What Is the Compte-Titres Ordinaire?
The compte-titres ordinaire (CTO), or standard brokerage account, is the most flexible investment wrapper for stock market investing in France. Unlike the PEA (Plan d'Epargne en Actions, France's tax-advantaged equity savings plan), the CTO imposes no restrictions on eligible securities, contribution limits, or withdrawal conditions. You can hold shares from anywhere in the world, bonds, international ETFs, derivatives, and more.
The CTO is offered by all banks and online brokers. There is no limit on the number of CTOs you can hold, nor any contribution cap. It is a completely unrestricted wrapper.
How the CTO Works
Opening a CTO is quick and straightforward. Any adult (or a minor with parental consent) can open one. The CTO consists of two linked accounts:
- A cash account that receives funds (deposits, dividends, sale proceeds)
- A securities account that holds the purchased financial instruments
Stock market orders execute in real time during market hours. You can buy and sell freely, with no holding period requirement and no withdrawal penalty.
CTO Taxation: The Sensitive Point
Taxation is the main disadvantage of the CTO compared to the PEA. Gains (capital gains and dividends) are subject to the prelevement forfaitaire unique (PFU), France's flat tax of 30%, broken down as:
- 12.8% income tax
- 17.2% social contributions (prelevements sociaux)
Alternatively, you can opt for the progressive income tax scale (bareme progressif), which may be advantageous if your marginal tax bracket (TMI) is below 12.8%. In that case, you also benefit from a 40% allowance on dividends.
Worked example: on a capital gain of 10,000 euros realised on a CTO, you will pay 3,000 euros in levies under the PFU. The same gain on a PEA after 5 years would cost only 1,720 euros (17.2% social contributions). The difference is 1,280 euros in favour of the PEA.
When Should You Choose a CTO Over a PEA?
Despite its less favourable taxation, the CTO remains indispensable in several situations:
When your PEA is full: once you have reached the 150,000 euro contribution ceiling on the PEA, the CTO is the only option to continue investing in equities.
For non-European stocks: if you want to buy US stocks directly (Apple, Microsoft, Amazon) or US-listed ETFs (such as ultra-low-cost Vanguard funds), only the CTO allows this.
For non-PEA-eligible products: bonds, bond ETFs, commodities, international REITs, structured products, cryptocurrency ETPs -- all require a CTO.
For flexibility: unlike the PEA, withdrawals from a CTO carry no penalty and do not trigger closure. You maintain total liquidity at all times.
Brokerage Fee Comparison
Brokerage fees on a CTO vary significantly between providers:
- Trade Republic: 1 euro per order, regardless of size
- DEGIRO: approximately 1 to 3 euros per order on European exchanges
- Bourse Direct: from 0.99 euro per order up to 500 euros
- Interactive Brokers: tiered fees, very competitive for large orders
For an investor placing 2 orders per month of 500 euros each, the annual brokerage cost ranges from 24 euros (Trade Republic) to 120 euros or more at a traditional bank.
Optimal Strategy: PEA + CTO
The most effective strategy is to combine both wrappers. Use the PEA first for your equity ETF investments (MSCI World, S&P 500, Europe) to benefit from reduced taxation. Then complement with the CTO for:
- Direct US stocks you wish to hold
- Bond ETFs for the defensive portion of your portfolio
- Ultra-low-cost ETFs not available on PEA (e.g. Vanguard FTSE All-World at 0.07%)
Example allocation for a portfolio of 80,000 euros:
- PEA: 60,000 euros in MSCI World and S&P 500 ETFs (75%)
- CTO: 20,000 euros in bond ETFs and specific US stocks (25%)
This split maximises the tax advantage while providing full diversification.