An American Depository Receipt (ADR) lets you trade a non‑US company’s shares on a US exchange (e.g., Nio Inc, Polestar Automotive, Alibaba). An ADR’s depositary bank (e.g., Citi, BNY Mellon, JPMorgan) manages the programme. Some ADRs are also dual-listed on other exchanges like Gettex and Deutsche Börse Xetra.
What is an ADR Fee?
The ADR's depositary bank charges a servicing fee for providing the non-US company's shares. This fee applies to all listings of the ADR, including dual-listings on non-US exchanges.
When are ADR Fees charged?
When the ADR depositary bank announces it’s going to collect fees for a given ADR, we’ll calculate your charge based on the number of ADR shares you held at market close on the record date announced for that fee.
Which accounts are liable for the ADR Fee?
Stocks and Shares ISA and Invest accounts are liable for the ADR fees.
What if I own fractional shares?
You’ll be charged pro rata. For example, if the fee is $0.03 per ADR and you hold 0.40 ADRs, your fee is $0.012, which we round down to the nearest penny in your account currency.
What happens with lent shares?
Lent shares are not liable for ADR fees. We calculate the fee based on the number of shares that have not been lent as of the market close on the record date.
Why do I get charged per share?
The depositary bank sets its fee per ADR in its programme’s terms. We reflect the official terms proportionately to the shares you held on the record date.
What is the difference between record date and charge date?
- Record date: The date on which any shares held are liable for the ADR fee.
- Charge date: The date on which your account is charged.
💡 Example
- Rate announced → $0.03 per ADR.
- Record date → You hold 17.4 shares.
- Charge date → 17.4 × $0.03 = $0.522 → converted and rounded down to the nearest penny (e.g., £0.39).
What happens if I have insufficient free cash in my account?
If the total fee exceeds your free cash, your account is sent into a negative balance. The negative balance will be cleared automatically when sufficient free cash is available in your account.