FAQs - ADR Stocks
An American Depository Receipt (ADR) is a type of stock from non-U.S. companies that are held by a U.S. depository bank outside the United States.
Yes, but it’s limited to the select ADR shares. Please refer to the tradeable here
The standard fee of USD0.01 to USD0.03 per ADR share, subject to announcement, is applied. If there is an available USD cash balance, ADR fees will first be settled against that and it will remain outstanding until you converted sufficient USD cash balance.
You may perform currency conversion to pay for the ADR charges.
There are 5 types of fees associated with trading ADRs that you should be aware of.
- Depositary Receipt Fees:
Covers ADR program creation and maintenance costs. Fees differ among ADRs; investors should take note. The fee is deducted from your Cash Upfront account, recorded under cash movement and the monthly statement.
- Conversion Fees:
Don’t forget, ADRs are traded in USD so we will convert your Ringgit Malaysia accordingly. With Rakuten Trade, you have the option to trade in RM (and we’ll handle the conversion for you back end) or at time of sell, leave the funds in USD for use on your next trade.
- Custodian Fees:
Includes services like dividend payments, voting, and corporate actions. At Rakuten Trade, this fee is absorbed.
While not a direct fee, investors should be aware of tax charges related to dividend paying ADRs. A 15% withholding tax on dividends is applied to all foreign investors. We deduct it from your sales proceeds before transferring the balance into your trading account.
- Trading Commissions aka Brokerage:
Of course, like any investments made, a commission / brokerage is charged. With Rakuten Trade it’s the lowest in town from RM1 to RM100 depending on the transaction value regardless of whether it’s for MY, US or HK markets. If you’re trading in USD, brokerage fee is between USD1.88 to USD25.
We will send you a notification via email to top up available cash to cover the shortage of funds for the fee