Given the French interest in the PEA, ProRealTime, known for its cutting-edge technical analysis software and its stock brokerage services, now offers a PEA tailored to meet the needs of French investors looking to optimize their tax situation.
In this article, we examine ProRealTime’s PEA offering, exploring its features, pricing, advantages and drawbacks. We also provide our view on the ProRealTime PEA. Finally, we guide you through the steps to open a PEA with ProRealTime and invest in the stock market with this wrapper to optimize your investments.
What are the features of the ProRealTime PEA?
The ProRealTime PEA offering, provided in partnership with Interactive Brokers, stands out from other Equity Savings Plan options. It is one of the best PEAs for several reasons that we will detail below.
One of the innovative features of the ProRealTime PEA is the integration of an ordinary securities account (CTO) directly linked to the PEA. This configuration allows investors to access securities that are not eligible under the PEA’s tax framework, such as U.S. stocks, while maintaining a consolidated view and centralized management of their stock portfolio. This solution is ideal for those who want to diversify their portfolio without multiplying accounts and platforms.
The ProRealTime PEA also stands out for its wide selection of stocks and ETFs, allowing broader investment possibilities. With more than 4,000 eligible stocks available, this offering is arguably one of the broadest on the French market. Among the available stocks, investors can choose from 681 French stocks and 2,816 European stocks. Moreover, ProRealTime opens a rare doorway to international markets by enabling investment in 790 PEA-eligible stocks outside the euro area, a truly interesting option for investors seeking geographic diversification.
Regarding trackers, ProRealTime also offers a comprehensive lineup with 321 ETFs eligible for the PEA. These funds further diversify your stock portfolio while benefiting from the PEA’s tax advantages. With this combination of stocks, ETFs, and the possibility to access non-eligible securities via the associated CTO, ProRealTime provides a solution particularly suited for demanding investors who want to maximize the potential of their PEA.
Marc’s Tip:
Investors who already have a PEA with Interactive Brokers can also transfer it very easily to ProRealTime in just a few clicks. This particularly attractive solution allows you to benefit from the graphical tools and the ProRealTime interface while keeping Interactive Brokers’ brokerage infrastructure behind the PEA account.
What is the pricing of the ProRealTime PEA offer?
Investing in a PEA with ProRealTime also means benefiting from a competitive and transparent pricing policy. Brokerage fees are set at 0.06% of the transaction value, in addition to market-specific exchange fees.
For orders placed on Euronext Paris, Brussels, and Amsterdam, these exchange fees range from as little as €0.10 for ETFs to a maximum of €0.25 for stocks, with an intermediate rate of €0.19 for Blue Chip stocks. Note that minimum transaction fees apply (€2.95). Active investors on the German market will benefit from particularly favorable fees, with Frankfurt exchange fees set at €0.03 per transaction, for both stocks and ETFs. Note that minimum per-transaction fees also apply here (€2.95). Please note that brokerage fees are capped at 0.5% of the transaction value. Thus, on small orders (under €590), brokerage fees are below the €2.95 minimum.
Additionally, ProRealTime simplifies portfolio management by eliminating custody fees and transfer fees, offering an ideal solution for investors looking to limit costs without sacrificing service quality.
Example of ProRealTime PEA transaction costs
What are the advantages and disadvantages of the ProRealTime PEA? Our view
Like any offering, the ProRealTime PEA naturally has advantages and disadvantages, which we will examine in detail below.
What are the advantages of the ProRealTime PEA?
Among the advantages of ProRealTime’s PEA, what particularly impressed us is the broad diversification potential offered, an aspect often limited with a traditional PEA. With more than 4,000 stocks and over 300 ETFs available, this offering far exceeds the constraints usually associated with this tax wrapper. ProRealTime breaks traditional barriers by enabling access to a much wider range of investments.
Additionally, the integration of an ordinary securities account linked to the PEA provides a gateway to investments worldwide, while avoiding the hassles of managing multiple brokers. This combined solution meets the needs of ambitious investors, allowing them to diversify and expand their portfolio while benefiting from the PEA’s tax advantages.
What are the disadvantages of the ProRealTime PEA?
We found very few drawbacks to the ProRealTime PEA, given how rich and flexible this offering is. However, we believe the pricing could seem slightly complex to some users due to the different commission levels applied depending on markets and asset types. A simplification effort or a clearer presentation of the fees could further enhance the attractiveness of the ProRealTime PEA offering.
Who is the ProRealTime PEA for? Our view
The ProRealTime PEA targets a broad range of investors, whether active traders with short- and medium-term horizons or long-term investors. Indeed, a trader can make numerous back-and-forth moves among different stocks within their PEA without compromising the associated tax benefits.
This flexibility makes the ProRealTime PEA a suitable solution for those who want to patiently build a diversified portfolio as well as for those seeking to take advantage of short-term opportunities in the markets, provided they are willing to keep gains inside the PEA until the PEA reaches five years of holding to benefit from the tax advantages.
Our view on the ProRealTime PEA
The ProRealTime PEA stands out for its ability to bring together the best of three complementary worlds. It combines the excellence of brokerage thanks to the well-known Interactive Brokers offering, optimal tax optimization enabled by the PEA framework, and access to one of the market’s best trading and technical analysis platforms, ProRealTime.
This alliance of three well-known names in their fields offers a comprehensive and high-performance solution capable of meeting the expectations of the most discerning investors. Whether you are a fan of advanced technical analysis, an active trader, or an investor seeking diversification, the ProRealTime PEA represents a top-choice option.
One of the major advantages of the PEA remains, of course, its favorable tax treatment after five years of holding. And precisely on this tax aspect, clients using a ProRealTime PEA enjoy free access to FlashFiscal.
This service helps simplify and automate French tax declarations, a particularly appreciated feature for active investors. Another appealing benefit: FlashFiscal can also be used with other stockbrokers if you hold, for example, an ordinary securities account (CTO) in parallel.
How to open a PEA with ProRealTime?
Opening a PEA with ProRealTime is a simple and fast process that can be completed entirely online, but you can also request a callback from a advisor to assist you through the procedure.
To begin, go to the ProRealTime website and click the “Open my PEA account” button. Fill out the form with your personal information, such as your identity and your address.
Next, upload the required documents, such as an identity document and a proof of address. Once your file is approved, you simply need to sign your contract electronically to activate your account. Finally, make your first deposit to start investing directly from the ProRealTime platform.
Investors who already have a PEA with Interactive Brokers can also transfer it simply to ProRealTime in just a few clicks. This operation allows you to keep the Interactive Brokers infrastructure while taking advantage of the trading environment and the graphical tools offered by ProRealTime for its PEA.
All of our information is, by nature, generic. It does not take into account your personal situation and in no way constitutes personalized recommendations for making transactions, nor can it be considered financial investment advice or any encouragement to buy or sell financial instruments. The reader is solely responsible for using the information provided, with no entitlement to bring any claim against Cafedelabourse.com’s publisher. The publisher’s liability cannot be engaged in the event of an error, omission, or inappropriate investment.
