Thanks to its great flexibility, the securities account is a preferred tool for investors wishing to diversify their assets, access international assets, or invest in financial products not eligible for the PEA.
What is a securities account?
A securities account is an account designed to hold financial instruments such as stocks, bonds, investment funds, or ETFs.
It is generally associated with a cash account that allows for deposits, purchases, sales, and the collection of income generated by investments.
Unlike the Equity Savings Plan (PEA), the securities account does not benefit from a specific tax regime but offers much greater investment freedom.
The securities account in figures
The ordinary securities account (CTO) allows for free investment in stocks, bonds, ETFs, OPCVMs, and many other financial instruments, with no deposit limit. At the end of 2025, the 7.3 million PEAs held by French individuals included 5.64 million associated securities accounts, illustrating the importance of this wrapper for equity investment. The deposit limit for a CTO is unlimited, unlike the PEA which is capped at €150,000. Securities accounts also allow investment in international markets and access to several thousand listed securities worldwide.
How does a securities account work?
The operation of a securities account is relatively simple.
The investor deposits cash into their cash account and then uses it to purchase the financial assets of their choice.
They can then:
- buy securities;
- sell their investments;
- receive dividends;
- cash in bond coupons;
- make arbitrage trades at any time.
A securities account can be opened with:
- a bank;
- an online broker;
- a specialized financial institution.
Who can open a securities account?
Any adult individual can open a securities account.
Legal entities (companies, associations, foundations, etc.) can also hold a securities account.
Unlike the PEA, it is possible to hold several securities accounts with different institutions.
What investments can be held in a securities account?
The main advantage of the securities account lies in the diversity of accessible investments.
French and international stocks
The securities account allows investment in listed companies worldwide.
It is thus possible to buy shares:
- French;
- European;
- American;
- Canadian;
- Japanese;
- Asian;
- emerging.
Bonds
Investors can acquire bonds issued by:
- states;
- companies;
- local authorities.
Bonds generally allow for the receipt of regular income in the form of coupons.
ETFs
ETFs (Exchange Traded Funds) offer exposure to numerous indices, sectors, or geographical areas.
They constitute a particularly popular diversification tool for investors.
OPCVMs and investment funds
The securities account also allows investment in funds managed by asset management companies.
These vehicles can be specialized by sector, geographical area, or investment strategy.
Structured products
Depending on the institutions, certain structured products can be held in a securities account.
Other financial instruments
The securities account can also accommodate, depending on the financial intermediaries:
- certificates;
- warrants;
- convertible bonds;
- certain derivative products.
Advantages of the securities account
The securities account offers numerous advantages for investors.
Total investment freedom
Unlike the PEA, there are no limitations regarding accessible markets.
The investor can build a global portfolio.
No deposit limit
The securities account has no deposit limit.
It is therefore possible to invest any desired amounts.
Great Flexibility
Withdrawals are possible at any time without leading to the closure of the account.
Arbitrage trades can be carried out freely.
A solution adapted for diversification
The securities account allows combining numerous asset classes within the same wrapper.
What is the taxation of a securities account?
Income generated by a securities account is subject to the taxation applicable to investment income.
Dividends
Dividends received are taxable according to the current tax regime.
Capital gains
Gains realized from the sale of securities are also subject to taxation.
The single flat-rate levy (PFU)
By default, income and capital gains are subject to the single flat-rate levy (PFU), also known as “flat tax”.
Under certain conditions, the taxpayer can opt for taxation according to the progressive income tax scale when this option is more advantageous.
Securities account or PEA: what are the differences?
The securities account and the PEA serve complementary objectives.
Advantages of the securities account
- access to international markets;
- no deposit limit;
- wide diversity of investment vehicles;
- possibility of holding multiple accounts.
Advantages of the PEA
- advantageous taxation after five years;
- exemption from capital gains tax (excluding social security contributions) under certain conditions;
- a tool particularly suited for investments in European equities.
In many cases, investors use both a PEA and a securities account simultaneously to benefit from the advantages of each.
What are the risks of a securities account?
Like any financial investment, the securities account carries several risks.
The risk of capital loss
The value of securities can fluctuate upwards or downwards.
The investor may recover an amount lower than their initial investment.
Market risk
Performance depends on the evolution of financial markets, the economy, and the companies held.
Exchange rate risk
Investments made in foreign currencies can be affected by exchange rate fluctuations.
How to integrate a securities account into a wealth management strategy?
The securities account can meet different objectives.
Grow your wealth
Financial markets offer interesting potential for appreciation over the long term.
Generate additional income
Dividends and bond coupons can help supplement the investor’s income.
Diversify your investments
The securities account allows investment in various sectors, geographical areas, and asset classes.
Prepare for transmission
In certain situations, the securities account can be integrated into a global wealth transmission strategy.
FAQ on Securities Accounts
What is a securities account?
The ordinary securities account (CTO) is an investment wrapper that allows for holding a wide variety of securities such as stocks, bonds, ETFs, OPCVMs, or certain structured products. It is not subject to any deposit limit.
What is the difference between a securities account and a PEA?
The securities account offers much broader investment freedom than the PEA, particularly in international markets. However, it does not benefit from the advantageous taxation of the PEA, and gains are taxed according to current rules.
Can one invest internationally with a securities account?
Yes. The securities account allows investment in most global financial markets and provides access to European, American, and Asian companies, as well as numerous international funds.
How is income from a securities account taxed?
Dividends, interest, and capital gains realized on a securities account are generally subject to the taxation applicable to capital income, notably the single flat-rate levy (PFU) or, optionally, the progressive income tax scale when it is more advantageous.
Is the securities account suitable for all investors?
The securities account is suitable for both beginner and experienced investors wishing to diversify their investments. However, the choice of investment vehicles must be adapted to the objectives, investment horizon, and risk level of each saver.
