eToro buys its way into the US active trader market
- The bull case is that eToro is adding long-term assets, subscriptions, and AI tools to offset crypto cycles.
- eToro is buying TradeZero for $230 million to bring margin, shorting, and options to United States users.
- Capital markets revenue grew 25% year over year to $142 million in Q2 2026 as users moved into equities.
- Crypto still matters heavily, and its swings can make earnings look strong one quarter and weak the next.
- The company secured a United States RIA license, clearing the path for Smart Portfolios in the second half of 2026.
More tools for active traders
eToro started as a simple trading app, but it wants to become a broader investing home. The company is adding margin trading, options, and AI features so users stay active when crypto markets cool down.
The bull case has real support from recent moves. In Q2 2026, capital markets revenue grew 25% year over year to $142 million as users shifted from commodities into equities. The planned $230 million purchase of TradeZero is a major step. It gives eToro the setup it needs to offer margin and options in the United States.
New products keep adding choices for users. The company launched eToro Edge for active traders. It also connected Agent Portfolios to outside AI models like Grok and Claude, letting these models execute trades automatically.
The bear case is that this is still a trading business with cycles. Crypto can pull users away from stocks and then cool fast. Expanding into the heavily regulated United States market also brings high compliance costs. Management must now prove it can integrate TradeZero without spending too much to acquire new customers.
Spreads, interest, and add-ons
eToro makes money when users trade. It earns net trading contribution from capital markets, meaning equities, commodities, and currencies, and from cryptoassets. The company keeps part of the spread or fee tied to trades.
A second profit stream is net interest income. eToro earns interest from user cash, corporate cash, and margin positions, after related costs. This is helpful in higher-rate periods, but it weakens when rates fall or users reduce borrowed positions.
The company also earns from eToro Money, which includes currency conversion, withdrawals, and debit card fees. The newer eToro Club Subscription adds a recurring revenue stream, but it is still small compared with trading and interest.
The model works best when users stay active across asset classes. If they rotate from crypto into equities, eToro still earns. If users stop trading entirely, or if regulators slow down new features, revenue can drop quickly.
Products that keep users active
Multi-asset trading
Users can trade equities, commodities, currencies, and crypto. This is still the main money engine.
TradeZero and eToro Edge
TradeZero brings margin, shorting, and options to the United States. eToro Edge is a new web platform built for active traders.
CopyTrader
CopyTrader lets a user mirror another investor's trades. It is a key social feature expanding globally.
Smart Portfolios
Smart Portfolios package strategies into portfolios that users can buy. An RIA license clears the way for a United States launch in late 2026.
Agent Portfolios and AI tools
Users can allocate capital to AI strategies. New connections let outside models like Grok and Claude execute trades automatically.
Zengo wallet and Web3
Zengo adds a self-custodial crypto wallet. It expands eToro's crypto reach to thousands more tokens.
eToro Money and savings
eToro Money includes the card, currency conversion, and withdrawals. The company is adding local saving products like retirement partnerships.
What fed 2025 net contribution
This mix uses fiscal 2025 net contribution components from eToro's 2025 Form 20-F. The mix can shift fast because users rotate between crypto, commodities, equities, currencies, and cash.
What could break the thesis
Crypto cycle whiplash
High impact · High oddsCrypto trading can rise fast and then fade. If both crypto and capital markets slow down at the same time, the multi-asset safety net gets weaker and revenue will drop.
Lower rate pressure
Medium impact · High oddsNet interest income depends on user cash, margin balances, and interest rates. If rates keep falling or users borrow less during volatile periods, this income line can shrink.
Cost of United States expansion
High impact · Medium oddsThe $230 million TradeZero purchase gives eToro tools for the United States market, but it brings integration risk. Building a highly regulated broker-dealer business is expensive.
24/5 trading may not add volume
Medium impact · Medium oddsExtended hours trading sounds good, but it may only move trades from regular hours into aftermarket hours. Management does not know how much of this is new activity.
Web3 compliance
Medium impact · Medium oddsZengo moves eToro deeper into self-custody and DeFi. More tokens and on-chain activity bring tougher compliance, security, and regulatory demands.
In one breath
How does eToro make money?
eToro earns from trading activity, interest income, eToro Money fees, and newer subscription services. Trading is still the biggest driver, while interest income depends on rates and user balances.
Is eToro mainly a crypto company?
Crypto is important, but eToro is not only a crypto platform. It also earns from equities, commodities, currencies, portfolios, interest, and money services, and capital markets were strong in mid-2026.
What is the main growth catalyst for eToro?
The clearest catalysts are the planned TradeZero acquisition to expand in the United States, Agent Portfolios, and the full United States rollout of CopyTrader and Smart Portfolios.
What is the biggest risk for ETOR investors?
The biggest risk is that trading activity stays cyclical. If crypto cools, equities slow, and net interest income falls at the same time, earnings can be lumpy.
Sources and research notes
This page combines Finn's company research with public filings and other cited materials. The thesis is reviewed when material company information changes; Finn Scores use the latest available scoring data.
- Thesis reviewed
- August 16, 2026
- Score data
- September 6, 2026
- Reviewed by
- Shivam Bharuka
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