etoro buys US focused online broker TradeZero for $231M

Israeli multi-asset brokerage eToro Group Ltd (NASDAQ: ETOR) has agreed to acquire TradeZero, a US-focused online brokerage for active traders, in a deal valued at up to $231 million. The purchase consideration comprises cash and up to 2.5 million newly issued Class A common shares, subject to customary purchase price adjustments. eToro said the deal is expected to close in the first half of 2027, pending regulatory approvals and other customary closing conditions.

TradeZero generated roughly $80 million in revenue with 81% gross margins over the trailing twelve months, implying eToro is paying just under three times revenue. eToro described the business as highly complementary, with next-generation trading platforms, global broker-dealer infrastructure and an engaged community of traders, as well as access to the Canadian market. TradeZero operates across the US, Canada and international markets.

Founded in 2015, TradeZero's subsidiaries include TradeZero Inc., a Bahamas-based broker-dealer serving international clients since 2015; TradeZero America, serving US clients since 2019; TradeZero Canada Securities ULC since 2022; and TradeZero Europe B.V. for certain EU clients since 2025. The group offers commission-free stock trading and access to US equities and options through desktop, web and mobile platforms, including its proprietary short locator.

Strategic rationale

eToro Co-Founder and CEO Yoni Assia said the acquisition is an important step in building eToro's US business, adding that TradeZero's technology, broker-dealer infrastructure and trading community give eToro a faster path to launching products for US customers. TradeZero Co-Founder and CEO Daniel Pipitone said joining eToro provides scale to accelerate innovation while TradeZero's broker-dealer infrastructure and proprietary tools broaden the combined platform.

eToro said the acquisition is expected to be accretive to adjusted earnings per share in the first full year after completion. Jefferies acted as exclusive financial adviser to eToro, with Simpson Thacher & Bartlett LLP as lead deal counsel. J.P. Morgan Securities LLC advised TradeZero, with Choate, Hall & Stewart LLP as lead deal counsel.