Brokerage firm Interactive Brokers (IBKR) has launched a platform for trading event outcome contracts. This platform combines offerings from Kalshi, CME Group, and its own service, ForecastEx.
The new tool is available to both retail and institutional clients. Users can trade contracts related to the economy, climate, and political elections. The company does not plan to add contracts related to sports or pop culture at this time.
The app interface allows users to compare prices across different platforms and select the most advantageous options, taking commissions into account.
“Prediction markets are changing how investors approach risk and uncertainty. We have combined the advantages of competing platforms with the familiar infrastructure our clients are used to. We will soon add other major exchanges,” said Milan Galik, CEO of Interactive Brokers.
Kalshi co-founder and CEO Tarek Mansour described IBKR as the “gold standard” in the brokerage industry. He noted that institutional adoption of prediction markets is just beginning.
CME Group CEO Terry Duffy highlighted the growing retail demand for such tools. Through the IBKR platform, CME clients will be able to trade contracts on key economic indicators.
The launch of this service comes amid rising popularity of prediction markets. Previously, Kalshi raised $1 billion at a valuation of $22 billion. Polymarket is in talks to raise $400 million, which would value the company at $15 billion if successful.
In April, analysts at Bernstein predicted that prediction markets could grow to $1 trillion.