American Depository Receipts (ADRs) are just US versions of a non-US stock. For instance, if you wanted to buy Sony shares because you are a massive Playstation fan, it’s very difficult to buy stocks in Japan. But, fortunately, there is a US-denominated version of Sony shares on the NYSE which are much easier to buy that track the Japanese listing.
There are a few different ways to use ADRs, depending on your investment objectives.
You can buy ADRs to invest in the long run from the UK with a stock broker like Hargreaves Lansdown, or you can open an account with a US stock broker like Interactive Brokers. Both of these investment platforms will let you buy ADRs in a general investing account, ISa or SIPP (as long as the underlying (original) stock is traded on a recognised stock exchange).
If you are more interested in short-term price moves you can trade ADRs as a CFD or spread bet. Financial spread betting with a firm like IG in the UK is exempt from capital-gains, so you won’t have to pay any tax on your profits.
With CFD trading, you can get better prices because you can trade DMA if your broker offers it like Saxo.
But beware, with both there are risks and costs. With both CFDs and spread betting you will pay overnight funding charges, which can rack up for medium and long-term positions. Plus, you are trading on leverage so as well as your profits being amplified, so can your losses.
However, one added bonus is that you can go short if you think ADRs will go down, which you can’t do when investing normally. You can buy a put option, if you are an options trader, but options on ADRs are fairly illiquid, but still possible with an options broker like TastyTrade.
Some of the biggest ADRs in the US are:
- Taiwan Semiconductor Manufacturing Company (TSM) – Taiwan
- Novo Nordisk A/S (NVO) – Denmark
- Alibaba Group Holding Limited (BABA) – China
- Toyota Motor Corporation (TM) – Japan
- Royal Dutch Shell plc (SHEL) – United Kingdom/Netherlands
- BHP Group Limited (BHP) – Australia
- British American Tobacco p.l.c. (BTI) – United Kingdom
- HDFC Bank Limited (HDB) – India
- ICICI Bank Limited (IBN) – India
- Infosys Limited (INFY) – India
If you want to invest in ADRs you can compare UK stock brokers and what they charge for buying US stocks below:
| US Stock Buying Platform | US Commission | FX Rate | Account Fee | ISA | Customer Reviews | More Info |
|---|---|---|---|---|---|---|
 | 0.5 cents per share | 0.02% | $0 | ✔️ | (Based on 928 reviews)
| Visit Broker Capital at risk |
 | 0.015 USD/Share (min. 1 USD) | 0.25% | 0.12% - 0.08% | ✔️ | (Based on 73 reviews)
| Visit Broker Capital at risk |
 | $0 | 0%-1.5% | $0 | ❌ | (Based on 276 reviews)
| Visit Broker Capital at risk |
 | £3.50 - £5 | 0.75% - 0.25% | 0.25% (max £3.50 per month) | ✔️ | (Based on 1,094 reviews)
| Visit Broker Capital at risk |
 | £5.95 - £11.95 | 1% - 0.25% | $0 | ✔️ | (Based on 1,760 reviews)
| Visit Broker Capital at risk |
 | £3.99 | 1.5% - 0.25% | £4.99 - £19.99 per month | ✔️ | (Based on 1,119 reviews)
| Visit Broker Capital at risk |
 | £0 - £10 | 0.5% | $0 - $96 per year | ✔️ | (Based on 678 reviews)
| Visit Broker Capital at risk |
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
