![]() ![]() The resulting amount would be closer to $761.25. With the Norbert’s Gambit, the spread is very minimal but you have to execute a buy and sell order. You would expect to receive $781.25 USD but that’s not quite true since foreign exchange includes a spread each way as profit for the exchange houses. dollars and the exchange rate is around 1.28 Canadian dollars to buy $1 U.S. Let’s say you want to exchange $1,000 Canadian dollars to U.S. The spread is not as tight as it can be with DLR shares. inter-listed stocks) but I have found there is more fluctuation in the stock price between the US stocks and their TSX equivalent. The Norbert’s Gambit can be done with any dual-traded stocks (a.k.a. You save the spread minus the two transaction cost when using DLR and DLR.U. How Much Can You Save With the Norbert’s Gambit? Make sure the Norbert’s Gambit can be done smoothly by asking your discount broker about the ability to journal shares as it simplifies the time and steps it takes. As mentioned earlier, the steps are based on the experience with RBC Direct Investing and other discount brokers may have extra steps and you should make sure your discount brokerage acocunt has dual-currency support. The steps to exchange USD currency to CAD dollars using DLR as the ETF (Horizons US Dollar Currency ETF) are outlined below. If your discount broker doesn’t support the process and it’s important to you, you can always consider switching discount broker. What you need to understand with DLR and DLR.U is that they both trade on the Toronto Stock Exchange (TSX). It’s the best way for Canadian investors to avoid currency conversion fees.įirst of all, know that the process is smooth with RBC Direct Investing ( a popular discount broker) but not all trading platforms are created equal and you need to find out if yours can support executing the Norber’s Gambit to save on foreign exchange fees.įor example, Questrade does support the strategy but the journaling of the shares is not automated and you need to contact them. I regularly use the Norbert’s Gambit approach to convert USD to CAD (and vice versa) through RBC Direct Investing.
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