eToro has agreed to acquire U.S.-focused brokerage TradeZero for up to $231 million as the trading platform pushes further into the American market while crypto activity among its users continues to fall. Summary eToro agreed to acquire U.S. brokerage TradeZero for up to $231 million as it expands its presence in the American trading market. TradeZero generated about $80 million in revenue with an 81% gross margin during the 12 months ended June 30, 2026. eToro reported $1.34 billion in crypto revenue for the second quarter, down about 30% from $1.9 billion a year earlier. Crypto trading activity continued to fall, with July trades dropping 73% year over year to 1.4 million and the amount invested falling 50%. The TradeZero acquisition is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions. eToro said Tuesday that the cash-and-stock transaction would add TradeZero’s active-trader customer base and brokerage infrastructure to its U.S. operations, with the acquisition expected to close in the first half of 2027 after regulatory approvals and other customary closing conditions are met. The company expects the purchase to increase adjusted earnings per share during the first year after completion. TradeZero generated about $80 million in revenue during the 12 months ended June 30, 2026, with an 81% gross margin, according to eToro. Founded in 2015, TradeZero serves active traders in the United States and also operates in Canada and international markets. Its platforms provide trading in stocks and options alongside extended-hours access, short-selling tools, market scanners and other services geared toward frequent traders. “Today’s announcement is an important step in building our US business,” eToro co-founder and CEO Yoni Assia said. He added that combining the companies would provide “a faster path to launching new products for US customers.” TradeZero deal adds to eToro’s U.S. expansion The acquisition would give eToro additional infrastructure in a market where the company has operated since launching its U.S. platform in 2019. Europe and the U.K. have historically accounted for much of eToro’s business, while the company has been expanding in the Americas and Asia-Pacific. Under the transaction terms, eToro would pay cash and issue up to 2.5 million new Class A shares, with total consideration reaching as much as $231 million after customary purchase-price adjustments. Jefferies is acting as eToro’s exclusive financial adviser, while Simpson Thacher & Bartlett is serving as its lead deal counsel. J.P. Morgan Securities is advising TradeZero, with Choate, Hall & Stewart serving as the brokerage’s lead counsel. The deal was announced alongside eToro’s second-quarter results, when adjusted earnings reached $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, led mainly by equities trading. Trading patterns among existing customers also changed during the quarter. More than 60% of users who had traded commodities during the previous two quarters went on to trade equities during the second quarter, according to the company. Chief Financial Officer Meron Shani said nearly nine in ten of the users who moved from commodities into equities had also traded cryptocurrencies on eToro, showing significant overlap between customers using its different asset classes. Crypto trading on eToro has continued to fall Crypto activity remained much weaker than a year earlier despite eToro continuing to invest in digital-asset products. The company reported $1.59 billion in total revenue for the second quarter, compared with about $2 billion during the corresponding period of 2025. Revenue reported from crypto assets fell to roughly $1.34 billion from $1.9 billion a year earlier. Because eToro reports cryptoasset revenue on a gross basis, much of the figure is offset by the cost of acquiring the cryptoassets involved in customer transactions. Crypto-related cost of revenue reached about $1.35 billion during the quarter, while net income attributed to crypto assets was $19.7 million. Total company net income stood at $53.4 million, while equities and commodities-related trading generated about $141 million in net trading income. The decline followed weakness recorded earlier in the year. In May, crypto.news reported on eToro’s results showing that April crypto trades had fallen 32% from a year earlier to 2 million, while the amount invested per crypto trade dropped 22% to $207. The company nevertheless posted $82 million in first-quarter net income, up 37% year over year. The drop accelerated into July. eToro recorded about 1.4 million cryptocurrency trades during the month, 73% fewer than a year earlier, while the amount invested in crypto fell 50%. Earlier first-quarter figures showed the same pattern in crypto-related earnings. Crypto generated about $13 million in profit during Q1, down from $46 million in the same quarter of 2025, even as eToro’s overall net contribution increased to $258 million. At the same time, assets under administration reached $17 billion at the end of March, up 15% year over year, while funded accounts increased 12% to 4.02 million. By April, assets under administration had increased further to $18.7 billion. eToro is still building its crypto business Lower crypto trading activity has not stopped eToro from adding products and infrastructure tied to digital assets. On April 30, the company completed its acquisition of Zengo, a self-custodial crypto wallet provider that uses multi-party computation technology rather than conventional seed phrases. eToro said the purchase would help connect its traditional financial products with onchain infrastructure. The company also activated its BitLicense earlier this year to begin offering cryptocurrency trading in New York. At the time, eToro had expanded its crypto offering to more than 150 assets globally, including more than 100 assets available to U.S. customers. In July, eToro led a $12.5 million strategic investment in decentralized perpetual futures exchange Extended, with Jump Crypto also participating. As previously covered by crypto.news, the financing was accompanied by a partnership between Extended and Zengo to explore access to financial markets through onchain trading infrastructure. Extended operates using StarkWare’s StarkEx technology and focuses on perpetual futures that can be traded through a self-custodial structure. The platform opened trading to all users in late 2024. eToro has also pushed equities onto blockchain rails eToro’s work around digital assets has included attempts to combine its equities business with blockchain-based settlement rather than relying only on cryptocurrency trading. In July 2025, eToro announced plans to issue tokenized versions of U.S.-listed stocks on Ethereum, alongside 24/5 trading for 100 U.S. stocks and exchange-traded funds. The company also disclosed work with CME Group on spot-quoted futures. Under the proposed tokenization model, users would be able to move supported stock tokens onto Ethereum and redeem them against underlying positions held through eToro. Assia said at the time that the company planned to start with stocks as part of its tokenization work. The initiative followed eToro’s 2019 acquisition of Danish tokenization company Firmo and its subsequent introduction of tokenized gold, silver and fiat currencies. Its U.S. product expansion has since continued alongside those blockchain initiatives, including New York crypto trading, the Zengo purchase and the planned acquisition of TradeZero.
