CTO — Brokerage Account (Regular) — What is it?
What is a CTO account (regular brokerage account)? How does it differ from IKE and IKZE? When is it worth having and how does taxation work?
What is a CTO account?
CTO is the colloquial name for a regular brokerage account — as opposed to accounts with tax benefits (IKE, IKZE). The abbreviation comes from English "Cash/Trading/Ordinary" account, although in Poland there's no official "CTO" name — investors use this term to distinguish it from retirement accounts.
How does a CTO account work?
You open it with any broker (XTB, Bossa, mBank, Interactive Brokers). You can buy and sell on it:
- Polish and foreign stocks
- ETFs
- Bonds
- Futures and options
- Other instruments available from the broker
No contribution limits — unlike IKE/IKZE, you can deposit any amount into CTO.
CTO vs IKE vs IKZE
| Feature | CTO | IKE | IKZE |
|---|---|---|---|
| Annual contribution limit | None | ~23,500 PLN | ~9,400 PLN |
| Tax on gains | 19% (Belka) | 0% (after age 60) | 10% (after age 65) |
| PIT deduction | No | No | Yes |
| Early withdrawal | Free | Possible (with tax) | Possible (with tax) |
| Available instruments | Full broker offering | Depends on broker | Depends on broker |
When is CTO needed?
- When you exceed IKE/IKZE limits and have surplus to invest
- When you need access to instruments unavailable on IKE/IKZE
- When you plan to withdraw funds before age 60
- When investing through foreign brokers (DEGIRO, Interactive Brokers)
Taxation on CTO
On CTO account you pay 19% Belka tax on:
- Gains from selling securities
- Dividends
- Interest from bonds
You settle independently in PIT-38 (by end of April of following year). Broker sends PIT-8C form with transaction summary.
How Freenance can help
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