Tax advice

What is Norbert’s Gambit?

The Norbert’s Gambit is a popular strategy among Canadian investors to convert Canadian dollars (CAD) into U.S. dollars (USD), or vice versa, at a very low cost. Instead of paying the usual 1.5–2.5% currency conversion fee charged by banks and brokers, you use interlisted securities (stocks or ETFs that trade both in Canada and the U.S.) to get close to the interbank rate.

How it works

  1. Buy an interlisted stock or ETF in CAD

    • The most common is the Horizons U.S. Dollar ETF:

      • DLR.TO (CAD version)

      • DLR.U.TO (USD version)

    • You could also use big Canadian banks (TD, RY, BMO) or ETFs listed in both markets.

  2. Journal/transfer the shares

    • Ask your broker to “journal” or “transfer” the Canadian version (DLR.TO) to the U.S. version (DLR.U.TO).

    • This usually takes 1–2 business days.

  3. Sell the U.S. version in USD

    • You now have U.S. dollars in your brokerage account, with only normal trading commissions paid.

Result: You’ve converted CAD → USD at almost the spot exchange rate, avoiding big conversion fees.

Broker by Broker

1. Disnat (Desjardins Online Brokerage)

  • Works with DLR/DLR.U.

  • You need to call or send a secure message to request journaling.

  • Processing time: 1–2 business days.

2. RBC Direct Investing

  • Supports Gambit with DLR/DLR.U and interlisted stocks.

  • Journaling can be done by phone or form request.

  • Usually completed in 1 day.

3. BMO InvestorLine

  • Gambit with DLR/DLR.U works fine.

  • Requires a call to customer service to journal.

  • Typically takes about 24h.

4. TD Direct Investing

  • Very popular for Gambit.

  • Steps: buy DLR in CAD → request journaling via secure chat or phone → sell as DLR.U in USD.

  • Settles in ~2 business days.

5. CIBC Investor’s Edge

  • Supports Gambit.

  • Must call or submit request for journaling.

  • Usually takes 1–2 days.

6. Scotia iTRADE

  • Gambit is supported.

  • Requires form or phone request.

  • Sometimes 2–3 days delay before you can sell.

7. Questrade

  • One of the easiest for Gambit.

  • After buying DLR in CAD, you can request journaling online through the platform (“Journaling Request”).

  • Conversion completed in 1–2 days, then sell DLR.U in USD.

  • Only regular trading commission applies.

8. Wealthsimple Trade

  • Does not support journaling (DLR → DLR.U).

  • Any conversion is automatically done at Wealthsimple’s FX rate (not cheap).

  • Norbert’s Gambit is not practical here.

9. Interactive Brokers (IBKR)

  • You don’t need Norbert’s Gambit at all!

  • IBKR allows direct CAD↔USD forex conversion at interbank rates, with a flat fee (~$2).

  • Faster and cheaper than the Gambit.

✅ Quick Comparison

  • Best for Norbert’s Gambit: TD, Questrade, RBC, BMO (simple and fast).

  • Less convenient: Disnat, CIBC, Scotia (more paperwork/delay).

  • Unnecessary: Interactive Brokers (direct forex already cheapest).

  • Not possible: Wealthsimple Trade (no journaling).

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