| American Depositary Receipts (ADRs) | Foreign ordinaries traded in the over-the-counter (OTC) market | Foreign ordinaries traded on local exchanges overseas | |
| Liquidity* | Varies by ADR | Low | Generally high; depends on the security and market |
| Minimum position size | None | None | Generally none |
| Trading hours** | U.S. market hours | U.S. market hours | Foreign market hours |
| Currency exposure | Yes | Yes | Yes |
| Settlement date | Trade date plus two days (T+2)) | Varies by country, but usually T+2 | Varies by country/local holidays |
| Online trading | Yes | Yes | No, broker-assisted by phone only |
| Margin*** | Yes | Rarely | Rarely |
| Ongoing management expenses | ADRs have custody fees that are levied on a regular basis, such as annually or quarterly | None | None |
| Commission at Schwab |
Online: $01Automated phone: $5 Broker-Assisted: $25 |
Online: $50 foreign transaction fee2 Automated phone: $55 ($5 TeleBroker® fee, plus a $50 foreign transaction fee) Broker-Assisted: $75 ($50 foreign transaction fee and a $25 broker assistance fee) |
Online: Not available Automated phone: Not available Broker-Assisted: The greater of $100 or 0.75% of principal, with no maximum |
International stock exchanges operate under different rules and guidelines than those in domestic markets. Learning about and considering these differences can help you prepare a better investment strategy for your portfolio.
View the available international markets you can trade in with Schwab.
Source: Schwab Center for Financial Research.
*Liquidity refers to the ability to quickly buy or sell an asset without affecting the asset’s price in a significant manner, not the ability to receive cash quickly.
**Foreign market hours vary. Broker-assisted order placement hours are different from order execution.
***Most ADRs listed on U.S. stock exchanges are marginable. ADRs that are traded through the U.S. OTC market are not marginable.
1. The standard online $0 commission does not apply to large block transactions requiring special handling, restricted stock transactions, trades placed directly on a foreign exchange, transaction-fee mutual funds, futures, or fixed income investments. Options trades will be subject to the standard $.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, foreign transaction fees for trades placed on the US OTC market, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.
2. Transactions in foreign ordinary shares incur additional custody, clearing, and settlement expenses. A foreign transaction fee is added to trades placed on the US over-the-counter market through the online or automated phone channels. The commission and foreign transaction fee will be combined and will appear as one line item, labeled "Commission," on the trade confirmation.
