eToro to Buy US Brokerage TradeZero for Up to $231M as Crypto Revenue Shrinks

Acquisition Amount

$231M

Total amount eToro agreed to pay for the acquisition of TradeZero.

TradeZero Revenue

$80M

Revenue generated by TradeZero in the twelve months ended June 30.

Crypto Revenue Decline

29%

The percentage decline in eToro's crypto revenue from $1.91 billion to $1.35 billion year-over-year.

§ 01 Executive Snapshot

What: eToro has agreed to acquire U.S. brokerage TradeZero for up to $231 million.
Who: eToro Group and TradeZero Holding Corp.
Why it matters: This acquisition aims to enhance eToro's market presence in the U.S. and diversify revenue streams amid declining crypto revenues.

eToro will pay up to $231 million in cash plus up to 2.5 million newly issued Class A shares for TradeZero.
TradeZero generated approximately $80 million in revenue with an 81% gross margin in the second quarter.
eToro's crypto revenue fell to $1.35 billion in Q2 from $1.91 billion a year earlier, representing a significant decline.
Net trading income from equities, commodities, and currencies increased to $141.6 million from $114.0 million.
eToro expects the acquisition to close in the first half of 2027, pending regulatory approvals.

The acquisition follows a series of strategic moves by eToro, including the purchases of crypto wallet firm Zengo and exchange Bit2C in 2026, indicating a shift towards strengthening its operational foundation.
eToro's growing focus on U.S. markets aligns with the broader trend of increasing regulatory scrutiny and demand for regulated brokerage services.

The immediate consequence of this deal may solidify eToro's foothold in the U.S. market, potentially increasing its customer base and product offerings.
Long-term, this acquisition could enhance eToro's competitive positioning against other brokerages by leveraging TradeZero's infrastructure and trading tools.

The deal is subject to customary closing conditions, including regulatory approvals, which could delay the acquisition timeline.
TradeZero's past enforcement record with the SEC poses a risk that could affect eToro's reputation and operational stability.

The expected closing of the TradeZero acquisition in the first half of 2027 will be a critical milestone to monitor.
Future developments regarding regulatory responses or compliance issues related to TradeZero's past may signal the success or challenges of this acquisition.

§ 07

What is the acquisition eToro is making?

eToro has agreed to acquire U.S. brokerage TradeZero for up to $231 million.

Why is eToro acquiring TradeZero?

This acquisition aims to enhance eToro's market presence in the U.S. and diversify revenue streams amid declining crypto revenues.

When is the acquisition expected to close?

eToro expects the acquisition to close in the first half of 2027, pending regulatory approvals.

Who will benefit from the acquisition?

The acquisition may solidify eToro's foothold in the U.S. market, potentially increasing its customer base and product offerings.