eToro keeps making its case to Wall Street. The Israeli social trading firm reported second quarter results on 11 August 2026 that beat expectations for the third quarter in a row, then told investors it will buy TradeZero, a US brokerage built for active stock traders, in a cash and stock deal worth up to $231 million. The transaction is expected to close in the first half of 2027 and still needs regulatory approval.
The quarter itself was solid rather than spectacular. Net contribution rose 9 percent to $229 million, GAAP net income jumped 77 percent to $53 million, and adjusted earnings came in at 68 cents per diluted share against 56 cents a year earlier. Funded accounts grew 18 percent to 4.28 million, assets under administration reached $19.2 billion, and the company is sitting on $1.2 billion in cash. That pile is what makes a $231 million acquisition easy to write.
Why TradeZero, and Why Now
TradeZero gives eToro something it has never had: a real foothold with US day traders. The target generated roughly $80 million in revenue over the trailing twelve months, which puts the price near 2.9 times revenue, and eToro expects the deal to add to profits in its first year. Chief executive Yoni Assia said the combination gives the firm a faster path to launching new products for US customers. In plain terms, eToro built its business on European and UK retail flow, and it knows the growth it promised the market lives in America.
There is a pattern here. eToro closed two smaller purchases in the same quarter, Zengo and Bit2C, both aimed at crypto self custody. Add TradeZero and the shopping list reads like a map of where retail broking is heading: US equities, active traders and crypto infrastructure, stacked on top of the copy trading engine that made the brand famous. The firm now describes itself through four pillars, trading, investing, wealth management and neo banking, which is a long way from the CFD platform many forex traders first met.
What It Means for the Rest of the Industry
For the CFD industry the message is uncomfortable. Listed platforms with diversified revenue, eToro, Plus500, IG and Robinhood among them, are using public currency and cash to buy growth while private CFD brokers fight over the same mature markets. Consolidation has moved from rumor to routine. Expect the next bids to chase exactly what TradeZero has: a US licence, an active client base and technology that survives due diligence.
BestForex.io View
Three Straight Beats and a Tidy Acquisition Is Exactly What a Newly Listed Broker Is Supposed to Deliver.
eToro is delivering it. The part worth watching is the fine print. The deal does not close until the first half of 2027 and still needs regulators to say yes, which is a long runway for a partly stock funded price to wobble.
We also note what eToro did not dwell on: CFD trading, once the heart of the business, gets less and less airtime in the story it tells investors.
When a broker goes quiet about a product, the clients still using it should ask why.
About the Company
About eToro
Regulator
FCA, CySEC, ASIC, US authorities
Jurisdiction
United States | Global
Action Type
Acquisition of TradeZero plus Q2 2026 results
Penalty
None | Deal worth up to $231 million
eToro is a social trading platform founded in Israel in 2007 by Yoni Assia, Ronen Assia and David Ring. It listed on the Nasdaq in 2025 under the ticker ETOR and serves clients in more than 70 countries with stocks, ETFs, crypto and CFDs through entities regulated by the FCA, CySEC, ASIC and US authorities. As of mid 2026 the group reports 4.28 million funded accounts and $19.2 billion in assets under administration.
Frequently Asked Questions
What is eToro paying for TradeZero?
Up to $231 million in a mix of cash and stock. TradeZero generated about $80 million in revenue over the trailing twelve months, so the price works out near 2.9 times revenue, and eToro expects the deal to add to profits in its first year.
How did eToro perform in Q2 2026?
Net contribution of $229 million, up 9 percent on the year, GAAP net income of $53 million, up 77 percent, and adjusted diluted earnings of 68 cents per share. Funded accounts reached 4.28 million and assets under administration hit $19.2 billion.
Is eToro still a CFD broker?
Yes. CFDs remain part of the offer through entities regulated by the FCA, CySEC and ASIC, but the group increasingly presents itself as a multi asset platform built on trading, investing, wealth management and neo banking.
When does the TradeZero deal close?
eToro expects completion in the first half of 2027. The deal still needs regulatory approval, and the final value can move with closing conditions. See how eToro compares in our Best Forex Brokers in 2026 ranking.
Editor's note & source: Financial figures drawn from eToro's own second quarter 2026 results release. The TradeZero transaction remains subject to regulatory approval and had not closed at the time of publication. This article is not investment advice. Last updated: 15 August 2026.