The American depositary receipt (ADR) is a certificate of ownership of the American depositary share (ADS). ADS is priced in US dollars and representing a specified number of shares of a foreign company's stock. The holder of an ADR has the right to convert the ADR to shares of the underlying asset stock.
1) Client needs to submit an email application according to the template;
2) FUTU will send a confirmation email to the client;
3) FUTU will deduct the ADRs and fees in the transfer-out account of the client, and process the conversion;
4) FUTU will add the stocks to the transfer-in account.
Fee schedule for the conversion per stock:
700 USD handling fee per time + 5 USD conversion fee per lot/time (1 lot = 100 ADS, less than 1 lot will be rounded up to 1 lot).
Please note: For your conversion to be successfully processed, please make sure your US stock account have sufficient available funds to pay the fees.
Preparation for ADR conversion:
1) Client needs to have sufficient available funds to pay the fee for ADR conversion. Fee schedule for the conversion per stock: 700 USD handling fee per time + 5 USD conversion fee per lot/time (1 lot = 100 ADS, less than 1 lot will be rounded up to 1 lot).
2) Open the stock account in FUTU HK. After conversion is successfully processed, the stock will be transferred into the stock account in FUTU HK.
For example, if you want to apply ADR conversion to HK stock, After conversion is successfully processed, the HK stock will be transferred into the HK stock account in FUTU HK
Client needs to send the template below to cs@futuhk.com to inform FUTU the ADR needs to convert. Email should include (「Please note」 part needs to be included too):
1) Client information
FUTU ID:
Name of the client:
2) Information of the conversion request
Convert from/to: For instance, ADR conversion with HK share
Transfer-out account ID:
Transfer-in account ID:
Stock information: (Stock code and shares) e.g., 200 shares of BABA.US
Please note: I already understand the fee schedule for the conversion per stock is 700 USD handling fee per time + 5 USD conversion fee per lot/time (1 lot = 100 ADS, less than 1 lot will be rounded up to 1 lot).
Upon receipt of the client’s email application, FUTU will apply for the ADR conversion with clearing broker promptly and will notify the clients for the results via email.
After the client successfully applies for the conversion, generally the conversion will be completed within 10-15 business days, the actual processing time is subject to the clearing borker. Since the handling of ADR conversion is performed by clearing broker, if the ADR conversion could not be completed within 10 business days, please wait patiently.