Tiger Trade

1 ADR fee introduction

1) What are ADR (American Depositary Receipts) and ADR fees?

ADR (American Depository Receipts) refers to a negotiable certificate issued by a United States depositary bank to assist foreign securities to be traded in the United States. Usually represents publicly tradable shares of non-U.S. companies. According to the SEC, most enterprises registered in non-U.S. regions can only be listed in the United States by ADRs.

According to the SEC, an ADR depository bank may be authorized under the deposit agreement relating to the ADRs to charge a fee, called a custody fee or depository service fee, for the work it performs on the ADR. In 2008, the SEC approved the DTC (Depository Trust Company) to collect ADR fees from ADR holders non-periodically on behalf of the ADR depository banks.

2) How much are the ADR fees and how are they charged?

ADR fees usually range from 1 to 5 cents per share. The amount of fees and dates charged by each ADR will be different. For more details, please refer to each ADR prospectus.

Typically, ADR fees will be deducted from the gross dividend of ADR issues. However, if a number of ADRs do not pay periodic dividends, ADR fees will be collected from investors through their broker agents on a specific recording date. For ADR fees deducted with dividend distribution, the fees may be collected from investors' security accounts after the gross dividends are paid. Otherwise, the fees may be deducted directly from the gross dividends, and the investors receive the net dividend. For ADR fees not deducted with dividend distribution, the ADR custodian banks will update the notice, registration and collection dates of ADR fees before the deductions. Investors who hold ADR issues on the registration date will be deducted ADR fees on the collection date. Transactions after the registration date will not affect the current ADR fee collection.

Brokers usually will send customers a charge notice and freeze the ADR fees receivable in advance. The fees will be deducted from the account on actual collection date. Due to the settlement of funds and other reasons, the brokerages' deduction date may be different from the banks' collection date.
Warm Tip: Tiger Brokers will generally notify customers the upcoming deduction of ADR fees by mail, APP push and other means five trading days before the actual deduction. If the customers expect the risk control value or available cash in the account after deduction to be less than zero, the customers should transfer cash to the account or manually liquidated securities as soon as possible to avoid triggering margin close out.

3) How to check my ADR fees?

ADR fees are disclosed on the website of each ADR's custodian banks or the official website of the SEC.

Most ADRs in the market are managed by four custodian banks, namely Deutsche Bank, JPMorgan Chase Bank, Citibank and Bank of New York Mellon. Investors can log on to the websites of the above four banks and enter the stock code for ADR fees' inquires. Investors can also visit the EDGAR company search tool to view the specific ADR fees' descriptions. Please note that some ADRs have only one custodian bank. If relevant information is not found on the website of one bank, please try to log on to the other three banks or log on to EDGAR for inquiries.

At the same time, you can log in to the official website of Tiger Brokers: My Account-Statement-Fees, or log in to Tiger APP, select Trade and the account you want to query-More-Fund Details-Fee, and check for the fees deducted from your ADRs.

Notes:

(1) Singapore government will levy a GST (Goods and Services Tax) at a rate of 7% on the above "Commission", "Platform Fee" and “SEC Membership Fee" ,"Settlement Fee" and "Trading Activity Fee".
(2) When trading low-priced stocks (below USD 1), there is some risk due to the stock price volatility and the possibility of getting delisted. Clients who intend to trade low-priced stocks are advised to do with caution.
(3) To protect clients' interests, Tiger Brokers charges the trading commission and platform fee up to 0.5% of the trade value respectively. If the calculated maximum commission per order is lower than the minimum commission per order, Tiger Brokers will charge the minimum commission per order.
(4) If there is any change in the fees charged by third parties such as exchanges and regulators, Tiger Brokers will adjust the fees it charges on their behalf accordingly.
(5) The above "Commission" and "Platform Fee" may not apply to clients of some partner platforms.

Notes:

(1) Singapore government will levy a GST (Goods and Services Tax) at a rate of 7% on the above "Tiger Charges", "Trading Fee" and "Settlement Fee".

Notes:

*If the net dividend is lower than HKD 30, it will be deducted fully.

*Less than 1 lot of the above service stocks are recorded as 1 lot.

*Singapore government will levy a GST (Goods and Services Tax) at a rate of 7% on the above "Other Service Charges".

Notes:

(1) For customers who trade and hold positions in Singapore Exchange (“SGX”) counters, TBSG will hold these stocks in segregated custodian accounts.

(2) TBSG charges a quarterly nominal fee for custodian accounts. We call this a custody fee. Custody fees are charged on the 4th business day of the next quarter.

(3) Custody fees will be waived for accounts with trading activities in the quarter. For accounts with no trading transactions in the quarter, a nominal fee of SGD 2 will be charged.

(4) Example: Customers with no trading activities in Q2 2022 (1 April 2022 to 30 June 2022) will be charged custody fees of SGD 2 on 6 July 2022 (4th trading day of Q3 2022). Custody fees will be waived shall the customer have trading activities in Q2 2022.

(5) Transaction taxes, where applicable, are passed through to TigerBrokers clients on top of the standard charge. You can see the detail of the fee charged in the Trades section of your Activity Statements. For more information on Transaction taxes, please click here.

(6) Commission, Platform Fee, Trading Fee, Clearing Fee, Custody Fee and Tax Service Fee are subject to 7% GST (Goods and Services Tax).

Notes:

(1) Singapore government will levy a GST (Goods and Services Tax) at a rate of 7% on the above "Commission", "Platform Fee", "Handling Fee", "Securities Management Fee" and "Settlement Fee".

Notes:

(1) Singapore government will levy a GST (Goods and Services Tax) at a rate of 7% on the above "Commission" and "Platform Fee".