If you are excited by what you have learned so far about sports-arbitrage, that's an excellent start. However, if you want to be assured of success in your project, you must make certain preparations before diving in:
Computer
Minimum Spec: 1Ghz Processor, 1GB RAM 80GB Hardrive, Windows XP
You can also use just about any modern Mac, although you will probably want to run helper software that allows you to use Windows programs on your Mac.
Internet connection
Broadband internet is essential - the faster the better. A back-up dial-up account will also be useful both for emergencies and those occasions where you may require a different IP Address
Software
ArbSurfer Preview
This is a free, fully working demo of a specialised internet browser which virtually automated the process of signing up for multiple bookmaker accounts. It saves hours of repetitive form-filling
Arbitrage Software
There are lots of companies selling sports arbitrage software & services which brings arbs to you for you to trade. You'll definitely need at least one but before deciding which, you should take up all the free trials so that you can make an informed decision. Click here for a list of free trials
Accounting Software
You'll be involved in a very large number of transactions so you should have a system in place to keep track of everything. Microsoft Money or Intuit Quicken can work well enough.
Communication
An email program (eg Windows Mail)
Skype (instant message & internet phone)*
* Coupled with a headset or mic & speakers Skype is a very convenient way to call bookmakers whilst keeping your hands free to place bets online.
Capital
The amount of trading capital you need really depends on your goals. Here are some rough guides to what is possible:
No matter what amount of capital you start with, if you use the bonus-scalping method to start with, you will easily add £1000 - £2500 to your capital at the very start of your project. Click here for more (link to bonus-scalping guide)
Bankroll: £1000 or less
You can start your project with this much money if you take full advantage of the sign-up bonuses on offer. By doing so, you will more than double your capital. This will take you to the next level of bankroll.
Bankroll: £2500 - £5000
You will be trading small stakes or using a very limited set of bookmakers. Your expected monthly profit is in the range £300-£400
Bankroll: £10,000 - £15,000
With a good service locating arbs for you, as long as you can commit about 2 hours to trading each day, you should be able to make monthly profits of around £1200-£1500. If you leave your profits to accumulate, your bankroll & profits will grow quite quickly
Bankroll: £25,000 and above
With this kind of money you will have the liquidity to trade far greater numbers of arbs and you should be looking at monthly profits equal to about 10% - 12% of your bankroll. This rule of thumb scales up to capital of about £200,000 - your stakes can't get much larger but you can be involved with far more arbs and far more bookmakers.
Obviously, with that kind of money to trade with, arbing is going to be your full-time occupation!
Banking
Although you can trade from many different places in the world it is easier and cost-effective if you are able to set up bank and credit card accounts in the UK. This is because all UK bookmakers and some non-UK bookmakers allow free deposits and withdrawal from UK debit cards (and some UK credit cards). If you are not based in the UK, you might want to consider opening a UK bank account the next time you are here and then do all of your trading in British Pounds. If this is not possible, don't worry too much - all it means is that you will face slightly higher transaction costs at the start of your business. As long as you trade frequently your profits will overshadow your costs considerably.
In any case, you should set up separate accounts (bank and credit card) for your trading form your personal day-to-day accounts. Mixing arbitrage transactions with shopping bills and mortgage payments will lead to complications and possible accounting errors once your trading takes off.
You will need a bank account which will give you easy online access. You want to be able to check your balances and make transfers conveniently and doing all of this online is the most convenient. Telephone-banking is a distant second and you should completely forget about trying to trade whilst using an account with no such facilities.
The best account to get is the one offered by Citibank because with it you get not only a Sterling-based current account but one denominated in Euros and one denominated in US Dollars. Transfers between the different accounts are instant and performed at very good rates of exchange.
If you cannot open an account with Citibank then try First Direct. They also offer US Dollar accounts although transfers between your Sterling and Dollar accounts will not be quite as smooth as with Citibank. However, they have exceptional customer service and very convenient online facilities.
Banks' requirements for opening accounts vary from time to time so you should check their websites for the latest terms. However, when you apply, don't mention that you intend to use the accounts to facilitate sports-arbitrage trading. It's usually best not to mention anything related to gambling when dealing with financial institutions!
Credit Cards
You will also require at least one credit card. For the purposes of trading, only Visa credit cards will do. Mastercard has taken a stance against gaming and you will not be able to use a Mastercard at most bookmakers.
The bank you use for your trading account will probably be able to offer you a credit card as well. Take them up on this with as high a credit limit as they will give you. It is useful to have at least one spare credit card but most traders have a collection of 3 or more. You may not use them often but it's better to have them available than to be left high and dry in the middle of a trading scenario.
Online Wallets
In addition to a bank account and credit card, you will require accounts with a number of online wallets. These are accounts into which you can place deposits and which will act as a 'central holding account' for a number of bookmakers. The largest and most widely-used online wallets are currently Neteller and Moneybookers and you should set up accounts with each of them.
Bookmakers
Before you can begin to trade, you will need to set up accounts with a large number of bookmakers. It is a very good idea to set up your accounts well before you start to trade – attempting to set up accounts as and when you need them will result in a lot of wasted time and opportunities for you later on.
A list of the most useful bookmakers, together with user-reviews, is provided here:
Bookmaker List
Setting up such a large number of accounts can be a daunting and time-consuming task; using the free ArbSurfer Preview to open your accounts is the most efficient method possible as the software auto-completes the majority of each form for you. Once you have downloaded and installed the software, you will be taken through a set-up wizard. Follow this through and set up a Profile. After this, you can use the links provided in the software to visit each bookmaker site's sign-up page and the software will automatically fill out the forms with the data you have provided in your Profile.
Distribution of Funds
As you set up your accounts, a question about how to spread your funds amongst them will come to mind. Do you keep the money in the bank and wait for an arb or do you put the money with the bookmakers in anticipation? This usually seems like a catch-22 situation to new traders. If you don't have your money ready at the bookmakers, then you waste too much time depositing and miss the prices when you need to bet. But if you start putting your money with the bookmakers, it gets spread thinly and you still may get an arb with a bookmaker where you don't have enough funds. . .
The solution is to combine the approaches intelligently and place funds with bookmakers selectively:
1. Select the bookmakers you will use. As mentioned previously, good starting points are www.bookmakerreviews.com and/or the built-in lists of ArbSurfer
2. Provide the bookmakers with all required documentation in advance. For example, in order to make your first deposit with an Australian bookmaker you will need to send them a fax or scan of your ID and credit card. If you do not do this in advance, the process will seriously hinder your ability to successfully place a bet with them on the first occasion that they are involved in a sports-arbitrage trade. Look through the sites you plan to use and see which ones need more information from you.
3. Some bookmakers provide Instant-Bet accounts which will debit your card automatically at the time you place a bet. Any accounts which offer Instant-Bet facilities can immediately be taken off your short-list of accounts which require advanced funding.
4. Look for bookmakers which will accept deposits via your online wallets. Deposits made this way are usually instant – this means that you can keep relatively large central balances in your online wallets ready to be used with any of the bookmakers rather than holding smaller individual balances at the bookmakers themselves.
After following these steps, you'll be left with 2 lists of bookmakers: those which require advanced funding and those which do not.
Now you're ready to make a very quick, easy and risk-free £2,500 during your first week as a sports arbitrage trader