I am pretty new to ADR concept. Just that recently, I realize by owning ADR, I will be charged an amount of fee.
- How frequent the ADR fee is being charged? Is it a one time fee, or per annual fee?
- I am a long term investor, where I usually hold a stock >5 years. This ADR fee seems will increase my investment cost as time goes on. I was wondering, is it worth paying the ADR fee? Or should I just directly invest in that company local stock market. (Say, for BP, if I want to avoid the ADR fee, I will just directly invest in London Stock Exchange)
p/s I am a Malaysia resident. Investing in either London market or US market will both expose me to currency exchange risk. Hence, the point which ADR will reduce currency exchange risk doesn't apply to me.