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What are American Depositary Receipts (ADRs) and pass-through fees?

American Depositary Receipts (ADRs) are a negotiable certificate issued by a US depositary bank representing a specified number of shares‌ — ‌usually one share‌ — ‌of a foreign company's stock. ADRs trade on US stock markets as any domestic shares would.

ADRs offer investors a way to purchase stock in overseas companies that wouldn't otherwise be available, as well as giving non-US companies easier access to the US stock markets.

ADRs are normally subject to periodic service pass-through fees to cover custodial services costs. The Depository Trust Company (DTC) collects these fees from its participant brokers, including our third-party broker, who charges these fees to you.

ADR pass-through fees generally range from $0.01 to $0.5 per share. ADR fees are normally charged once per year, but this depends on the security. The ADR fee may be deducted from any dividend paid or as a separate fee showing on your account statement and annual costs and charges disclosure.