Update (April 2017): BetOnFinance Ltd. was on Friday 21st April declared bankrupt by the Danish courts as Fibetco, the owner of BetOnFinance, had applied for a bankruptcy itself. The company sent a letter to its affiliates explaining that “too few players didn’t convince our investor to keep the ball on the court so we need to take out of the business.”
BetOnFinance is a betting platform, offering players the possibility to bet on financial markets. The basic idea behind the concept is to merge financial markets with betting, thus “making financial markets available for the man on the street.” There are three types of games: stock-race, index-game and company events. All games are offered for the Danish, Swedish and U.S. markets, plus Germany for the index game. The platform is accessible through smartphones, e-readers, and computers – and available in Danish, Swedish, and English.
Who are the people behind BetOnFinance?
The Founder and CEO of BetOnFinance is Jeff Saul, who has more than 30 years of experience in the financial industry. Saul worked as a stock analyst at several major banks in Scandinavia and the U.K. Just before he founded BetOnFinance, Saul had been the global head of equities at Saxo Bank, where he had had a central role in the development of the bank´s trading platform as well as in the acquisition of Euroinvestor.
The BetOnFinance board consists of several experienced individuals, including the managing director for Danske Spil, H.C. Madsen.
How does BetOnFinance work?
BetOnFinance is a pool-game, much like betting on horse-racing. That means that players bet against other players and not against the house. Hence, the odds tend to be very volatile in comparison to regular betting. As mentioned earlier, there are three different game types.
The stock-race is structured in a similar way to horse racing; one bets on which stock one thinks will end up in the top 3.
In addition, there is the bottom3 game, which works in the same manner as the top3 game, only that one bets on what stocks will end up amongst the bottom 3 in the selection of available stocks.
Finally, there is also the index game, where one bets on how different major indices, such as the American Nasdaq100, German DAX30, Danish C20 and the Swedish S30, will move within half a day of trading.
On top of these three standard game types, there are also special event games that are offered when there is a major event taking place in the stock market, or even in the political sphere. These could be games based on the outcomes of earnings reports, the movements on capital markets day, or results of an election such as the US presidential election or Brexit.
My personal experience with BetOnFinance
For a person without much experience in the stock markets, the site can feel a bit overwhelming at first glance. When I sat down though and spent a little time reading up on the games and on how floating odds work, I got the hang of it quickly. BetOnFinance also has several articles on different betting strategies and different features of the stock markets, that are very useful to read. These articles are called Betschool articles and can be found under the news section.
Speaking of news, BetOnFinance also supplies its users with daily updates on the Swedish, Danish and US stock markets, updates that work as starting points for traders to make educated bets.
To summarize, there is an initial learning curve, but when that phase is over, there are plenty of opportunities to win money at good odds, and I also feel more knowledgeable about the stock markets now.
What are the advantages?
The top advantage of BetOnFinance is that the games are completely unique and that you can’t find them on any other website. Furthermore, the winnings are all tax-free, in comparison to, for instance, binary options and regular stock market speculation. Players cannot lose more money than they put into the system, so the risks are limited.
Another benefit with BetOnFinance is that the minimum bet is as low as 1€, which makes it possible for everyone to bet, not only people with large bankrolls.
When compared to binary options, BetOnFinance also has relatively low transaction costs, 10%, as the industry average for binary options sites is 15%-25%.
Finally, you can also bet before the markets open, which means that you can make money on earnings announcements and other news, much more comfortably than at binary options sites.
How does BetOnFinance match up Binary Options and CFDs?
Mechanics-wise, the pool betting currently pushed by BetOnFinance is the same as the trading of US binary options. That makes it obvious that these games are actually superior to CySEC and EU-regulated binary options, because they are based on a fairer business model. CySEC binary option brokers, such as Banc De Binary and IQ Option, act as the sole market-makers of their operations, which means that they perform pricing the way they see fit. What this translates to is a “player vs house” setup, much like an online casino, which carries an obvious and blatant conflict of interest. The house will not stand to lose too much.
Some binary option brokers actually reserve the right to manipulate the prices as well as the profits of their traders, through their Terms and Conditions fine-print. This does not happen at BetOnFinance, where traders go up against other traders. This way, the platform provider is not a direct participant in the game and the above detailed conflict of interest does not exist.
It is true that the player is facing a cost of 10% on his/her bets, but the possibility for cheating and abuse is not there, and BetOnFinance’s betting pools are still way cheaper than most binary options (with the possible exception of US binaries).
Another major advantage of financial betting over “traditional binaries” is the lack of leverage. There is no leverage manipulation and there are no additional risks incurred on account of leverage. What one has is what one bets…and this does not come at the detriment of accessibility either, as the low limit on bets is a measly 1EUR.
One area where pool betting may not fare well against binary options and CFDs, is the expiry time selection. Binaries feature 30- and 60-second expiries, while with BetOnFinance, the shortest expiry is 2.5 hours. With this, comes another possible drawback: one of the main selling points of binary options is the fact that the odds and all the other variables involved in the equation are known before a trade is actually launched. With BetOnFinance, the actual odds and potential returns only surface when the pools are closed for further betting.
BetOnFinance’s website is a modern and responsive platform, completely coded in HTML5. Since it is coded in HTML5, there is no need for you to have an app on your phone, as the website works just as well on a phone as it does in desktop mode.
BetOnFinance offers various bonuses, which are changed up from time to time. The bonus system is a way for BetOnFinance to stimulate the players and to make the game even more exciting and economically beneficial. At the time of writing, BetOnFinance offers a bonus of 200 SEK to players who are right on whether the Stockholm stock exchange will go up or down, through a Facebook competition. This type of bonus is both a fun and simple concept, which makes it easy and economically advantageous for new users. BetOnFinance also offers a 100% welcome bonus – where the first deposit is doubled -and a 50% monthly reload bonus -where the first deposit every month is topped up by 50%.
The most obvious downside, as with all betting, is that losses are part of the equation. However, BetOnFinance has a very comprehensive responsible gaming policy. Accordingly, BetOnFinance offers all players to set up limits, which ensures that they stick to their budget limits. Additionally, BetOnFinance offers self-exclusion options, allowing players to exclude themselves from BetOnFinance, for a specific time-period.
The second downside relates to the current pool sizes. As BetOnFinance still is a relatively new betting company, the pool sizes are not optimal. However, the pools increase continuously and the pool sizes will most likely be seen as an advantage rather than a disadvantage in the near future.
BetOnFinance Review Conclusion
To conclude, BetOnFinance is the first betting company ever to offer betting on financial markets. The platform is easily accessible through PCs and smartphones, and the concept is easily understood, even for people who lack knowledge about financial markets. BetOnFinance offers index and single stock games on a permanent basis, while adding specific event games from time to time. Some of the main advantages are the small risks, high odds and exciting games, while the only major drawback concerns current pool sizes. BetOnFinance’s motto “make financial markets available to the man on the street” prevails through the entire platform, and makes the games exciting – for everyone.
Available in Sweden, Norway, Finland, Germany, Netherlands, Eastern Europe, South Africa, Australia, India, Poland, Czech Republic, and many other countries!
Currently, BetOnFinance is NOT available in the US, UK, France and Southern Europe.