External ReportingPublicado hace 3 días

eToro Agrees to Acquire TradeZero in $231M US Expansion, Stock Tanks 10%

The crypto-friendly trading platform is betting on US equities as regulators keep squeezing its token menu.

Por Jose Antonio LanzPublisher Decrypt 3 min de lectura

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In brief

eToro agreed to buy TradeZero, a US active-trader brokerage, for up to $231 million, it said Tuesday.
The deal adds broker-dealer infrastructure and Canadian market access; it's expected to close in the first half of 2027.
eToro's US crypto lineup stays narrow after a 2021 SEC settlement restricted it to Bitcoin, Ethereum and Bitcoin Cash.

eToro said Tuesday it will buy TradeZero, a US-focused online brokerage that serves active traders, in a deal worth up to $231 million. The agreement, announced by eToro Group Ltd., deepens the platform's push into the American equities market.

TradeZero, founded in 2015, runs commission-free U.S. stock and options trading through its broker-dealer subsidiaries. For eToro, the appeal is the plumbing: next-generation trading platforms, broker-dealer infrastructure, an engaged trader community, and a door into the Canadian market. TradeZero operates across the U.S., Canada, and international markets.

Myriad: Which companies will IPO before 2027? Click the image to place a prediction.

eToro framed the purchase as a shortcut to new U.S. products. "Today's announcement is an important step in building our US business," eToro Co-Founder and CEO Yoni Assia said in a statement. "This combination gives us a faster path to launching new products for US customers and strengthens our offering. Together, we'll innovate faster as we continue building the global financial superapp for the next generation of users."

With this purchase eToro may be positioning itself for easier competition against bigger and more popular brokers. The company built its name letting retail users trade crypto and copy other investors, but U.S. equities have been a harder wedge. TradeZero brings the licensed U.S. rails and the active-trader base that competes head-on with Robinhood.

The consideration runs to up to $231 million, "consisting of cash and up to 2.5 million newly issued Class A common shares of the Company," per the release, subject to customary adjustments. TradeZero generated about $80 million in revenue with 81% gross margins over the last twelve months.

The equities bet lands as eToro's U.S. crypto shelf stays thin. After a 2021 SEC settlement, American users can only trade Bitcoin, Ethereum and Bitcoin Cash, with a 180-day window to offload everything else. eToro has been patching around that limit instead—buying self-custody wallet firm Zengo for $70 million and trialing tokenized stocks on Ethereum for 24/7 trading.

Investors sold the news

The announcement didn't lift the stock. On the daily charts, eToro, which trades as ETOR, slid more than 10% in Tuesday trading to a low of $30.11 and was down about 10.5% on the day. The drop widened from a 4.4% premarket slip. The stock currently stands at roughly $3.33 billion of market capitalization.

The selloff came even though eToro beat second-quarter estimates—EPS of $0.68 against a $0.61 consensus. It may be that the crypto bear market is weighing on the company. Crypto revenue fell about 30% in the quarter even as equities led growth. eToro is funding the TradeZero purchase partly with up to 2.5 million new shares, and chasing a U.S. equities market where Robinhood already dominates.

eToro reported 4.28 million funded accounts in Q2, up 18% year-over-year, with net contribution of $229 million. It priced its IPO at a $3.7–4 billion valuation in 2025 and expects the TradeZero deal to close in the first half of 2027, after regulatory approval.