Let’s say you want to exchange $1,000 Canadian dollars to US dollars and the exchange rate is around 1.28 Canadian dollars to buy $1 US dollar. The Norbert’s Gambit can be done with any dual-traded stocks but I have found there is more fluctuation in the stock price. You save the spread minus the 2 transaction cost when using DLR and DLR.U. How much do you save with the Norbert Gambit? 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 broker has dual-currency support for the account. The steps to exchange USD currency to CAD dollars using DLR as the ETF (Horizons US Dollar Currency ETF). 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). Make sure the Norbert’s Gambit can be done smoothly by asking your discount broker about the ability to journal the shares. The process is smooth through RBC but not all discount brokers are created equal and you need to find out if your discount broker can support it.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. Norbert’s Gambit with TD Direct Investing.Norbert’s Gambit with RBC Direct Investing.
How much do you save with the Norbert Gambit?.
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