Thursday, May 14, 2015

Interactive Brokers Nickle & Diming Me Again

I have 10 shares of Alibaba from their IPO @ $98!!  My fingers got itchy going into the hype and placed an order.

Anyways, I noticed in my IB account that there's a "fee" for holding $BABA:

2015-05-11BABA(01609W102) ADR Fee 0.02000000 USD per Share-0.18

What the hell does that mean?

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 An update from my Interactive Brokers Reports post, they decided to take it back with multiple confusing transactions.  So I owe money now?



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4 comments:

  1. AnonymousMay 15, 2015 at 7:15 PM

    I am going to take a wild guess here. The fee is like a bank fee. ADRs allow US investors to invest in foreign companies and for these foreign companies to have accept to american stock exchanges. I think the company, in question, must have a bank somewhere and then there is a custodian bank in the US, which does something to allow the stock to trade on american exchanges. You will likely be able to claim this at tax time somehow. Maybe US residents don't pay these fees.

    Try www.investopedia.com to see what they have about ADRs. A person I know who has some investments is blogger Dividend Mantra. If you contact him, he might be able to shed some light on it. Dividend Mantra I believe is the most popular blog for investing.

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    Replies
    1. PCMay 16, 2015 at 9:03 AM

      Hi A... Thanks for the helpful insight. This is my first ADR stock so I am not aware of the fee. Imagine all those outstanding shares being charged 2c... That would round up to a very nice figure for $BABA's trust account. I'm not going to bother claiming that 18c back... I don't even claim back the US tax credit when doing my taxes. Also, I've been getting dinged by IB for having my order not being filled end of day ... Also another penny here and there. Its annoying and its now running up a tab.

      Ive been to Dividend Mantra's blog... Every thing is so sugar coated there. ;-) hes so positive about everything!! I just like to complain and bitch about stuff.

      Delete
  2. AnonymousMay 15, 2015 at 7:21 PM

    http://ibkb.interactivebrokers.com/node/1185 This is a article about ADR fees. I think this should answer your issue and plus search ADR on www.investopedia as there is a video there on them. I have no investments ever in them.

    ReplyDelete
    Replies
    1. PCMay 16, 2015 at 9:07 AM

      Thanks for looking it up for me!! Appreciate it... I will check it out.

      Delete

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