

## Guides

- [How we rank betting exchanges and prediction markets in the UK](https://safebet.ai/uk/prediction-markets/how-we-rank/): We only rank betting exchanges licensed by the Gambling Commission, the legal way to trade on events against other people in Great Britain; Polymarket and Kalshi, which block UK users, are never ranked. Each exchange is scored from 0 to 10 on six weighted criteria, licensing and safety, markets and features, commission and fees, liquidity, deposits and withdrawals, and app and experience, and the ranking follows the overall scores. We don't list or score bonuses.

## Sources

1. [Download the register of gambling businesses](https://www.gamblingcommission.gov.uk/public-register/businesses/download) — Gambling Commission, files of 2026-10-22
2. [Remote betting intermediary operating licence](https://www.gamblingcommission.gov.uk/licensees-and-businesses/licences-and-fees/remote-betting-intermediary-operating-licence) — Gambling Commission, updated 2026-10-01
3. [Regulatory actions register](https://www.gamblingcommission.gov.uk/public-register/regulatory-actions/full) — Gambling Commission, accessed 2026-10-22
4. [Smarkets commission FAQ](https://help.smarkets.com/hc/en-gb/articles/212654665-Smarkets-commission-FAQ) — Smarkets, updated 2025-02-17
5. [Betfair charges](https://web.archive.org/web/20251011010622/https://www.betfair.com/aboutUs/Betfair.Charges/) — Betfair, Internet Archive capture of 2025-10-11
6. [Expert Fee FAQs](https://web.archive.org/web/20260111205811/https://support.betfair.com/app/answers/detail/expert-fee-faqs) — Betfair, Internet Archive capture of 2026-01-11
7. [Betdaq Closure](https://betdaq.zendesk.com/hc/en-gb/articles/31029441978652-Betdaq-Closure) — Betdaq, 2026-10-14
8. [Geographic restrictions](https://docs.polymarket.com/api-reference/geoblock) — Polymarket, accessed 2026-10-22
9. [Kalshi Member Agreement (Restricted Jurisdictions)](https://web.archive.org/web/20260222050154/https://kalshi.com/docs/kalshi-member-agreement.pdf) — KalshiEX LLC, Internet Archive capture of 2026-02-22
10. [Public register: IG View Limited](https://www.gamblingcommission.gov.uk/public-register/business/detail/102436) — Gambling Commission, accessed 2026-10-22
11. [PS19/11: Product intervention measures for retail binary options](https://www.fca.org.uk/publications/policy-statements/ps19-11-product-intervention-measures-retail-binary-options) — Financial Conduct Authority, 2019-03-29
12. [Two more admit General Election betting offences](https://www.gamblingcommission.gov.uk/news/article/two-more-admit-general-election-betting-offences) — Gambling Commission, 2026-09-10
13. [Gambling Act 2005, section 42 (cheating)](https://www.legislation.gov.uk/ukpga/2005/19/section/42) — legislation.gov.uk, up to date to 2026-10-22
14. [Business Income Manual BIM22015: betting and gambling](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22015) — HM Revenue & Customs, updated 2026-08-04