French savers have reason to celebrate as German online broker Trade Republic brings its highly anticipated free PEA (Plan d’Epargne en Actions) to the market. This game-changing offering not only provides a French IBAN current account, but also allows users to take advantage of the PEA’s favorable tax treatment while diversifying their investments. With Trade Republic, clients can effectively combat inflation and confidently plan for their financial future.
Trade Republic Expands Its French Footprint
Trade Republic, a Berlin-based online broker operating in France since 2021, has rapidly gained popularity among European investors. Boasting over 8 million clients and managing approximately €100 billion in assets across Europe, the platform has attracted more than a million French users to date.
Millions of people already trust Trade Republic. What are you waiting for?
– Trade Republic
In addition to a wide array of over 10,000 assets, including 50 cryptocurrencies, Trade Republic offers a French IBAN current account. This practical feature not only simplifies everyday expenses and rent payments but also provides an interest rate equal to that of the central bank (currently 3%). By simply depositing funds into the account, clients can earn passive income and combat the effects of inflation on their purchasing power.
PEA Now Available at No Cost
The PEA (Plan d’Epargne en Actions) is a French tax-advantaged investment vehicle designed for long-term savings. While cryptocurrency enthusiasts may be less familiar with this instrument, the PEA is an attractive option for patient investors, as its benefits kick in after a 5-year holding period.
- After 5 years, PEA holders enjoy a significant tax advantage: exemption from income tax
- Instead of paying a 30% flat tax, PEA investors are only subject to 17.2% social security contributions
To benefit from these advantages, investors must hold European stocks, ETFs, and PEA-eligible ETFs (such as those tracking the S&P 500). The PEA has a contribution limit of €150,000, although this cap can be exceeded through investment gains. Investors under 25 can also open a PEA Jeune (Young PEA) to start saving early.
As of January 9th, Trade Republic clients can access the PEA with over 2,000 stocks and 150 ETFs, all without paying brokerage fees. The platform also simplifies tax processes by withholding taxes at the source.
Democratizing Investment in France
By offering a free PEA alongside its current account and other investment products, Trade Republic reaffirms its commitment to making investing accessible to all in France. The platform empowers clients to focus on their investment strategy while handling the rest.
Dollar Cost Averaging (DCA)
A strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals.
Trade Republic’s PEA is an ideal solution for investors seeking a simple, advantageous, and efficient way to grow their savings. The combination of a current account with central bank interest rates and a fee-free PEA makes Trade Republic a one-stop-shop for French investors looking to secure their financial future.
Key Takeaways
- Trade Republic launches a free PEA savings plan in France
- PEA offers significant tax advantages after a 5-year holding period
- Trade Republic’s current account earns central bank interest rates
- The platform aims to democratize investing in France
As Trade Republic continues to expand its offerings in France, the launch of its fee-free PEA marks a significant milestone in the company’s mission to make investing accessible and advantageous for all. By providing a comprehensive range of investment products and services, Trade Republic is well-positioned to revolutionize the French savings landscape and help investors secure their financial future.