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What are American Depositary Receipts?

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

ADRs benefits

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.

At the same time, they possess drawbacks such as potential higher cost, double taxation (local and potentially foreign) and lack of voting rights.

To learn more about ADR fees and how they are charged, read this FAQ in our Help Centre.