eToro UK Profit Jumps 144% as Trading Activity Rebounds in 2024

eToro UK doubled
its profit last year as trading activity picked up sharply in the final
quarter, driven by renewed interest in cryptocurrency markets and
heightened political developments that brought retail investors back to the
platform.

The fintech
reported net profit of $6.0 million for 2024, up from $2.5 million
a year earlier, according to financial statements filed with Companies
House. Revenue climbed 41% to $177.7 million from $125.7 million in 2023.

“2024
opened with the strongest start for eToro since 2021, driven by renewed
optimism amongst retail investors,” the company said in its business
overview. “Trading activity dipped mid-year due to macro-economic
uncertainty, however momentum returned decisively in Q4, boosted by political
developments and a strong crypto bull run.”

eToro UK’s Revenue Growth
Outpaces Expense Increase

Trading
commissions, the company’s largest revenue source, rose 38% to $145.9 million
in 2024 from $106.0 million the prior year. The growth came with
higher costs, however, as trading expenses more than doubled to $9.9
million from $4.3 million. Other commissions, which include fees
from marketing services and currency conversion charges, jumped 77% to
$24.0 million.

Administrative
and operating expenses climbed 38% to $171.3 million from $124.3 million. The
bulk of that figure consisted of intercompany fees paid to related
entities within the eToro group, which totaled $141.8 million, up from $97.7
million in 2023. Staff costs reached $9.0 million, compared with $7.9
million the previous year.

In March 2025,
two months before its
IPO, eToro released full-year results for the entire group, showing that profits
had increased thirteenfold and that cryptocurrency accounted for 38% of
commission income. However, the report did not provide a breakdown of
revenue by the fintech’s individual subsidiaries.

Key Financial Metrics 2024,
eToro UK

Balance Sheet
Strengthens Amid Market Growth

eToro
UK’s financial position improved substantially over the year.
Cash and cash equivalents more than doubled to $53.2 million from $25.0
million, while total assets grew to $79.8 million from $68.1 million. The
company’s equity base expanded to $47.8 million from $41.3 million,
reflecting both the profit generated during the year and ongoing
share-based compensation programs.

Amounts due
to related parties increased to $25.8 million from $21.4 million, while
receivables from related entities fell sharply to $126,494 from $27.2
million as the company settled intercompany balances.

The
firm held $472.1 million in client money as of Dec. 31, up from
$320.5 million a year earlier, with most of those funds placed with banks
including JPMorgan, J Safra, and BlackRock. Client custody assets under
the company’s fiduciary care totaled $1.77 billion, largely held
through eToro Europe Ltd and Interactive Brokers.

eToro UK
operates through execution arrangements with eToro Europe Ltd,
a Cyprus-based affiliate regulated by the Cyprus Securities and Exchange
Commission, which acts as the primary execution venue for client trades.
The UK company serves as prime custodian for clients holding real equity
positions.

Recent Platform
Developments

eToro has rolled out several
product updates over the past two months despite trading near historical lows
on Nasdaq since its May listing (NASDAQ: ETOR). The publicly
traded fintech has focused on expanding services across multiple jurisdictions
to attract new users.

In late September, the
company launched cryptocurrency staking for US customers, allowing them to
earn monthly rewards on Ethereum, Cardano, and Solana holdings.

Around the same time, eToro
partnered with Lean Technologies to enable instant
bank transfers in United Arab Emirates dirhams. The integration allows UAE
users to link their local bank accounts directly to their eToro accounts,
processing deposits within seconds without requiring users to leave the app or
manually enter payment details.

About a two weeks earlier, eToro
Europe Ltd received regulatory approval to offer crypto asset services directly
in Germany under the Markets in Crypto-Assets Regulation (MiCA). Following
this approval, all crypto trading for German clients now processes through
eToro EU, replacing the previous arrangement that used DLT Finance as an
intermediary for trading services on the platform.