From Kiplinger........
Q. On my monthly statement from TD Ameritrade, I noticed a $6 "ADR service
fee" on 300 shares of Tata Motors. When I called TD Ameritrade, the
representative told me that charge was showing up on some foreign stocks
but
couldn't give a reason for it. In the future, will I pay a fee on any ADRs
I
own?
A. You won't have to pay a fee for all American depositary receipts, but
there's nothing you can do about the one TD Ameritrade is charging you.
ADRs, which represent shares of owner****p in a foreign company, trade in
the
U.S. in dollars. Some ADRs come with a contractual provision that allows
the
broker, in this case TD Ameritrade, to levy "depositary services fees."
The charges, commonly 2 cents per share, are intended to cover the cost of
coordinating overseas investments. For ADRs that include this provision,
the
broker can levy the charge at any time, but no more than once a year.
Your broker should be able to give you a list of ADRs with these fees.
They're most likely to be tacked on to companies based in developing
countries, where it's more expensive to operate.
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