The US-based
arm of Interactive Brokers (NASDAQ: IBKR) has
rolled out two significant updates for its clients, introducing expanded access
to election forecast trading and enhancing protection for uninvested cash
balances in brokerage accounts.
Interactive Brokers Lets
Clients Bet on Elections
The
broker’s ForecastTrader platform now enables US clients to take positions on
more than 100 primary election races across 22 states. Through the use of
“Forecast Contracts,” investors can trade yes-or-no predictions on a range of
political, economic, financial, and climate events.
These event
contracts are structured so that a correct prediction pays out $1, while an
incorrect one pays nothing. Prices for each contract fluctuate based on market
sentiment and have been available through the broker since October 2024, when
they were introduced ahead of the presidential election. More recently, IBKR
has expanded the offering of these instruments to
include Canada.
“Whether
you are hedging against political risk or acting on election insights, Forecast
Contracts offer a simple, transparent way to express your views around the
clock, six days a week,” the company commented in the press release.
For
example, the platform currently allows clients to predict outcomes like the New
York City Democratic Primary for mayor in 2025. All trades are executed via the
IBKR ForecastTrader web platform or through the broker’s desktop and mobile
applications.
Event-based
contracts have gained significant popularity recently, expanding the product
lineup not only at Interactive Brokers but also at retail giant Robinhood.
However, they
closely resemble binary options, and some commentators argue they are no
different from gambling.
$10M Cash Insurance
In addition
to the new trading opportunities, Interactive Brokers is offering an incentive
for Forecast Contract traders, including a 3.83% APY interest-like coupon on
the daily value of their contracts and a $3 bonus for those who begin trading
these products.
On the cash
management front, Interactive Brokers has increased the level of protection for
uninvested cash held in brokerage accounts. As of May 27, 2025, the firm’s
Insured Bank Deposit Sweep Program provides up to $5 million in
Federal Deposit Insurance Corporation (FDIC) coverage for individual and
institutional accounts, and up to $10 million for joint accounts.
When
combined with existing Securities Investor Protection Corporation (SIPC)
coverage of $250,000, this brings the total available insurance to $5.25
million for individual accounts and $10.25 million for joint accounts.
“Adding
this program will not disrupt your account features or your trading
capabilities,” IBKR commented. “You will continue to earn competitive interest
on balances, and your account cash will remain available for stocks, options,
futures, currencies and bond trading on more than 160 markets globally.”
The sweep
program works by automatically depositing excess cash into interest-bearing
accounts at multiple FDIC-insured banks. This approach is designed to maximize
insurance coverage without disrupting account features or trading capabilities.
Clients continue to earn competitive interest on their balances, and funds
remain readily available for trading across more than 160 global markets.
The US-based
arm of Interactive Brokers (NASDAQ: IBKR) has
rolled out two significant updates for its clients, introducing expanded access
to election forecast trading and enhancing protection for uninvested cash
balances in brokerage accounts.
Interactive Brokers Lets
Clients Bet on Elections
The
broker’s ForecastTrader platform now enables US clients to take positions on
more than 100 primary election races across 22 states. Through the use of
“Forecast Contracts,” investors can trade yes-or-no predictions on a range of
political, economic, financial, and climate events.
These event
contracts are structured so that a correct prediction pays out $1, while an
incorrect one pays nothing. Prices for each contract fluctuate based on market
sentiment and have been available through the broker since October 2024, when
they were introduced ahead of the presidential election. More recently, IBKR
has expanded the offering of these instruments to
include Canada.
“Whether
you are hedging against political risk or acting on election insights, Forecast
Contracts offer a simple, transparent way to express your views around the
clock, six days a week,” the company commented in the press release.
For
example, the platform currently allows clients to predict outcomes like the New
York City Democratic Primary for mayor in 2025. All trades are executed via the
IBKR ForecastTrader web platform or through the broker’s desktop and mobile
applications.
Event-based
contracts have gained significant popularity recently, expanding the product
lineup not only at Interactive Brokers but also at retail giant Robinhood.
However, they
closely resemble binary options, and some commentators argue they are no
different from gambling.
$10M Cash Insurance
In addition
to the new trading opportunities, Interactive Brokers is offering an incentive
for Forecast Contract traders, including a 3.83% APY interest-like coupon on
the daily value of their contracts and a $3 bonus for those who begin trading
these products.
On the cash
management front, Interactive Brokers has increased the level of protection for
uninvested cash held in brokerage accounts. As of May 27, 2025, the firm’s
Insured Bank Deposit Sweep Program provides up to $5 million in
Federal Deposit Insurance Corporation (FDIC) coverage for individual and
institutional accounts, and up to $10 million for joint accounts.
When
combined with existing Securities Investor Protection Corporation (SIPC)
coverage of $250,000, this brings the total available insurance to $5.25
million for individual accounts and $10.25 million for joint accounts.
“Adding
this program will not disrupt your account features or your trading
capabilities,” IBKR commented. “You will continue to earn competitive interest
on balances, and your account cash will remain available for stocks, options,
futures, currencies and bond trading on more than 160 markets globally.”
The sweep
program works by automatically depositing excess cash into interest-bearing
accounts at multiple FDIC-insured banks. This approach is designed to maximize
insurance coverage without disrupting account features or trading capabilities.
Clients continue to earn competitive interest on their balances, and funds
remain readily available for trading across more than 160 global markets.
This post is originally published on FINANCEMAGNATES.
