What are the differences between a CTO and a PEA?

The PEA (Share Savings Plan) and the CTO (ordinary securities account) are two complementary envelopes.

🔹 CTO:

No payment ceiling.

Access to all global values.

Immediate taxation (dividends, capital gains).

🔹 PEA:

Ceiling of €150,000 for payments.

Investments limited to eligible European securities.

Tax advantage after 5 years (exemption from income tax, excluding social contributions).

💡 The savvy investor often combines both:

The PEA for long-term investment in European equities with a tax advantage.

The CTO to diversify towards global markets, take advantage of thematic ETFs or actively manage its portfolio.

Concrete example:

An investor can house his French and European shares in his PEA, and his American and Asian shares in his CTO. It thus benefits from the best of both worlds.