eToro Group Ltd. announced Tuesday that it has agreed to acquire TradeZero, a US-focused online brokerage serving active traders, in a deal worth up to $231 million. The acquisition deepens the platform's push into the American equities market and is expected to close in the first half of 2027, subject to regulatory approval. The extended timeline to closing aligns with the standard review process for US broker-dealer changes of control, which require FINRA approval in addition to other regulatory clearances.

Founded in 2015, TradeZero operates commission-free US stock and options trading through its broker-dealer subsidiaries, with a presence across the United States, Canada, and international markets. For eToro, the transaction brings broker-dealer infrastructure, next-generation trading platform technology, an engaged active-trader community, and entry into the Canadian market.

"Today's announcement is an important step in building our US business," said eToro Co-Founder and CEO Yoni Assia in a statement. "This combination gives us a faster path to launching new products for US customers and strengthens our offering. Together, we'll innovate faster as we continue building the global financial superapp for the next generation of users."

The consideration consists of cash and up to 2.5 million newly issued Class A common shares of eToro, subject to customary adjustments. TradeZero generated approximately $80 million in revenue with 81% gross margins over the last twelve months.

The acquisition positions eToro to compete more directly with larger US brokers such as Robinhood. While eToro built its brand on retail crypto trading and social copy-trading features, US equities have represented a more challenging market segment. TradeZero provides the licensed US broker-dealer rails and active-trader customer base needed for that competitive push. The deal-acceleration approach reflects a path taken by other digital-first trading platforms that have opted to acquire regulated broker-dealer infrastructure rather than navigate the multi-year process of building it organically.

The equities expansion comes as eToro's US cryptocurrency offerings remain limited. Following a 2021 SEC settlement, American users can trade only Bitcoin, Ethereum, and Bitcoin Cash, with a 180-day window having been provided to offload all other digital assets. eToro has since pursued workarounds, including the $70 million acquisition of self-custody wallet firm Zengo and a trial of tokenized stocks on Ethereum for 24/7 trading.

Investor Reaction

The announcement did not buoy eToro's stock. Shares, which trade under the ticker ETOR, fell more than 10% during Tuesday trading to a low of $30.11, closing down approximately 10.5% on the day. The decline widened from a 4.4% premarket drop. The company's market capitalization stands at roughly $3.33 billion.

The selloff occurred despite eToro beating second-quarter earnings estimates. The company reported Q2 2026 results with earnings per share of $0.68, surpassing the $0.61 consensus. However, crypto revenue declined approximately 30% during the quarter even as equities led growth.

For the quarter, eToro reported 4.28 million funded accounts, up 18% year-over-year, with net contribution of $229 million. The company, which priced its IPO at a $3.7–4 billion valuation in 2025, is funding the TradeZero purchase partly through the issuance of up to 2.5 million new shares while pursuing a US equities market where Robinhood already holds a dominant position.