how to invest from 1 euro – L’Express

how to invest from 1 euro – LExpress

The CAC 40 index settled above 8,000 points a few weeks ago, breaking its historic record. Good news for the 1.5 million new investors arriving on the Stock Exchange between 2019 and 2023, according to the Financial Markets Authority. This number is expected to continue to grow as the stock market is no longer just for wealthy savers. New platforms make it possible to invest very small sums in a selection of several thousand European and American stocks or exchange traded funds (ETFs) thanks to fractional investment.

This service is offered from 1 euro, notably by Trade Republic, Shares, Revolut, Lydia or Bitpanda. At eToro, it costs 10 dollars minimum. “Some of our clients only invest a few euros per week. Purchasing fractional shares opens the doors of the financial markets to savers who have never invested before,” estimates Vincent Grard, France director of Trade Republic, which has 4 million customers in Europe.

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On this platform, the client holds shares in due form, allowing them to receive any dividends paid by the company. Conversely, Bitpanda and Lydia sell derivative products reproducing the evolution of the security, and not the shares. The client is then exposed to the risk of bankruptcy of the issuer of the derivative product. You must therefore understand what you are buying before getting started. In most cases, these neobrokers do not charge fees, especially when it comes to regular investment plans, for example 5 euros per week or per month on a value. But here too, we must pay attention.

PEA still excluded

Another subtlety, it is not possible to buy fractions of shares in a stock savings plan (PEA), an envelope allowing the taxation of a portfolio to be optimized. The platforms only allow you to store your securities in a securities account, without tax advantages. “We need a change in regulations on this point, as has been the case since last year in the United Kingdom,” believes Benjamin Chemla, the co-founder of Shares, whose French platform was launched at the end of 2023.

All these brokers allow beginners to familiarize themselves with investing in the stock market. But it is not always possible to choose the limit price at which you wish to buy or sell. Conversely, traditional brokers and online banks allow you to refine the placement of stock market orders to optimize performance. An additional step, for more seasoned savers.