Trading in native market or ADRs

[schin]

Hi all, 

 

I was looking into some European stocks and have Interactive Brokers and Charles Schwab for my accounts. I was wondering how people approach buying ADRs (OTC market) versus buying directly on the Milan or UK markets? 

 

Does anyone have any advice? Obviously, the spread is better going directly to the market -- but, I need to convert currency to purchase.... and pay a bit of commission. I am not sure how dividends and other fees might come in.

 

Conversely, if I buy the ADR/OTC share, the bid/ask spreads are generally bad and associated liquidity.  There is a commission too here.. but, again, I am not sure if book keeping for the brokerage is similar with the ADR/pink sheet intermediary.

 

Again, normally, I don't think about this.. but, wanted thoughts from people that invest oversees.

 

What if the shares trade on NYSE like Barclays or Deutsche Bank?  Their spreads are good and generally very easy to get in and out.. but, once on the OTC.... like Unicredit, Commerzbank, etc.... those spreads are worst.

 

Thoughts?