Crypto Revenue Dips; eToro acquires TradeZero, Broker Updates

Weekly Recap: Crypto Revenue Falls Across Major Platforms; eToro Bets $231M on TradeZero

Another busy week across financial markets saw crypto weakness weigh on trading revenues, while broker earnings, regulation, and expansion plans remained in focus. Trading activity softened in parts of the CFD market, while firms continued to invest in equities, technology, and new markets. AI adoption also accelerated across trading infrastructure, alongside regulatory developments in crypto and CFDs.

Crypto Revenue Falls Across Major Trading Platforms

EToro, Robinhood, and Coinbase all reported lower crypto revenue in the second quarter, as weaker market activity reduced the contribution from digital assets. eToro's cryptoasset revenue fell 30% year-on-year to $1.35 billion, while its net contribution from crypto dropped to about $12.5 million. Robinhood's cryptocurrency transaction revenue declined 38% to $100 million, despite total net revenue rising 32% to $1.31 billion. Coinbase reported $1.2 billion in total revenue and a $359 million net loss, with Bitcoin-related transactions accounting for only 12% of revenue. The declines coincided with a 12.6% fall in total crypto market capitalisation and a 27.9% drop in centralised exchange spot volume during the quarter.

eToro to Buy TradeZero for Up to $231 Million

eToro agreed to acquire US brokerage TradeZero for up to $231 million as it expands further into equities and active trading. The deal, announced alongside second-quarter results, includes cash and up to 2.5 million newly issued Class A shares. TradeZero generated about $80 million in revenue in the 12 months to June, with an 81% gross margin. eToro's net contribution rose 9% year-on-year to $229 million, while net income reached $53.5 million.

Net trading income from equities, commodities, and currencies increased by $27.6 million to $141.6 million. TradeZero operates in the US, Canada, and international markets. The acquisition requires regulatory approval and is expected to close in the first half of 2027.

Swissquote Nears CHF 100 Billion as Crypto Income Falls

Swissquote ended the first half with client assets of CHF 96.3 billion, up 19.8% year-on-year and close to the CHF 100 billion threshold. Client accounts rose 5.5% to 1.22 million, while net new money reached CHF 5.1 billion. Net revenue increased 1.7% to CHF 364.2 million, supported by higher fee and commission, trading, interest, and eForex income.

Crypto was the exception, with crypto income falling 66.2%. The weaker crypto environment prompted Swissquote to lower its full-year guidance to about CHF 730 million in net revenue and CHF 365 million in pre-tax profit. The company said its 2028 target of CHF 500 million in pre-tax profit remains unchanged despite the near-term downgrade.

Plus500 Announces $182.5 Million Shareholder Payout

Plus500 announced $182.5 million in dividends and share buybacks, exceeding its $151.9 million first-half net profit. The package comprises $100 million of buybacks and $82.5 million of dividends, or $1.2001 per share. Total shareholder returns an

Watchdog Angle

For retail forex and CFD traders, this week's news highlights the growing bifurcation in broker business models. The sharp decline in crypto revenue among major platforms underscores the volatile nature of digital asset trading and its impact on broker earnings. Meanwhile, eToro's acquisition of TradeZero signals a strategic pivot toward a more diversified offering, potentially enhancing its competitive position in US equities.

Swissquote's lowered guidance due to crypto weakness suggests that even well-established banks are not immune to crypto market cycles. Plus500's strong shareholder payout may indicate robust cash generation from its CFD operations, which could be reassuring for traders concerned about broker stability. As always, traders should monitor broker financial health and diversification strategies when assessing counterparty risk.

This is information, not investment advice.