PEA or brokerage account: the differences

Caps, eligible securities, taxation, withdrawals: what sets the two wrappers apart.

The key differences

The PEA (Plan d'Épargne en Actions, French equity savings plan) and the standard brokerage account (CTO) both hold securities. They differ mainly in eligibility rules, caps and taxation.

PEA and standard brokerage account compared
CriterionPEACTO
Contribution capYes, set by regulationNo
Number per personOne PEA per personSeveral possible
Eligible securitiesMainly EU/EEA companies and eligible fundsVery wide (shares worldwide, bonds, funds…)
TaxationFavourable treatment after a minimum holding period; social contributions still dueIncome and gains taxed in the year they are received or realised
WithdrawalsConsequences depend on the age of the planFree, with no effect on the account

Two complementary wrappers

The two wrappers are not mutually exclusive: one person can hold a PEA and one or more CTOs. The choice depends on the securities targeted, the investment horizon and each person's tax situation — PortefeuilleZen makes no recommendation on this.

Key takeaway

The same kind of product (an ETF, for example) may exist in a PEA-eligible version and a non-eligible version: eligibility depends on the exact instrument, not on the index it tracks.

Things to watch

Attention

Caps, holding periods and rates are set by regulation and may change. Always check the rules in force on the official pages cited at the bottom of this guide.