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Trading ADRs on NYSE? (beginner question)

  • 11-01-2010 7:31pm
    #1
    pog it
    Registered Users, Registered Users 2 Posts: 2,912 ✭✭✭


    Hope somebody can help me. I want to buy into foreign stocks that are trading on NYSE but as ADRs and while I understand the concept of an ADR I am wondering will trading them function in same way as trading a direct stock listed on NYSE?

    Also... would there be any difference between trading on these with TD Waterhouse, or say with an American online discount execution only broker? Apart from the base transaction fee to buy and sell, it there any difference between after trade levies/duty/tax etc.?

    Thanks for any help.


Comments

  • #2
    pirelli
    Registered Users, Registered Users 2 Posts: 2,876 ✭✭✭pirelli


    pog it wrote: »
    Hope somebody can help me. I want to buy into foreign stocks that are trading on NYSE but as ADRs and while I understand the concept of an ADR I am wondering will trading them function in same way as trading a direct stock listed on NYSE?

    Also... would there be any difference between trading on these with TD Waterhouse, or say with an American online discount execution only broker? Apart from the base transaction fee to buy and sell, it there any difference between after trade levies/duty/tax etc.?

    Thanks for any help.

    They trade the same as far as I am aware and i have traded plenty of them as i trade china alot. They are the same as american shares as far as the punter is concerned.


    I do not know about highly technical trading outside of a brokerage or direct from the exchange the technicals would be slightly different but essentially they cannot be anything you can profit from otherwise we would all know about it.


  • #3
    pog it
    Registered Users, Registered Users 2 Posts: 2,912 ✭✭✭pog it


    Ah great thanks for letting me know that. Do you know off hand if Interactive Brokers or Zecco definitely allow you to trade ADRs? I read that IB require you to say you have executed 100 trades before you can open an account with them... what do you think? Would a novice trader be able to use their platform?
    I've heard that frequent traders and professional investors tend to use them. I can always add a few zeros to my trade history when I sign up but obviously I don't want to be out of my depth then.

    Am waiting for email back from Zecco.


  • #4
    strmin
    Registered Users, Registered Users 2 Posts: 315 ✭✭strmin


    I trade ADRs with IB no problem.


  • #5
    pog it
    Registered Users, Registered Users 2 Posts: 2,912 ✭✭✭pog it


    strmin wrote: »
    I trade ADRs with IB no problem.

    Thanks Strmin. Still haven't had reply from them or zecco. What do they charge? Is it a percentage of what you invest, or is it pay per transaction as you would for a non ADR stock?

    Also so you think the platform will be okay to use? I see they have online 24 hour customer service, but I'm just apprehensive after seeing they want you to have 100 trades experience before you join them.


  • #6
    strmin
    Registered Users, Registered Users 2 Posts: 315 ✭✭strmin


    ADR stock is no different than any other.

    IB platform is very basic if you don't subscribe to additional services/feeds, but I just love $1 trades.I've never contacted customer support and that's a good thing.
    About 100 trades experience,well, nobody will ever check it.


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  • #7
    woodseb
    Registered Users, Registered Users 2 Posts: 876 ✭✭✭woodseb


    strmin wrote: »
    ADR stock is no different than any other.

    there are some differences worth noting though such as how certain corporate actions are treated ie if the ADR you hold gets an all share takeover offer, you may get a cash equivalent instead

    also some ADRs may not trade directly in line with the ord line due to restrictions in the number of shares available and fungibility issues


  • #8
    pirelli
    Registered Users, Registered Users 2 Posts: 2,876 ✭✭✭pirelli


    pog it wrote: »
    Thanks Strmin. Still haven't had reply from them or zecco. What do they charge? Is it a percentage of what you invest, or is it pay per transaction as you would for a non ADR stock?

    Also so you think the platform will be okay to use? I see they have online 24 hour customer service, but I'm just apprehensive after seeing they want you to have 100 trades experience before you join them.

    yes you definetly can with zecco or any other us broker & ADRS are treated the same. Anything on the NYSE NASDAQ AMEX OTC OTC BB PINKS* exchanges you can trade with zecco.

    * It wont trade foreign pinks or rather there might be a fee which is fustrating but as a broker goes its as cheap it gets apart from sogo but ADRS are fine .


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