PEA or Ordinary Securities Account (CTO): Which to Choose in 2026?
Investing in the stock market is an excellent way to grow your savings, but choosing the right investment vehicle can quickly become a headache, especially for beginners. In France, the Share Savings Plan (PEA) and the Ordinary Securities Account (CTO) are the two most common options for investing in stocks, but their characteristics, advantages, and constraints differ significantly. In 2026, with fiscal and regulatory changes, what is the best choice between PEA and CTO? This comprehensive guide will help you see clearly to guide your investment strategy.
The PEA: a favorable but restrictive tax framework
The PEA is a regulated savings product that allows investing in European stocks while benefiting from significant tax advantages. Since its creation, it has attracted investors thanks to an exemption from tax on capital gains and dividends, provided the plan is kept for at least 5 years. In 2026, these rules remain, with reduced taxation after 5 years: gains realized are exempt from income tax but remain subject to social contributions (17.2%).
The contribution ceiling is set at €150,000 for a classic PEA, which limits investment capacity. Moreover, the PEA only allows investment in eligible securities, mainly shares of European companies and certain funds meeting investment criteria. This restriction excludes, for example, non-European stocks or certain derivative products.
In terms of fees, banks and brokers generally apply annual management fees around 0.1% to 0.5%, in addition to brokerage fees. For example, with a popular online broker, brokerage fees can be 0.1% to 0.3% per order, with a minimum often around €1 to €3.