Interactive Brokers expands forecast contracts to European market

Interactive Brokers expands forecast contracts to European market

Interactive Brokers (IBKR), a leading automated global electronic broker, has announced the expansion of its Forecast Contracts into the European market. This move comes as investor demand for predictive risk management tools continues to grow, driven by the need for precision and simplicity in managing event-driven risks.

Forecast Contracts allow investors to take positions on clearly defined outcomes related to financial, economic, and climate indicators. Each contract is based on a simple yes-or-no question. For instance, an investor who believes the US Federal Reserve will raise the Fed Funds Target Rate above 3.875% at the FOMC meeting ending July 30, 2025, can purchase a "yes" contract. If the prediction is correct, the contract settles at USD 1.00; otherwise, it settles at zero. Prices range from USD 0.02 to USD 0.99, reflecting the market’s perceived probability of the outcome [1].

"Investors worldwide are increasingly seeking tools that help them manage event-driven risks with precision and simplicity," said Milan Galik, Chief Executive Officer at Interactive Brokers. "By extending access to Forecast Contracts in Europe, we’re giving investors more ways to act on their views and manage risk through our comprehensive, global platform" [1].

Trading in Forecast Contracts is available nearly 24 hours a day, 6 days a week, through IBKR ForecastTrader, a dedicated web-based interface, or other Interactive Brokers platforms. Additionally, contracts pay an interest-like incentive coupon based on the market value of open positions. The current annualized rate is 3.83 percent APY, subject to change and terms apply [1].

Forecast Contracts are available to eligible clients of Interactive Brokers LLC, Interactive Brokers Ireland Limited, Interactive Brokers Canada Inc., and Interactive Brokers Hong Kong Limited. The product is listed by ForecastEx LLC, a wholly owned subsidiary of Interactive Brokers and a CFTC-regulated Designated Contract Market. Availability may vary by jurisdiction and client eligibility [1].

The expansion into Europe marks a significant step for Interactive Brokers, which has been consistently recognized as a top broker, offering a sophisticated platform for managing investment portfolios. The company’s four decades of focus on technology and automation have enabled it to provide clients with advantageous execution prices and trading, risk, and portfolio management tools, all at low or no cost [1].

For more information on Forecast Contracts and to view live prices, investors can visit IBKR ForecastTrader.

References:

[1] https://markets.ft.com/data/announce/detail?dockey=600-202507300400BIZWIRE_USPRX____20250730_BW718860-1
[2] https://www.stocktitan.net/news/IBKR/interactive-brokers-expands-forecast-contracts-to-european-rqch9ebtuakd.html
[3] https://www.marketscreener.com/news/interactive-brokers-expands-forecast-contracts-to-european-market-ce7c5fdfd98ef526