UNITED STATES OF AMERICA —Trading platform operator eToro Group has agreed to purchase online brokerage TradeZero for a total consideration of up to $231 million in cash and stock, aiming to strengthen its position in North America. Under the deal terms, eToro will issue up to 2.5 million Class A common shares alongside a cash component to complete the transaction, which remains subject to customary regulatory approvals. The acquisition is projected to close during the first half of 2027 and is anticipated to be accretive to adjusted earnings per share within its first year post-completion.
This strategic transaction provides eToro with established broker-dealer operations, advanced short-selling tools, and direct access to active retail traders in the United States, Canada, and select international regions. Over the twelve months ending June 30, 2026, TradeZero generated approximately $80 million in revenue while delivering an 81% gross margin in the second quarter of 2026. Integrating these high-margin operations allows eToro to fast-track its product development roadmap and broaden its financial services ecosystem.
The acquisition highlights a growing trend of consolidation within the retail brokerage and fintech sector, where companies are seeking scale, cross-border capability, and localized compliance structures to survive shifting market dynamics. By absorbing TradeZero's specialized trading platforms, eToro strengthens its competitive posture against domestic U.S. brokerages while diversifying its revenue streams across new customer segments.
For market participants and institutional investors, the combination underscores the value of proprietary trading infrastructure in driving international expansion. eToro Group is a Nasdaq-listed social trading and investment platform founded in 2007 that enables multi-asset trading for users across 75 countries. TradeZero is a technology-focused retail brokerage founded in 2015 that specializes in advanced trading software and short-equity tools for active market participants.
