Global trading platform eToro has officially announced an agreement to acquire US-based online broker TradeZero for up to $231 million, payable through a combination of cash and Class A shares.
The strategic move, announced on August 11, 2026, is aimed at accelerating eToro’s expansion into the highly competitive US financial market, particularly in the derivatives segment.
Strategic Rationale Behind the Acquisition
- According to the company’s report, several key points underpin the transaction:
- Revenue Diversification: eToro’s crypto trading revenue plunged 73% year-on-year as of July 2026.
- Equities Growth: Revenue from traditional capital markets surged 24% to $141.6 million in the second quarter of 2026.
- Regulatory Infrastructure: The acquisition provides eToro with a foundation through a regulated US broker-dealer without having to build the operation from scratch.
Transaction Structure and Financial Details
- Total Deal Value: The acquisition is valued at up to $231 million, comprising cash payments and the issuance of 2.5 million new Class A shares.
- Target Performance: TradeZero generated approximately $80 million in revenue over the past 12 months, with a gross margin of 81%.
- Expected Completion: The acquisition is scheduled to be fully completed in the first half of 2027, subject to regulatory approval.
Impact on the Market and Retail Users
- Access to Advanced Trading Tools: eToro users will gain access to TradeZero’s advanced trading tools, including dedicated short-selling capabilities through its short-locator feature.
- Global Scale Synergies: The deal will combine eToro’s millions of retail investors with TradeZero’s infrastructure for equities and stock options trading.
- Broader Market Expansion: The acquisition could pave the way for eToro to expand its product offerings beyond the US into Canada and other international markets.
