Deposit interest fuels eToro revenue

Rising rates turned idle cash into a profit engine for eToro, which means the business became less dependent on users placing trades every day. In practice, once a customer wires money in and leaves some of it uninvested, eToro can earn yield on that cash while paying little or none of it back to the user. That made deposit balances more valuable, not just trading activity. By 2024, net interest income from users reached $197 million for the year, and $50 million in Q4 alone, about 20% of quarterly revenue.

• This changes what a good customer looks like. A user who deposits money, copies other traders, and keeps cash parked on platform can generate revenue even during slower trading periods. That is especially useful for eToro because trading revenue, particularly in crypto, can swing sharply with market sentiment.
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• The closest public comparison is Robinhood. In 2024, Robinhood generated $296 million of net interest revenue in Q4 and 35% of full year revenue from interest income, showing that retail broker profits increasingly depend on customer cash balances as much as commissions or spreads.
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• For eToro, the important distinction is geography and model. Unlike Robinhood, eToro cannot lean on U.S. payment for order flow at scale, so interest income fills part of that gap. It effectively monetizes the waiting room between deposit and trade, alongside spreads, FX fees, and CFD financing charges.
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Going forward, the brokers that win will be the ones that hold more customer cash for longer, not just the ones that drive the most trades. For eToro, that strengthens the value of copy trading and portfolio features that keep assets on platform, and it makes deposit growth and cash retention central to revenue durability.