Instruction of ADR conversions-FUTU Help Center (2024)

FAQs

How much does ADR conversion cost? ›

What is the fee for ADR conversion？ Fee schedule for the conversion per stock: 700 USD handling fee per time + 5 USD conversion fee per lot/time (1 lot = 100 ADS, less than 1 lot will be rounded up to 1 lot).

ADRs may be listed on a major exchange such as the New York Stock Exchange or may be traded over the counter (OTC). Those that are listed can be traded, settled, and held as if they were ordinary shares of US-based companies.

ADRs are just like stocks. This means they trade on a stock exchange or over the counter, making them fairly easy to access and trade. Investors can also easily track their performance by reviewing market data. Purchasing ADRs is easy because they're available directly through American brokers.

American Depositary Receipts (ADRs)

ADRs can trade in the U.S. both on national exchanges and in the over-the-counter (OTC) market, are listed in U.S. dollars, and generally represent a number of non-U.S. shares to one ADR.

The cost for Judicial Arbitration is $150, to be shared by the parties. If the parties choose a private arbitrator, they will be required to pay the arbitrator's market rate.

Some banks require investors who hold ADRs to pay periodic services fees (sometimes called custody fees), which typically run between $0.01 to $0.03 per share.

Unfortunately, these fees can no longer be deducted. These fees are deducted from the dividends received. The ADR fees allow one to buy foreign stocks with US dollars and to receive dividends in US dollars. They are an investment expense, not an investment advisor fee.

The institutions that issue ADRs may charge quarterly or annual 'ADR Pass-Through Fees' which consist of custody fees and fees for processing dividends and corporate actions. These fees can add to your investment costs. Liquidity for some ADRs may be low, which may affect bid/ask spreads.

An American Depository Receipt (ADR) is a financial instrument that is traded like a share but consists of ordinary shares of a foreign company. Customers holding supported ADRs (as listed below) can now use CapTrader/IB's Voluntary Election Tool to convert ADRs into the corresponding ordinary shares.

What are the benefits of ADRs? ADRs offer benefits both for investors and for the company itself. Through ADRs, foreign companies can enter the largest investment market in the world. This is particularly useful for large companies in foreign countries whose capital markets are smaller or less developed.

Do you get dividends from ADRs? ›

ADRs pay dividends in US dollars and trade like regular shares of stock. Companies can now purchase stocks of foreign companies in bulk and reissue them on the US market. ADRs are listed on the NYSE, NASDAQ, AMEX and can be sold over-the-counter.

The price of an ADR corresponds to the price of the foreign stock in its home market, adjusted to the ratio of the ADRs to foreign company shares.

Level I ADR holders may (i) sell their ADRs in over-the-counter trading following delisting; or (ii) surrender their ADRs to Citibank in exchange for the underlying shares. Does delisting from the NYSE impact the voting and dividend rights of ADR holders? The delisting does not impact voting and dividend rights.

How to use the ADR in trading. The ADR indicators are used in the same way in any timeframe or trading instrument: As soon as the price touches the ADR level, close the position and monitor the market. The level can be broken, and then the price will continue to move.

We focus on the case of ADRs traded in the U.S., as in some cases, the home markets of these ADRs prohibit short selling. We find that U.S. short sellers more heavily trade ADRs from markets where short selling is prohibited than from markets where short selling is allowed.

ADR fees rate range between 1 – 5 cents per share, different ADRs will have different charge rate and bill date, if corresponding stock issues dividend during the year, ADR fees will be deducted from the dividend amount in the name of dividend fee, if corresponding stock issues no dividend, ADR fees should be paid ...

Yes, there are costs involved, but they can be significantly less than the legal costs associated with taking a dispute to court. Some ADR proceedings are notably less formal, such as mediation where the parties need to work together to find a solution.

ADR Fees are custody fees, sometimes referred to as Depositary Services Fees, to compensate the depositary banks for inventorying the non-U.S. shares and performing registration, compliance, dividend payment, communication, and record keeping services.