Baziloo Academy Level: Beginner ⏱ 4-minute read

PEA and securities accounts: two ways to invest in the stock market

By The Baziloo Editorial Team ·Published on 18 July 2026 at 1.03 pm

A PEA and a securities account are two types of investment vehicle that allow you to buy shares and funds on the stock market. They operate differently, particularly in terms of tax treatment. Understanding the differences between them will help you choose the right option for your financial plans.

🎯 What you’ll learn

Distinguishing between a PEA and a securities account, and their respective uses
Understanding how taxation works within each budget
Identify the limitations and access conditions for each device
Knowing when to use one rather than the other

What are the PEA and a securities account?

The PEA (Share Savings Plan) and the securities account are two ‘envelopes’: bank accounts into which you can deposit money to buy shares (ownership stakes in companies) and funds (portfolios of shares managed by professionals).

A securities account works just like a standard bank account. You deposit money into it, buy securities (shares, funds), and can sell them whenever you like. There are no deposit limits or minimum holding periods.

The PEA, on the other hand, has strict rules: you must leave your money in it for at least five years to benefit from its tax advantages. You can only invest in certain types of funds and shares (mainly European). There is also a deposit limit: 150 000 € per person.

How does the tax system work?

That’s the big difference. When you make money from your investments (this is known as a ‘capital gain’), you have to pay tax. But the amount depends on the tax scheme you use.

With a share account, you pay tax each year on your capital gains. If you make a profit of 1 000 € when selling a share, you must declare this gain to the tax authorities. The rate depends on your personal circumstances, but it averages around 30 % (income tax + social security contributions).

With a PEA, it’s much more advantageous. If you keep your money in the account for at least five years, you pay no tax on your gains. It’s free. Even if you make a profit of 10 000 €, you don’t have to pay anything. That’s the main tax advantage of the PEA.

When should you choose one or the other?

A PEA is ideal if you have a long-term plan (at least 5 years) and want to take advantage of the tax benefits. For example: you are 30 years old and plan to invest until you are 40. A PEA is perfect.

A securities account offers greater flexibility. Use it if you think you might need your money within five years, or if you want to invest more than 150 000 €. There are no restrictions. It’s also the ideal way to try things out and learn without any pressure.

Many beginners start with a securities account to get to grips with how it works, then open a PEA once they are ready to invest for the long term.

The limits you need to be aware of

The PEA has certain restrictions: you can only invest in European funds or shares from certain countries. You cannot invest in just any security. Furthermore, if you withdraw your money before five years have elapsed, you lose the tax benefit.

A securities account, on the other hand, does not have these limits, but you pay more tax. That’s the price of freedom. Each option has its pros and cons: it’s up to you to choose based on your circumstances and your plans.

📖 Definitions

Envelope: A banking vehicle that brings your investments together. It has its own operating and tax rules.
PEA (Share Savings Plan): A favourable tax regime for investing in the stock market, provided the money is held for at least five years. Limit of 150 000 € per person.
Securities account: A standard, flexible account for buying shares and funds. No deposit limits, but less favourable tax treatment.
Gains (or capital gains): The money you make when you sell a security for more than you paid for it. Example: you buy a share at 100 €, sell it for 120 €; your profit is 20 €.
Taxation: The set of rules that determine the tax you are required to pay on your investment gains.

💡 A practical example

If you invest 10 000 € and earn 2 000 € over 6 years, with a securities account you’ll pay around 600 € in tax (30 %). With a PEA, you’ll pay 0 € (as you’ve held the money for more than 5 years). You’ll therefore keep 2 000 € instead of 1 400 €.

⚠️ Risks you need to be aware of

A PEA ties up your money for 5 years: if you withdraw it before then, you lose the tax benefit
The PEA restricts the range of possible investments: no direct investments in US or Asian shares
A share account results in higher tax bills, especially if your gains are substantial
In both cases, you risk losing money if the markets fall: these are not guaranteed investments

✅ Key points to remember

The PEA offers very favourable tax treatment (tax 0 %) if you hold the money for at least five years
A securities account offers greater flexibility: there are no time or amount limits, but the tax treatment is less favourable
Choose the PEA for a long-term investment plan, and a securities account for greater freedom and flexibility
You can have both: they complement each other rather than being at odds with one another

🧠 Test your knowledge

1. What is the main tax benefit of a PEA after five years?

2. You want to withdraw your money from the PEA after three years. What happens then?

Fancy taking it a step further?

Analysise this security in detail on Baziloo — B-Score, risk metrics, price history — and track it in your portfolio.

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Sources

Public Services — The Share Savings Plan (PEA) — service-public.fr
AMF — Investor Zone (Autorité des marchés financiers) — amf-france.org