eToro has agreed to acquire U.S.-focused brokerage TradeZero in a deal worth up to $231 million as the trading platform looks to strengthen its presence in the American market.
The acquisition comes at a time when eToro is seeing a sharp slowdown in cryptocurrency trading activity. While the company continues to invest in digital assets and blockchain-based products, its users are increasingly shifting toward equities and other traditional markets.
TradeZero will bring an established active-trader customer base, U.S. brokerage infrastructure, and a range of trading tools to eToro.
The deal is expected to close during the first half of 2027, subject to regulatory approvals and customary closing conditions.
Summary
- eToro has agreed to acquire TradeZero for up to $231 million.
- TradeZero generated around $80 million in revenue during the 12 months ending June 30, 2026.
- The brokerage reported an 81% gross margin over the same period.
- eToro’s crypto revenue fell about 30% year over year in the second quarter.
- July crypto trades dropped 73% compared with a year earlier.
- The amount invested in cryptocurrency during July fell 50%.
- The TradeZero deal is expected to close in the first half of 2027.
eToro expands its U.S. business with TradeZero acquisition
The TradeZero acquisition is designed to strengthen eToro’s position in the United States, one of the markets where the company has been trying to expand more aggressively.
eToro first launched its U.S. platform in 2019, although Europe and the United Kingdom have historically remained more important parts of its business.
TradeZero could help eToro accelerate its U.S. strategy by bringing in additional brokerage technology, active traders, and specialized trading services.
Founded in 2015, TradeZero focuses heavily on frequent and professional-style traders.
Its platforms provide access to stocks and options, extended-hours trading, short-selling tools, market scanners, and other services aimed at active market participants.
eToro co-founder and CEO Yoni Assia described the acquisition as an important step in expanding the company’s U.S. operations.
He said combining eToro’s existing platform with TradeZero’s infrastructure could also help the company launch new products for American customers more quickly.
eToro to pay cash and shares for TradeZero
Under the proposed transaction, eToro will use a combination of cash and newly issued shares to acquire TradeZero.
The total consideration could reach $231 million, depending on customary purchase-price adjustments.
eToro may issue up to 2.5 million new Class A shares as part of the transaction.
The company expects the acquisition to increase its adjusted earnings per share during the first year following completion.
TradeZero generated approximately $80 million in revenue during the 12 months ended June 30, 2026.
The brokerage also reported an 81% gross margin, highlighting the relatively strong profitability of its business model.
Jefferies is acting as eToro’s exclusive financial adviser on the deal, while Simpson Thacher & Bartlett is serving as lead legal counsel.
J.P. Morgan Securities is advising TradeZero, with Choate, Hall & Stewart acting as its lead legal adviser.
eToro beats second-quarter earnings expectations
The acquisition announcement came alongside eToro’s second-quarter financial results.
The trading platform reported adjusted earnings of $0.68 per share, above the $0.61 expected by analysts surveyed by LSEG.
Net trading income from equities, commodities, and currencies increased 24% year over year to $141.6 million.
Equities were the main driver of that growth.
The figures suggest that some customers are becoming more active in traditional markets even as crypto trading weakens.
eToro also reported significant overlap between users trading different asset classes.
More than 60% of users who had traded commodities during the previous two quarters also traded equities during the second quarter.
Chief Financial Officer Meron Shani said that nearly nine out of ten users who shifted from commodities into equities had previously traded cryptocurrencies on eToro.
That shows many of the platform’s customers are not limited to one market and regularly move between crypto, equities, commodities, and other assets.
Crypto trading on eToro drops sharply
While eToro’s equities business performed well, crypto activity continued to weaken.
The company reported approximately $1.59 billion in total revenue during the second quarter, down from around $2 billion in the same period of 2025.
Crypto-related revenue fell to roughly $1.34 billion, compared with about $1.9 billion a year earlier.
That represents a decline of around 30%.
However, eToro’s crypto revenue figures require some context.
The company reports cryptoasset revenue on a gross basis, meaning the amount includes the value of cryptocurrencies purchased to complete customer transactions.
As a result, much of that revenue is offset by the cost of obtaining those crypto assets.
Crypto-related cost of revenue reached around $1.35 billion during the quarter.
Net income attributed specifically to crypto assets was much smaller at approximately $19.7 million.
By comparison, eToro’s overall net income reached $53.4 million.
July crypto trades fall 73% year over year
The slowdown became even more noticeable in July.
eToro recorded around 1.4 million cryptocurrency trades during the month.
That was approximately 73% lower than the same period a year earlier.
The amount of money invested in crypto also declined by around 50%.
The trend had already started earlier in the year.
In April, crypto trades were down around 32% year over year to approximately 2 million transactions.
The average amount invested in each crypto trade had also declined 22% to $207.
Crypto profits were weaker during the first quarter as well.
Crypto-related profit dropped to around $13 million, compared with approximately $46 million during the first quarter of 2025.
Despite the weakness in digital assets, eToro continued to grow in other areas.
The company reported around $17 billion in assets under administration at the end of March, up 15% year over year.
Funded accounts increased 12% to approximately 4.02 million.
By April, assets under administration had climbed further to roughly $18.7 billion.
eToro continues investing in crypto despite lower activity
The decline in trading has not caused eToro to step away from cryptocurrency.
Instead, the company continues to invest in digital asset products, custody infrastructure, and onchain technology.
On April 30, eToro completed its acquisition of Zengo, a self-custodial cryptocurrency wallet provider.
Zengo uses multi-party computation technology rather than relying on traditional crypto seed phrases.
eToro has said the acquisition will help connect its traditional financial services with blockchain-based infrastructure.
The company has also expanded its regulated crypto operations in the United States.
Earlier this year, eToro activated its New York BitLicense, allowing it to offer cryptocurrency trading to customers in the state.
Globally, eToro has expanded its crypto offering to more than 150 assets, while U.S. customers have access to more than 100 digital assets.
eToro backs decentralized derivatives platform Extended
eToro has also continued investing in decentralized finance infrastructure.
In July, the company led a $12.5 million strategic investment in decentralized perpetual futures platform Extended.
Jump Crypto also participated in the funding round.
Extended focuses on perpetual futures trading through self-custodial infrastructure.
The platform uses StarkWare’s StarkEx technology and opened trading to the wider public in late 2024.
The investment also included a partnership between Extended and Zengo.
The companies plan to explore ways of giving users access to financial markets through onchain trading infrastructure.
The move shows that eToro still sees long-term potential in blockchain-based financial services even as short-term crypto trading volumes fall.
eToro pushes tokenized stocks onto blockchain networks
eToro’s digital asset strategy also extends beyond cryptocurrencies.
The company has been working on bringing traditional financial products onto blockchain networks.
In July 2025, eToro announced plans to introduce tokenized versions of U.S.-listed stocks on Ethereum.
The company also planned to offer 24/5 trading for around 100 U.S. stocks and exchange-traded funds.
Under the proposed model, users would be able to move supported stock tokens onto Ethereum and later redeem them against underlying positions held through eToro.
The initiative aims to combine traditional securities with blockchain-based settlement and ownership infrastructure.
eToro has been exploring tokenization for several years.
In 2019, the company acquired Danish tokenization business Firmo.
It later introduced tokenized versions of assets such as gold, silver, and fiat currencies.
The company’s latest plans suggest tokenization remains an important part of its broader product strategy.
TradeZero could strengthen eToro beyond crypto
The TradeZero deal highlights how eToro is working to diversify its business as crypto activity weakens.
Rather than relying heavily on cryptocurrency trading, the company is expanding into active equities trading, options, tokenized securities, self-custody, and decentralized finance.
TradeZero could be particularly valuable because its customer base is focused on active trading rather than long-term investing.
Its extended-hours trading tools, short-selling features, and market scanners could complement eToro’s existing platform.
The acquisition may also help eToro compete more directly with other U.S. brokerages that offer advanced trading products.
At the same time, eToro continues to maintain exposure to the crypto industry through Zengo, tokenized stocks, regulated digital asset trading, and investments in decentralized platforms.
eToro balances traditional markets and blockchain growth
The latest results show that eToro’s business is becoming increasingly diversified.
Crypto trading remains an important part of the platform, but user activity has declined sharply compared with 2025.
Meanwhile, equities and other traditional markets are contributing more strongly to trading income.
The planned acquisition of TradeZero could accelerate that shift by giving eToro greater access to active U.S. traders and more advanced brokerage infrastructure.
At the same time, the company is not abandoning its blockchain strategy.
Its investments in self-custody, decentralized trading, tokenized stocks, and regulated crypto services suggest that eToro still expects digital assets to play an important role in its long-term growth.
For now, however, the TradeZero deal shows that expanding traditional brokerage services in the United States has become an increasingly important part of eToro’s strategy.
