eToro to Buy TradeZero for Up to $231M; Crypto Trades -73%

eToro has agreed to acquire U.S.-focused online brokerage TradeZero for up to $231 million in a cash-and-stock deal, the company announced alongside second-quarter results that showed cryptocurrency trading revenue falling sharply.

The acquisition gives eToro access to TradeZero's broker-dealer infrastructure, proprietary technology and active-trading customer base in the U.S., Canada and other international markets. TradeZero, founded in 2015, offers tools for frequent equity traders, including technology for locating borrowable shares for short selling. The deal is expected to close in the first half of 2027, subject to regulatory approvals. eToro will pay cash and up to 2.5 million newly issued Class A shares.

TradeZero generated about $80 million in revenue over the 12 months ended June 30, 2026, with an 81% gross margin. eToro expects the transaction to add to adjusted earnings per share during its first full year after completion. CEO Yoni Assia said TradeZero's technology and broker-dealer infrastructure would allow eToro to introduce new products to U.S. customers more quickly.

Q2 Results and Crypto Slowdown

The acquisition comes as crypto trading activity weakens. Total revenue fell to $1.59 billion from $2.09 billion a year earlier, as gross crypto revenue dropped to $1.35 billion from $1.91 billion. Crypto cost of revenue was roughly $1.35 billion, leaving net crypto trading contribution of about $12.5 million when including $19.7 million in crypto derivatives income. By contrast, net trading income from equities, commodities and currencies rose 24% to $141.6 million.

eToro also reported funded accounts up 18% to 4.28 million and assets under administration up 10% to $19.2 billion. July data showed cryptocurrency trades down 73% year over year to 1.4 million, with the average amount per trade down 50% to $182. Activity in equities, commodities and currencies was broadly unchanged at 48.5 million trades, but the average investment fell 23% to $207.

The TradeZero deal follows eToro's acquisition of self-custodial wallet provider Zengo earlier this year. Together, the moves give eToro exposure to both onchain products and conventional U.S. active brokerage. The strategy aims to reduce dependence on any single asset class, though servicing professional active traders in the competitive U.S. brokerage market will be a key challenge.