The securities account is the most flexible vehicle: US equities, bonds, commodities, world ETFs, derivatives... No deposit limits, no geographical constraints. The natural complement to the PEA.
Understanding the mechanics to make the right wealth decisions.
Where the PEA is limited to Europe, the CTO allows investment everywhere in the world: US equities (Apple, Nvidia...), emerging markets, bonds, US REITs, etc.
Gains realised in a CTO are subject to the Flat Rate Tax (PFU) of 30% (12.8% income tax + 17.2% social levies). IR option possible if tax bracket < 11%.
Tax management of a CTO involves regular arbitrages: realising losses to offset gains, or planning gradual exits based on your tax bracket.
The PEA and CTO are not in opposition — they complement each other. Recommended strategy: maximise the PEA first (€150,000, 5-year wait for exemption) for European equities + synthetic world ETFs, then use the CTO for PEA-ineligible markets (physical S&P 500, US REITs, bonds) and for amounts exceeding the PEA ceiling.
Building a diversified portfolio across all global markets, complementary to your PEA.
CTO taxation is actively managed: timing of sales, loss offsetting, donation strategy and inheritance planning.