Increasing competition with Robinhood: eToro buys American broker for $231 million

The securities trading platform eToro, whose stock is falling on Wall Street by 9%, is acquiring the American broker TradeZero in a deal that could reach a volume of $231 million. The company will pay $75 million in 2.5 million shares and the balance in cash.

The acquisition is intended to expand eToro's presence in the US, which is currently strong mainly in markets outside the US and is struggling to compete against the trading platform Robinhood in the North American market. TradeZero, founded in 2015, focuses on American and Canadian investors and recorded revenue of about $80 million in the last 12 months, with a gross profit margin of 81%. eToro estimates that the acquisition will increase its profitability as early as the first year after its completion. The investment bank Jefferies advised on the deal. The acquisition is the third signed by eToro this year, after it completed the acquisition of crypto companies Zengo and Bit2C during the quarter.

In addition to the acquisition, eToro published its financial reports for the second quarter of 2026, which revealed a reduction in dependence on cryptocurrency trading and an improvement in profitability. The contribution of capital market trading activity rose by 25% to $142 million, while the contribution from crypto trading fell to only $11 million. The growth in stock activity is particularly notable against the backdrop of weakness in crypto. According to July data published by the company, the number of crypto transactions stood at only 1.4 million, a drop of 73% compared to July 2025. The average investment amount in a crypto transaction fell by 50% to $182. On the other hand, the number of transactions in the capital market remained stable at 48.5 million, although the average investment amount per transaction fell by 23% to $207.

The company's total net revenue rose by 9% to $229 million. Bottom line, eToro recorded a net profit of $53 million, a jump of 77% compared to $30 million in the second quarter of 2025. The number of active accounts, those with trading activity, jumped by 18% to 4.28 million.