| American Depositary Receipts (ADRs) | Foreign ordinaries traded in the over-the-counter (OTC) market | Foreign ordinaries traded on local exchanges overseas | Canadian Stocks | |
|---|---|---|---|---|
| Liquidity* | Varies by ADR | Low | Generally high; depends on the security and market |
U.S. OTC: Generally low, varies by security Local Canadian: Generally high
|
| Minimum position size | None | None | Generally none | Generally none |
| Trading hours** | U.S. market hours | U.S. market hours | Foreign market hours | U.S. market hours |
| Currency exposure | Yes | Yes | Yes | Yes |
| Settlement date | Trade date plus one day (T+1)3 | Varies by country, but usually T+1 | Varies by country/local holidays | T+1 (may vary depending on Canadian market holidays) |
| Online trading | Yes | Yes | No, broker-assisted by phone only | Yes |
| Margin*** | Yes | Rarely | Rarely | Rarely |
| Ongoing management expenses | ADRs have custody fees that are levied on a regular basis, such as annually or quarterly | None | None | None |
| Commission at Schwab |
U.S. Listed: Online trades: US$01
Broker-Assisted: US$25 U.S. OTC: Online trades: US$6.95 Broker-Assisted: US$31.95 (US$6.95 commission + US$25 broker assistance fee) |
Online trades: US$50 foreign transaction fee2 Broker-Assisted: US$75 (US$50 foreign transaction fee and a US$25 broker assistance fee)
|
Online trades: Not available, except Canadian Stocks Broker-Assisted: The greater of US$100 or 0.75% of principal, with no maximum |
Online trades: $6.95 Broker-Assisted: $31.95 ($6.95 commission + $25 broker assistance fee)
|
Source: Schwab Center for Financial Research.
Disclosure Title
View important disclosures about this table
*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.
- Standard online US$0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard US$0.65 per-contract fee. Service charges apply for trades placed through a broker (US$25) or by automated phone (US$5). Exchange process, ADR, and Stock Borrow fees still apply. Schwab One International® accounts require a minimum deposit to open. Please contact Schwab for details. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.
- 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.
- Canadian stocks settlement dates are subject to Canadian market holidays which may differ from U.S. holidays.