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.

You may also like: Interactive Brokers Settles with FINRA over “4.2 Million Free-Riding Cases”

$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.