eToro Buys TradeZero, Eyes US Market Domination

eToro has reported exceeding second-quarter profit estimates, announcing a significant acquisition as it pursues U.S. market expansion. The trading platform acquired rival TradeZero in a deal valued at up to $231 million, combining cash and stock. This move is intended to accelerate eToro's growth in the United States, a market it entered in 2019.

Driven by volatile market conditions that benefit trading platforms, eToro saw a 24% rise in net trading income from equities, commodities, and currencies to $141.6 million in the reported quarter. On an adjusted basis, the company posted earnings of 68 cents per share, surpassing analyst expectations.

The acquisition of TradeZero, a U.S.-focused brokerage founded in 2015 with operations in Canada and international markets, is expected to enhance eToro's retail customer reach and trading infrastructure. TradeZero generated approximately $80 million in revenue over the last twelve months. The transaction, anticipated to finalize in the first half of 2027, is projected to boost adjusted profits in its initial year.

This strategic combination aims to provide eToro with a faster pathway to introducing new products for its U.S. clientele, reinforcing its offerings in a key growth region. While Europe and the UK have historically been core markets, eToro has increasingly focused on expansion across the Asia Pacific and Americas regions.