Customers completed fewer crypto trades on eToro than a year earlier and invested less in each one. Across the platform, 18% more customers met the company’s criteria for a funded account.
eToro customers made 2 million crypto trades in October, down 62% from a year earlier, the company said in its November 10 results release. Across equities, commodities and currencies, customers made 22% fewer trades.
How much did customers invest per trade in October?
Customers invested an average of $228 per crypto trade, compared with $184 per trade in equities, commodities and currencies. For each group, eToro divides the total amount invested during the month by the number of trades executed.
| Market | Trades | Year-over-year change in trades | Year-over-year change in amount per trade |
|---|---|---|---|
| Crypto | 2 million | −62% | −29% |
| Equities, commodities and currencies | 48.2 million | −22% | −49% |
eToro counts an executed order when an investor opens a position and another when the investor closes it. Orders to copy another investor also qualify. eToro did not disclose how many individual customers traded crypto in October.
Funded accounts rose as customer assets fell
eToro counted 4.42 million funded accounts at the end of October, up from 4.39 million a month earlier. To qualify, a customer must pass identity and anti-money-laundering checks, activate the account, deposit money, make at least one trade and retain a positive balance. A customer who held cash and made no trades in October can still qualify.
Customers held $19.2 billion on the platform at the end of October, down 6% year over year. At the end of September, they held $20.8 billion, unchanged from a year earlier. eToro includes crypto, stocks, exchange-traded funds and cash in its assets under administration. It also counts assets held by partners that execute trades or provide custody for customers.
Customers transferred $1.1 billion through eToro Money in October, down 21% year over year. That figure combines deposits, withdrawals and money sent through an eToro Money IBAN to fund trades in a different currency. The company did not say how much withdrawals contributed to the decline in customer assets.
Third-quarter profit fell to $15 million
The earnings figures, also reported by Koin Bülteni, cover the three months ended September 30. eToro earned $15 million, down from $57 million a year earlier. The company cited weaker crypto trading as the main reason its net contribution fell from $215 million to $186 million.
To calculate net contribution, eToro subtracts the cost of cryptoasset revenue and margin interest expense from total revenue and income. Payroll and marketing expenses enter the calculation of net income later. Cryptoasset revenue fell from about $3.97 billion to $1.35 billion, while the associated cost fell from $3.89 billion to $1.29 billion. The company also recorded a $30.9 million net trading loss on crypto derivatives in the quarter.
CFO Meron Shani said crypto activity had recovered from the previous quarter, while net contribution from equities, commodities and currencies rose 21% year over year. The service that lets customers copy other investors had $2.4 billion in assets under management. The broader platform total also includes customers who hold cash.
eToro ended the quarter with $1.2 billion in cash, cash equivalents and short-term investments. The board authorized share repurchases of up to $250 million. The timing and size of purchases will depend on the share price, the company’s cash needs and legal requirements.
In its announcement on X, eToro named CEO Yoni Assia and Shani as the speakers. The company’s November 10 earnings webcast covers the results and new products.
