What is an ADR?
An ADR is a way to invest in a non-U.S. company through the U.S. stock market. Banks issue these certificates to represent shares in foreign companies, allowing investors worldwide to buy and sell them in U.S. dollars on U.S. exchanges — just like regular stocks. Each ADR typically represents a set number of shares in the foreign company it tracks.
Example: If you want to invest in a European or Asian company through your InvestSky account, you may be doing so through an ADR.
Are there any fees?
Yes, a small fee may apply. The banks or agents that manage ADR programs charge a fee for their custodial services. This fee typically ranges between $0.01 and $0.03 per share, with a minimum charge of $0.01. It will appear on your account statement as "ADR fees" and is collected by our U.S. broker partner, DriveWealth, based on the rates set by the custodian bank.
This is not a brokerage partner fee - it is a standard industry charge that applies across all brokers for ADR investments.