Invest in the stock market from €1 with tax benefits - Comprehensive Analysis
Trade Republic launches its PEA account on January 9th, offering an innovative solution for stock market investments with tax benefits. With over a million customers in France on their CTO, Trade Republic is revolutionizing stock savings through programmed investment plans and zero trading fees. Let's discover together the advantages and disadvantages of this new offer.
The PEA (Plan d'Épargne en Actions) is a French tax wrapper that allows investing in the stock market while benefiting from tax advantages. After 5 years, gains are no longer subject to income tax, and social contributions (17.2%) only apply on withdrawals, compared to a 30% rate on an ordinary stock account. It allows investments in European stocks and eligible ETFs such as S&P500, MSCI World, or CAC40.
The PEA account from Trade Republic combines accessibility and innovation with programmed investments (DCA - Dollar Cost Average) from €1 per month, allowing small and large investors to save regularly and automatically in stocks or ETFs.
Zero trading fees on programmed investments, no account opening fees, no account maintenance fees, no custody fees, no inactivity fees, and no closing fees. Only €1 for individual buy or sell orders with a very low spread.
A clear and intuitive interface, ideal for beginners and passive investors, unlike other more complex platforms. It allows a simplified approach to passive investing.
With a French IBAN, automatic tax withholding on dividends and pre-filled tax declarations greatly simplify tax management for French savers.
Trade Republic offers a complete ecosystem with a CTO account, an interest-bearing current account at the ECB rate, and a bank card with 1% cashback (up to €15 per month).
Due to French regulatory restrictions, it is not possible to buy fractional shares or ETFs. This feature could be available from June 2025.
There are no advanced tools for experienced investors, such as technical analysis tools or connections to external platforms like ProRealTime.
Due to high demand, customer service can sometimes be slow to respond. Trade Republic is working on improving this point to offer better support to its users.
Trade Republic operates through a French branch, offering a French IBAN and protection by the French deposit guarantee system. The PEA account is regulated by the AMF and ACPR, ensuring a fully secure framework for your investments. When opening the account, Trade Republic automatically deposits €1 to start the 5-year tax countdown for the PEA account.
Transferring a PEA account can take several weeks or even months. Here are the recommended steps to facilitate the process:
Warning: The transfer can take time, and some securities may not be compatible with Trade Republic. Make sure to check compatibility before initiating the transfer.
The PEA account from Trade Republic represents a unique opportunity to optimize your stock savings. With its reduced fees, intuitive interface, and programmed investment plans, it is suitable for both beginners and experienced investors. Although there are some disadvantages, such as the lack of fractional shares and limited tools for advanced investors, the advantages outweigh the drawbacks for many savers. Don't forget to use the referral link 'leFullStack' to get a welcome bonus!
Ilane Lopez
Founder / CTO
