A way to dodge Betfair's premium charge?

[£3.65]

In the terms and conditions, Betfair states

"Any single win that constitutes more than 50% of your gross profits over the lifetime of your account will be excluded from the calculation".

What you can do is check your gross profits in one of the tabs, and place a bet that will win more than that amount. If it wins, it will satisfy the condition of it being more than 50% of your gross profits and so excluded. If it loses, then you could lose a great deal, possibly going negative on the account, and it will take some time before you can build up enough to be eligible to pay the charge again. If it wins, you repeat the above until you lose.

As far as I can see, this method is going to work along the lines as I've stated. Of course, you may want to hedge the bet by taking the opposite side with another bookie/exchange. Also, it's an option matter your situation, because you can, at least in principle, find a bet that will win more than your gross profits.

[Optional]

Assuming you have enough money available at both Betfair and another book to play an arb large enough to do that it does sound like a good way to manage the premium charge.

[Hareeba!]

A better way is to find a high volume, low margin strategy.
I place a ton of horseracing bets which return a very minimal profit/loss, virtually break-even.
That ensures a) maintenance of a decent commission discount and b) high commission/profit multiple which falls below the PC level.

[Foxx]

As long as you are a position taker, the 20% PC is fairly easy to avoid as it usually does take much extra to put you over the 20%. If you are a courtsider or a trader always trying to green out, it's a little more difficult as your commission to profit ratio will be very low. It's still doable fairly easy.

The ultra 40% to 60% Premium Charge is another story though.