eToro to Acquire TradeZero to Accelerate Expansion in the U.S.

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eToro has agreed to acquire TradeZero, a U.S.-focused brokerage for active traders, in a deal worth up to $231 million. The agreement, announced Tuesday, combines cash with up to 2.5 million newly issued eToro Class A shares, subject to standard purchase-price adjustments. eToro said the deal is expected to be accretive to its adjusted earnings per share within the first year.

🚨 We’ve entered into an agreement to acquire @tradezero, a US-focused online brokerage serving active traders.

This is an important step in building our US business. Welcome to the family, TradeZero!

— etoro (@eToro) August 11, 2026

TradeZero’s Business and Trading Infrastructure

TradeZero was founded in 2015 and operates broker-dealer entities in the United States, Canada, the Bahamas and Europe. TradeZero received regulatory approval for retail equity and options trading in Canada in 2022.

Over the twelve months ended June 30, 2026, TradeZero generated about $80 million in revenue at an 81% gross margin. That puts the purchase price at roughly 2.9 times trailing revenue, equal to about 8.6% of eToro’s current market capitalization.

TradeZero’s core tools, including its ProScanner stock scanner, real-time short-locate inventory, and options trading. eToro introduced its Edge platform and a feature called Equity Buying Power in the second quarter, both aimed at active traders, but neither replicates a broker-dealer’s locate inventory or options infrastructure.

Deal Terms and Timeline

The companies expect the acquisition to close in the first half of 2027, pending regulatory approval. Neither side has disclosed which regulators must sign off or whether the agreement includes a termination fee.

eToro filed the agreement’s terms with the U.S. Securities and Exchange Commission as an exhibit to a filing made the same day. eToro’s financial adviser on the deal is Jefferies, with Simpson Thacher & Bartlett as legal counsel. TradeZero worked with J.P. Morgan Securities and Choate, Hall & Stewart.

“This combination gives us a faster path to launching new products for U.S. customers,” eToro CEO Yoni Assia said. TradeZero CEO Daniel Pipitone said the deal gives his company “the scale to accelerate innovation,” pointing to eToro’s global platform and user base.

eToro’s Broader U.S. Push

eToro’s U.S. strategy has increasingly focused on broadening the range of financial products available to American customers. The TradeZero transaction marks another step toward serving more active traders through a wider brokerage offering. The company has also expanded into eToro onchain derivatives through its investment in Extended, an onchain perpetual futures platform, as it broadens its trading infrastructure across traditional and blockchain-based markets.

• September 2024: eToro’s U.S. crypto arm settled with the Securities and Exchange Commission for $1.5 million and agreed to limit U.S. customers to trading Bitcoin, Bitcoin Cash and Ether.
• May 2025: eToro listed on the Nasdaq, about four years after first filing for a U.S. listing.
• April 2026: eToro activated crypto trading for New York customers after a three-year wait for state approval.
• April 15, 2026: eToro acquired crypto wallet startup Zengo for about $70 million to add self-custodial crypto storage.
• Q2 2026: eToro launched the Edge platform and Equity Buying Power feature, both aimed at active traders.
• August 11, 2026: eToro announced the acquisition of TradeZero for up to $231 million.
• H1 2027: The TradeZero acquisition is expected to close, subject to regulatory approvals.

Market Reaction to Earnings and Deal

The announcement landed alongside eToro’s second-quarter results. Funded accounts grew 18% year over year to 4.28 million, and assets under administration rose 10% to $19.2 billion. eToro shares fell to roughly $32.05 in pre-market trading Tuesday, down about 5.7% from Monday’s close, after the earnings and acquisition news went out together.

The stock has traded between $24.74 and $58.82 over the past 52 weeks, and eToro’s market capitalization stood at about $2.7 billion heading into Tuesday’s session. Needham analyst John Todaro maintained a Buy rating on the stock with a $76 price target, citing quarterly results that beat Wall Street estimates on both revenue and adjusted EBITDA.