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Living sometimes in Canada and sometimes in France, I use both Questrade and Degiro.

My question relates to the following stocks:

  • OTCMKTS: SFTBY (SoftBank on OTC Markets - with Questrade)
  • FRA: SFT (SoftBank on Frankfurt Stock Exchange - with Degiro)

I don't understand why these two stocks didn't increase as much as each other. Aren't they supposed to represent the same asset on the Tokyo Stock Exchange?

From 19 Mar 2020 to 16 Feb 2021

  • SFTBY has increased by 285%
  • SFT has increased by 229%

This makes a difference of 56%, which seems a lot to me. How can it be explained?

In your opinion, should the OTC market be preferred to foreign shares on the Frankfurt Stock Exchange? What are the advantages/disadvantages of one or the other?

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SFTBY is quoted in US dollars. SFT is quoted in euro. You’re seeing the effect of a change in the exchange rates between the two currencies during the period.

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  • Interesting! Does this explain the totality of the 56% difference according to you? I just looked at the EUR / USD chart on Google, and the variation over this period is 14%.
    – Santa Claus
    Feb 16, 2021 at 19:52
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    You cannot subtract the increase percentages, that doesn’t give a useful number. Divide the final values: 385% by 329%, and you get about 117%, so the 17% would be the currency exchange impact.
    – Aganju
    Feb 16, 2021 at 22:33
  • Ok, it makes sense. So the only factor explaining this difference according to you, comes from currency fluctuations? This difference being expressed by dividing one increase (in %) by the other (in %) ? Assuming a price change over this period, to avoid a division by zero.
    – Santa Claus
    Feb 17, 2021 at 5:04

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