Thursday 27 December 2007

Arbitrage Services

Hello and merry christmas,

Today i would like to express my opinion about the several Abritrage services which are available on the internet. A friend of this column asked my opinion about an Arbitrage service and driven by his e-mail, i will express my opinion.

My opinion is that i find it rather difficult for someone to make money through arbitrage betting. Yes, if you search over the net, you can find arbitrage opportunities but there are several drawbacks which the services don't mention.

The first is that you must have accounts in many betting companies and you cannot trust most of them. There aren't many trustworthy bookmakers which you can use for arbitrage purposes. If you want to follow an arbitrage service, you must have accounts on some exotic bookmakers.

Another drawback is the return. Ok, how much are you going on to earn average through arbitrage per bet ? Most bets give you 2% - 8% .Is that enough ? How are you going to finance the bet? Through moneybookers? There are limits on the amounts you can trasfer per month. Through Credit Card ? If the bookie doesn't charge you anything , the bank will.

It goes without saying, that you must bet big amounts in order to make money. This bring us to the next drawback, the bet-limit. What are the limits on the bookmakers? Are you going to have the same limits on every bookmaker? Many bookmakers have the tendeny to reduce limits if they track an unsual activity. Therefore are you sure you are going to take full advantage of an arbitrage service ?

If you think that you can overcome these obstacles, then how are you going to deal with the fact that arbitrage opportunities are fading very quickly ? You see, many services have more than two - three clients and many punters receive their notification at the same time. Who is going to take advantage of the opportunity first ? It goes without saying that you have to be online all the time, waiting for the notification.

When the bookmaker sees that bigs bets are being made on a certain selection, it will automatically reduce the odds. Furthermore, the first people who will take advantage of the arbitrage opportunity are the owners of the arbitrage services themselves!


As you can see, i gave you some reasons NOT to follow any arbitrage service. The default risk (to use an economical term) is greater than the alleged return.

I am sure you can find other reasons yourself.

Also stay away from companies which they offer you the option of investing your money and giving you a "guaranteed" profit for return using arbitrage methods. We are either talking about fraud services or money laundering. Most of them are just frauds, they give you the guaranteed return for a short period and they disappear with your money when you increase your investment.

2 comments:

Anonymous said...

Excellent blog!

Anonymous said...

Excellent points!