eToro Group Ltd. has entered into an agreement to acquire TradeZero, a US-focused online brokerage serving active traders, for up to $231 million.
The deal, announced on August 11, 2026 with Q2 2026 results, is designed to accelerate eToro’s presence in the US and strengthen its equities and active trading offering.
The acquisition is strategically important because active traders represent a highly creative and valuable cohort on eToro platform. The ability to offer next-generation trading platforms, broker-dealer infrastructure, and short-selling tools is becoming increasingly important.
By combining eToro’s global platform with millions of users in 75 countries and TradeZero’s proprietary technology and highly engaged community, the companies aim to launch new products for US customers faster and build the financial superapp for next generation.
The transaction is expected to close in first half of 2027, subject to regulatory approvals and customary closing conditions. It is expected to be accretive to adjusted EPS in first full year upon completion.
Key Details of the Acquisition
| Detail | Information |
| Acquirer | eToro Group Ltd. |
| Target | TradeZero (TradeZero Holding Corp.) |
| Acquirer Country | Israel (HQ Bnei Brak / Tel Aviv), Nasdaq-listed, US operations |
| Target Country | United States (with Bahamas, Canada, EU entities) |
| Acquirer Industry | Trading and Investing Platform, FinTech, Brokerage |
| Target Industry | Online Brokerage, Active Trading, Broker-Dealer |
| Deal Type | Acquisition |
| Deal Value | Up to $231 Million |
| Payment | Cash + up to 2.5 Million newly issued Class A common shares, subject to customary adjustments |
| Announcement Date | August 11, 2026 |
| Expected Closing | First half of 2027 |
| Acquirer Stock | NASDAQ: ETOR, listed May 14, 2025 |
| Acquirer Employees | 1,520 employees |
| Financial Advisors | Jefferies (eToro), J.P. Morgan Securities (TradeZero) |
| Legal Advisors | Simpson Thacher & Bartlett (eToro), Choate Hall & Stewart (TradeZero) |
| Acquisition Count | 3rd acquisition signed by eToro in 2026 |
| Share Reaction | ETOR shares fell ~10.5-12% on announcement day, low $30.11, market cap ~$2.09B |
All deal: click here
eToro Company Introduction
eToro Group Ltd. is a trading and investing platform headquartered in Bnei Brak, Tel Aviv, Israel, listed on NASDAQ: ETOR since May 14, 2025. Founded in 2007 with vision where everyone can trade and invest in simple and transparent way, by Yoni Assia, Ronen Assia, David Ring, Johnathan Assia.
Major areas: Online social trading for crypto, stocks, ETFs, CFDs, investment platform where you can trade, invest, save and spend, copy other investors, invest in portfolio, invest with AI agent, self-custody, onchain perpetual futures, AI-powered tools, collaborative investment community. 1,520 employees, $925.73M revenue per some reports, used by millions in 75 countries. CEO Yoni Assia.
TradeZero Company Introduction
TradeZero is a US-focused online brokerage serving active traders, founded in 2015, built by active traders for active traders. CEO Daniel Pipitone, Co-Founder.
Entities: TradeZero Holding Corp. owns TradeZero Inc. Nassau Bahamas broker-dealer serving international clients since 2015, TradeZero America Inc. US broker-dealer serving US clients since 2019, TradeZero Canada Securities ULC since 2022, TradeZero Europe B.V. since 2025. Offers commission-free US stock and options trading, advanced suite of desktop, web, mobile platforms including proprietary short locator, extended-hours access, market scanners, tools for frequent trading, especially active trader.
Why Is eToro Acquiring TradeZero?
| eToro Already Has | TradeZero Brings |
| Global platform, millions users in 75 countries | Highly engaged community of active traders |
| Trading and investing platform | Next generation trading platforms, proprietary short locator |
| Nasdaq-listed, regulated | Global broker-dealer infrastructure, own broker-dealer licenses |
| Equities growth leading Q2 2026 | US, Canada, Bahamas, EU market access, $80M revenue 81% gross margin |
Flow: eToro Global Users → TradeZero Technology (Short Locate, Scanners) → Broker-Dealer Infrastructure → US + Canada Expansion → Financial Superapp
What Does TradeZero Technology Do?
1. Active trader wants to trade US stocks and options, including short selling
2. TradeZero provides proprietary short locator – technology that helps locate shares available to borrow for short selling
3. Advanced desktop, web, mobile platforms with extended-hours access, market scanners
4. Commission-free trading via broker-dealer subsidiaries
5. Community of active traders
In simple terms: Find Shares to Borrow → Short Locator → Trade Platform → Commission-Free Execution → Active Trading Community
$231 Million Cash and Stock Transaction
- Up to $231M aggregate purchase consideration consisting of cash and up to 2.5M newly issued Class A common shares, subject to customary purchase price adjustments
- $80M revenue for 12 months ended June 30, 2026, 81% gross margins – ~2.9x revenue multiple
- Expected to be accretive to adjusted EPS in first full year upon completion – complementary addition to financial profile
- 3rd acquisition signed by eToro in 2026 (per Q2 report), after strong equities growth vs crypto trades down 73% YoY
- CEO Yoni Assia: “Today’s announcement is an important step in building our US business… faster path to launching new products for US customers”
- CEO Daniel Pipitone: “TradeZero was built by active traders, for active traders… joining eToro is exciting next step”
- Jefferies exclusive financial adviser to eToro, J.P. Morgan to TradeZero
- Expected close H1 2027 subject to regulatory approvals, ETOR shares fell 10.5-12% to $29.84-$30.11 on announcement
Potential Challenges
| Risk Area | Details |
| Regulatory Approval | Requisite regulatory approvals required for broker-dealer acquisition, expected H1 2027 |
| Market Reaction | Shares fell 10.5-12% despite Q2 earnings beat as crypto trading sinks 30-73% |
| Integration | Integrating proprietary trading tools and broker-dealer infrastructure across US, Canada, Bahamas, EU |
| Crypto vs Equities | US crypto lineup narrow after 2021 SEC settlement restricted to Bitcoin, Ethereum, Bitcoin Cash – equities now driving growth |
| Competition | Extreme competition in US active trading market |
Outcome
The eToro-TradeZero up to $231M deal accelerates eToro US expansion into active equities trading. TradeZero brings next-gen platforms, global broker-dealer infrastructure from Nassau to US to Canada to EU, proprietary short locator, and engaged active trader community plus Canadian market access. For eToro, where Q2 2026 equities led growth while crypto trades fell 73% YoY, it offers accretive EPS in first year and faster path to launch products for US customers. Risks include regulatory approvals for broker-dealers, integration across four jurisdictions, and market reaction with shares down 10.5%. If closed H1 2027, it creates stronger US brokerage and distribution move toward financial superapp for next generation.
Source: SEC, eToro press
