eToro to Acquire TradeZero for $231M to Boost US Presence

eToro announces a $231M acquisition of TradeZero to secure US brokerage infrastructure and target active stock and options traders by early 2027.

The acquisition will provide eToro with additional brokerage infrastructure in the US and Canada, broadening its reach among active individual traders.

Deal Combines Cash and New eToro Equity

The $231 million purchase price will be settled through a combination of cash and up to 2.5 million newly issued eToro Class A common shares. The final valuation remains subject to standard closing adjustments.

Founded in 2015, TradeZero focuses primarily on active traders of US stocks and options. For the 12 months ending June 30, 2026, the company generated approximately $80 million in revenue with a gross margin of 81%, adding a highly profitable and established business to eToro’s broader investment platform.

The transaction is expected to close in the first half of 2027, pending necessary regulatory approvals. eToro anticipates the acquisition will be accretive to adjusted earnings per share within the first full year following completion.

This deal marks eToro’s third acquisition agreed upon in 2026, highlighting the increased pace at which the company is deploying its capital.

Why TradeZero is More Than Just a Customer Acquisition

The strategic value of this deal extends beyond TradeZero’s user base. eToro gains access to established brokerage infrastructure in the US and Canada, regulatory capabilities, and specialized desktop and mobile trading technology.

CEO Yoni Assia identified this infrastructure as a primary driver for the deal. Rather than building the necessary systems for the US market from scratch, the acquisition allows eToro to integrate a platform that is already operational.

TradeZero also serves a distinct investor profile. While eToro is built around a global community of retail investors across multiple asset classes, TradeZero focuses on high-frequency stock and options trading.

This move positions eToro more directly within the active trader segment, where execution speed, sophisticated analytical tools, and specialized infrastructure are critical competitive factors.

Equities Drive eToro’s Second Quarter Growth

The acquisition announcement coincided with stronger-than-expected second-quarter results. eToro reported adjusted earnings of $0.68 per share, beating Wall Street’s consensus estimate of $0.61.

Increased market activity served as a primary revenue driver. Net income from trading stocks, commodities, and currencies rose 24% year-over-year to $141.6 million, with the company noting particularly robust activity in equities.

Growth Metrics at a Glance:

• Funded Accounts: 4.28 million, up 18% year-over-year.
• Net Deposits: $229 million, a 9% increase.
• Net Income (Stocks, Commodities, FX): $141.6 million, up 24%.

These financial results provide eToro with a strong foundation to integrate a business that already generates approximately $80 million in annual revenue.

Shifting Focus to the US Market

For eToro, the ultimate test will not just be whether TradeZero adds revenue, but how effectively the acquired infrastructure accelerates US expansion and captures market share in active stock and options trading.

The deal structure is significant; while the partial stock payment limits immediate cash expenditure, it results in dilution for current shareholders. Investors will likely weigh this dilution against the projected earnings growth TradeZero is expected to contribute post-integration.

Regulatory approval is the next critical milestone. With the closing set for the first half of 2027, there will be a significant lead time before TradeZero’s financials are fully reflected in eToro’s reporting. Until then, the performance of the core business—specifically equity trading—will remain the primary indicator of growth momentum.