eToro Announces Acquisition of U.S. Active Trader Brokerage TradeZero
eToro Group Ltd. announced today that it has reached an agreement to acquire TradeZero, an online brokerage focused on the U.S. market and primarily serving active traders.
According to the terms of the agreement, eToro expects the total purchase price to be up to $231 million, including cash and up to 2.5 million newly issued Class A ordinary shares, with the specific amount to be adjusted based on customary transaction price adjustment mechanisms.
Founded in 2015, TradeZero offers a new generation trading platform, global brokerage infrastructure, a highly engaged trader community, and access channels to the Canadian market. It reported approximately $80 million in revenue over the past 12 months, with a gross margin of 81%.
The transaction is expected to close in the first half of 2027, pending necessary regulatory approvals, and is anticipated to be accretive to eToro's adjusted earnings per share in the first year following completion.
eToro CEO Yoni Assia stated that this move is an important step in building its U.S. business, enabling faster rollout of new products for U.S. customers and enhancing its overall product portfolio.
From a market mechanism perspective, the social trading platform accelerates its North American expansion by acquiring a U.S. brokerage license and active trader infrastructure, with funds flowing from eToro to TradeZero shareholders, putting pressure on traditional local brokerages and pure crypto platforms in the U.S. competition.
Jefferies acted as eToro's exclusive financial advisor.
Source: Public Information
ABAB AI Insight
As a global social trading and multi-asset platform, eToro has previously faced regulatory limitations in its U.S. operations. This acquisition of TradeZero allows it to directly access brokerage infrastructure and an active trader community.
The capital structure reflects a mixed consideration of cash and stock, motivated by the need to quickly enhance product capabilities in the U.S. and gain entry into Canada, while leveraging high-margin assets to boost profitability and extend offerings from crypto and social trading to a more comprehensive stock options trading.
Similar platforms like Robinhood have expanded active trading tools through acquisitions or in-house development, currently competing for the share of active traders in the U.S. multi-asset trading platform market.
Essentially, this is about market entry and capability enhancement, with the mechanism being that regulatory and infrastructure barriers make acquisition an efficient path to entering the U.S. active trading market.
ABAB News · Cognitive Law
Regulatory market expansion often relies on acquiring local licenses
Active trader infrastructure is a scarce asset
Mixed consideration balances cash and equity dilution