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 PlatformseToro, 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 MillionMeron Shani, eToro CFO, Source: LinkedIneToro 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 FallsMarc Bürki, Swissquote CEOSwissquote 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 PayoutPlus500 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 announced by the company this year have reached $370 million.Plus500 ended June with $861.3 million in cash and no debt. First-half revenue rose 12% to $462.9 million, while operating expenses increased 20% to $278.5 million. EBITDA rose only 1% to $187.5 million, reducing the margin to 41%. The company attributed the higher cost base partly to increased customer acquisition spending, US-related costs and the stronger Israeli shekel.Plus500 Targets 20% Margin for US BusinessDavid Zruia, CEO of Plus500Plus500 expects its US futures and prediction markets business to achieve a profit margin of 20% or more, according to Chief Executive David Zruia. He compared that expected margin with a 10% market practice figure.The US operation is part of the group’s non-OTC business, which also includes share dealing and generated about $70 million of revenue in the first half, or roughly 15% of group revenue. Plus500 is targeting annualised revenue of about $140 million from the business in 2026.The company does not report the US operation as a separate segment and has not disclosed a profit figure. Zruia’s margin estimate is therefore a management expectation rather than a reported result.MFSA Puts Licence Quality Ahead of MiCA VolumeKenneth Farrugia, CEO, MFSAMalta Financial Services Authority CEO Kenneth Farrugia said the regulator is prioritising the quality of applicants over the number of licences issued under MiCA. The MFSA has licensed 22 firms under the European crypto framework, Farrugia told Finance Magnates, while stressing that stronger gatekeeping reduces the risk of admitting problematic firms.He also discussed the treatment of perpetual futures under Malta’s CFD rules and the unresolved regulatory position of prediction markets. The MFSA is also considering how artificial intelligence-driven trading should be addressed.Farrugia said the regulator’s approach is focused on legitimate business rather than licence volumes. His comments come as European regulators continue to refine supervision under MiCA following the end of its transitional period.BREAKING: Nothing has changed in Malta, for Binance or any other crypto exchanges. No licenses were granted to anyone by Malta, as of yet.Some media, even crypto media, has such a bad habit of releasing misleading news that only hurts their own credibility and our industry. CFD Broker Trading Activity Falls Despite Stable AccountsRetail CFD brokers saw trading activity weaken in the second quarter even as account numbers remained broadly stable. FM Intelligence calculations showed monthly volume per active account declined at 45 of 51 brokers tracked in both quarters.The median fell 9.7% to $3.06 million, while aggregate monthly volume across the matched group declined 7.3% to $30.5 trillion. Active accounts remained near 7.39 million, down only 0.4% excluding Japan. Only two brokers increased both active accounts and monthly trading volume.Six firms recorded higher volume per active account, although four achieved that result while their estimated account bases declined. The data indicates that account growth did not translate directly into higher trading activity during the quarter.ASIC Proposes Extending CFD Capital Rules to 2032ASIC has proposed extending Australia’s capital requirements for retail OTC derivatives issuers until October 2032, five years beyond the current expiry date. The regulator is not proposing to change the existing test, which requires the greater of AU$1 million or 10% of average revenue. Half must be held in cash or cash equivalents and half in liquid assets.The rules have applied since January 2014 and are scheduled to expire in October 2027. ASIC said its review found the instruments effective and necessary. Consultation on the proposed extension closes on 8 September. CFD-related cases accounted for about 37% of ASIC’s record AU$830 million in court-ordered civil penalties over the past year.Spotware Adds AI-Controlled Trading Through cTrader CLISpotware launched cTrader CLI, a command-line tool that allows users to manage trading accounts, cBots, backtests and market data without relying on the main graphical interface. The tool supports Windows and Linux environments, including a Docker image, and allows bots to run as external processes.Its command set covers account and symbol information, market data, orders, positions and trading history, while users can start or stop cBots and change parameters.Spotware said third-party AI applications can translate natural-language instructions into commands, extending automation beyond the platform interface. Backtests can use server data, local files or custom datasets, with reports available in HTML or JSON.Match-Trade Opens Broker APIs to AI SystemsWojciech Kopczyński, Product Owner at Match-Trade Technologies, Source: LinkedInMatch-Trade Technologies introduced AI Skills for its Broker API and CRM API, giving compatible AI systems structured access to broker data and integration documentation. The tools are designed to let users describe an intended outcome while AI assembles relevant API connections, which technical teams can then review.Match-Trade highlighted applications including reporting, reconciliation, commission calculations and client-level profitability analysis. The Skills can combine CRM records with trading and sales data, including positions, trade counts and account information. The company also used Claude to build dashboards covering traded instruments, prop trading accounts and prediction market activity.Match-Trade said the approach reduces the need to build and test individual API integrations manually, while leaving production deployment subject to technical validation.MetaQuotes Reports 1 Trillion Tokens Through MT5 AIChristoforos Theodoulou, Chief Business Officer, MetaQuotesMetaQuotes said users have processed more than 1 trillion tokens through its built-in AI assistant since the tool was introduced for the MT5 client terminal in July. Chief Business Officer Christoforos Theodoulou described the assistant as an orchestrated coding agent powered by large language models, supporting code analysis, multi-step actions and routine workflow automation.MetaQuotes said thousands of MT5 users are applying the tool to tasks including chart analysis and automated strategy development. The token figure indicates substantial early usage, but it does not measure trading performance or financial outcomes. Token consumption can reflect repeated prompts, debugging or other activity without demonstrating an improvement in strategy quality.Trading Frequency Alone Does Not Explain Trader BehaviourOded Shefer, CEO of CPattern, says a recent study linking frequent stock trading among young men with feelings of failure highlights the limits of using trading frequency as a measure of trader behaviour.The research found that 64% of daily-trading men aged 18 to 29 described themselves as failures, but frequency alone does not establish why someone trades frequently or how they experience losses. Financial pessimism may also influence the decision to enter markets, while different instruments attract traders with different objectives and risk profiles.A stock investor may behave differently from a CFD, forex, options or prediction-market trader. Understanding behaviour therefore requires more than one metric, with trading history, experience, strategy and other characteristics needed to put frequency into context.Emerging-Market Currencies Outpace G10 in 2026Emerging-market currencies have outperformed many traditional G10 pairs this year, supported by high interest-rate differentials and relatively low volatility, according to Paul Golden. The Brazilian real, Mexican peso and South African rand have been among the stronger performers.The real has gained 8% against the US dollar since January, with Brazil’s policy rate at 14%. One measure of the carry trade was up about 12% by April, its strongest start to a year since 2023. The strategy has benefited from borrowing lower-yielding currencies such as the yen or Swiss franc and buying higher-yielding emerging-market currencies.The gains highlight the potential appeal of emerging markets for FX traders, although liquidity, volatility and country-specific risks remain important considerations.Revolut Secures French Banking LicenceRevolut received a full French banking licence from the European Central Bank following a joint assessment with France’s ACPR, giving the fintech its second banking entity within the European Union. Revolut Bank S.A. will initially serve French customers before expanding the structure to Germany, Ireland, Italy, Portugal and Spain.Its Lithuanian banking entity will continue to cover the rest of the European Economic Area. Revolut said it has committed more than €1 billion across Western Europe and plans to hire more than 600 people in the region.The licence comes after the ECB imposed restrictions on new product launches by Revolut’s Lithuanian bank in 2025. The French announcement did not confirm whether similar restrictions would apply to the new entity.Revolut Names Former Trading.com CEO to Cyprus Crypto UnitGeorgios VasiliouRevolut has appointed former Trading.com CEO Georgios Vasiliou to lead its digital assets unit in Cyprus. Vasiliou spent 12 years within XM’s group, including five years at Trading.com, where he served first as chief risk officer before becoming chief executive.He previously spent seven years at XM, moving from the dealing desk into risk management.Vasiliou replaces Costas Michael, the founding CEO who stepped down earlier this year and remains a board adviser. The appointment comes as Revolut expands regulated crypto services under MiCA.Its Cyprus unit was among the early recipients of a CySEC Crypto Asset Service Provider licence. Vasiliou’s risk background adds to Revolut’s focus on compliance as European crypto supervision develops.