Are ADR fees tax deductible?

ADR fees is not avoidable. In most cases, ADR fees may not tax deductible as investment expenses. If ADR fees is charged by the custodian to ADR holders, the brokerage will pass on this fee directly to a client’s account. If an ADR does not pay a dividend then this fee will deducted from the client’s cash account.

How much does a depositary bank charge for an ADR?

The depositary bank that holds the underlying stock may charge a fee, known as a custody fee, to cover the cost of creating and issuing an ADR. This fee will be outlined in the ADR prospectus and typically ranges from one to three cents per share. The fee will be either deducted from dividends or passed on to the investor's brokerage firm.

How much does it cost to invest in an ADR?

Investing in an ADR may incur additional fees that are not charged for domestic stocks. The depositary bank that holds the underlying stock may charge a fee, known as a custody fee, to cover the cost of creating and issuing an ADR. This fee will be outlined in the ADR prospectus and typically ranges from one to three cents per share.