For people who are interested in investing in international stocks, there is another alternative available on Singapore Exchange (SGX) that many are not familiar with. Instead of accessing foreign stock markets directly, investors can trade American Depository Receipts (ADRs) on the SGX just like any normal local listed stock. With ADR trading, investors can easily buy foreign stocks such as HSBC, Royal Dutch Shell, China Mobile and even Toyota etc.

What are American Depository Receipts?

ADRs are basically securities traded on the US stock market that represents shares in a foreign stock. Basically, ADRs are the equivalent of trading foreign stocks like HSBC on the US stock exchange such as NYSE. ADRs are denominated in US Dollars and ADR holders are entitled to all coporate actions such as dividends and bonus shares.

No Stamp Duty For Local ADR Trades and Same Costs as Local Stocks

There are no stamp duties ...