Growth in prediction markets driven by election betting highlights new revenue streams for brokers and reflects rising investor interest in event-based contracts. (BizTrendWire Insight)
Source: Reuters (via feed)
NEW YORK, Jan 14 (Reuters) – Interactive Brokers expects higher growth for its prediction market business in 2026. Chairman Thomas Peterffy said the platform could benefit from U.S. midterm election betting.
Interactive Brokers launched its prediction markets business, called ForecastEx, in 2024. The platform lets investors trade contracts on political, economic, and environmental outcomes.
Peterffy said the company sees more interest as Americans prepare to bet on the midterm elections in November. He added that increased engagement could help expand its overall user base.
ForecastEx allows customers to buy “yes” or “no” outcome contracts. The platform has gained traction since betting on elections became legal in 2024.
The change followed a U.S. court decision in 2024 that removed a rule banning election betting. Prediction markets have since grown rapidly.
Peterffy also said Interactive Brokers plans to integrate ForecastEx more closely with its core trading services. He expects rivals to enter the market.
Interactive Brokers’ value stood at about $120 billion. The firm had roughly 4.13 million customer accounts at the end of September, up about 32% from a year earlier.
The company also expanded its cryptocurrency offerings, including a stablecoin for funding accounts.
