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What is an ADR fee?

U.S. investors can invest in foreign stocks through something called an American Depositary Receipt, or ADR.  These securities are issued by a U.S. bank that specializes in trading and represents shares of the foreign stock.  They trade on a U.S. exchange like a regular stock.  

There are additional administrative fees associated with owning ADRs as a cost of supporting the ADR program.  These charges are anywhere from .01 to .03 cents per share.  Typically these fees are deducted from any dividends that are given by the underlying company to you or as a separate pass through fee.  If a separate pass through fee is charged, you will see these fees in your monthly statement. More information around company ADR fees can usually be found on a companies website or their prospectus. 

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