Cheapest Currency Exchange For Canadians | USD/CAD | Norberts Gambit
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- Опубликовано: 9 сен 2024
- This video breaks down the most effective strategy for converting your currency from CAD to USD and vice versa. This is called Norbert's Gambit, shout out to Norbert. The process takes forever, in my mind at least, it takes 3 days (best case) and 4 days (standard). I go through a few examples of times I've used this to exchange currency, using questrade for reference.
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Hey guys, welcome to the channel I'm a full time Chartered Accountant as well as a part time Real Estate agent with a background in finance, investing, budgeting and of course, real estate.
I've been on a personal mission for the last 10 years to build multiple streams of income, including both passive and active income. On this journey, I've gained a ton of domain knowledge about personal finance and investments that I would love to share.
My goal for this channel is to help you understand basic taxes, personal finance, investing, budgeting and expense management.
Your explanation is very clear, quiet and to the point.
Thanks!
Yes. It was quite quiet.
Thank you. My Canadian account was charged 1.5% exchange rate when i bought US stock. I will try this method
wow 1.5% is huge, I've transferred $50K into USD with little more than a $50 total fee.
@@CanadianFinancePro
I heard about something called Norbert’s Gambit to avoid the fees. I will see if it works
@CanadianFinancePro
Used Norbert’s Gambit today with RBC and it worked. Payed for the buy and sell fees only, no exchange rate fees
Beauty@@mohamadsaleh779
PLEASE PLEASE don't stop doing this! I love seeing the numbers. Gives me something to aspire to! Did you get a new video editor? New special effects are fun :)
This can be done in Wealth Simple right? they do indeed have a USD account if you pay $10 a month subscription or are a premium client
Who would you email to perform the journal? I've never tried with WS.
I like your video because you show us some trick 😊😊😊 .. thank you Mr. Bassem
Thank youuu
😀
Hey! I had a question.
When I journal my cad to usd do I need a us bank account or can I leave it in quest trade but not invested?
Hey, you can just leave it in Questrade, they'll automatically give you a USD account, you don't have to withdraw to your personal bank.
This is wonderful thank you. Is there a version to get CAD to EUR?
Hey Andrew, unfortunately I don't think its possible. I've been researching, trying to find a 'CAD to EUR' etf that I can do this maneuver on, I think USD/CAD are special examples :s
Hello Bassem. Thank you so much! That is super clear. I have one last question. I looked everywhere and could not get the answer. I hope you can help me. I am currently holding VSP. Can I ask that it be journaled directly into VOO or do I need to sell VSP, buy the Horizons US Dollar Currency ETF, sell it and then buy VOO? Is there a list somewhere of all the dual listed ETFs and stocks? Thanks so much! Have a great day!
Hey, they need to be the exact same, VSP and VOO are not the same, so it won't work. An example is RBC, they have RY.TO on the TSX and RY on the NYSE, its the same, just on 2 exchanges. Also, the only reason DLR works, is it doesn't fluctuate much within a few days. You don't want an actual stock to do this, because it could fluctuate 1%, 2% or 3% within the 5 days it takes to 'journal'. You might lose more than you would have if you just converted the FX normally. Ideally, everyone uses DLR because the fluctuations within 5 days are .01%.
Hi, subbed! What would happen if within those 3-4 days CAD or USD value goes up/down?
That's the risk we take, we could make or lose $$, thankfully our currencies don't change that quick over such a short time frame.
I am trying to convert USD to CAD. I can see DLR and DLR.U tickers (and not DLR.To and DLR.U.TO) - are these same?
Can you check if its Digital Realty Trust Inc? Because I would not buy that ... DLR to me means Digital Realty Trust
Hey love the show...!!! Thank you, please keep posting your monthly numbers... It's nice to see someone who is transparent and willing to teach his community how to create a passive income by showing what he does and showing proof.... I also joined your discord and your telegram group plus your membership hoping to learn from the community and you so that I can create monthly revenue streams from DeFi and investing cryptocurrency
I found knightbridge to be the cheapest.
Haven't heard of it, I'll need to take a look.
Subscribed😁
Welcome!
So today , if I need to buy US etf say VOO , it needs to be converted using above method ?
This is outlining the cheapest way to exchange CAD/USD. You can deposit USD and buy VOO (easiest). You can deposit CAD and use your broker to exchange to USD (most expensive).
Nice thanks you👍🙏🔥
Does this work USD to CAD or some risk involved waiting 2-3 days ? TD also does the USD to CAD conversion without fees but I cannot compare the conversion rate between this method and td. :(
it does work from USD to CAD and CAD to USD, I've done it with $50K previously, its just annoying waiting a few days.
@@CanadianFinancePro thanks bro !
I have a CDN and US sdrsp. If I purchased that etf in my US sdrsp and request to journal would those funds now appear in my cdn sdrsp 4 days later or do they appear as the cdn etf in my US sdrsp account?
Hey Bassem! Such a great video brother.
Just wondering, I have some money in my US bank account that I want to convert to CAD using this process. My issue with questrade is,
whenever I try to fund my questrade account with USD, it charges me $20-$30 wire transfer fee as my money has to go through a "intermediary bank" which is JP Morgan Chase, and JP Morgan charges a fee before they deposit my USD into my questrade account. Any way I can get around this?
Thank you!
Hard to avoid fees since its how the banks make money, have you tried to do an EFT pull FROM questrade instead of US wire from a bank account? Might even be able to do a cross border transfer if you open a US TD account and transfer to a Canadian TD account etc.
Would you recommend doing this than exchanging the currency on IB?
To me this is cheaper, I do believe IB will allow the same thing. I just dont know if they'll respond to your Journal request as quick.
What about transferring CAD TO USD in personal bank accounts ?
I don't have a hack or easy way to fix that, the way 'hack' I know, is this maneuver and it has to be done in a trading account.
Great info. I also heard about CDR launched by CIBC on Neo exchange. What’s your opinion on buying USD stalks without conversation. Have yourself tried this option yet? Thanks
I actually haven't looked into that to be honest.
@@CanadianFinancePro ok. Thank you !
Hi there, so if I'm a canadian that gets paid in USD, i.e. all my funds are in USD, and I want to make a long term ETF investing portfolio, should I just buy all my ETFs on the NYSE? Or should I use noberts gambit to convert all my funds to CAD and purchase ETFs on the TSX?
Oh that's interestinggggg, if you get paid in USD, I would purchase NYSE etfs/stocks etc etc. There will always be a slight drag on your returns when you purchase in a foreign currency, like VSP will always be behind VOO since there are extra management costs converting/managing.
Hi, Is this the same process if dealing with RBC Direct Invest. Thks,
Hi Joanne, yes it is the same process, one question might be: does RBC charge a fee for journaling? I'm not sure, but it's still probably cheaper than paying their conversion fee.
Hello Bassem. I’ve been enjoying your great video to learn. Do you have any group I can join and more learn about option? Thanks
Hi Jay, unfortunately I don't have any groups dedicated solely to options trading, just my videos and my comment section :p
If you want, there's a really good YTer called 'Project Option', he has a 3 hour video about the basics of call options and put options. Its free too!
@@CanadianFinancePro I see. I thought you have like on WhatsApp you notice live alert for people who join in your group. Ok but I will keep enjoying your video. Thanks
Hi Bassem. I am newbie for option but I just try to open new account with $1000 on Questrade.
What would you recommend for that please?
I have a question like today I bought DLR.TO at price of 12.59 but the price on DLR.U.TO is 10.09 USD (Which is $12.52 CAD) so did I lose money or what since I bought at 12.59. I also notice that DLR.TO fluctuates a lot but DLR.U.TO been at 10.08-10.10 range
They fluctuate at the same % since they're literally opposites of each other.
@@CanadianFinancePro I have the same question. Does it really matters to look for the etf price or just do it on whatever rate because we are still saving a money
What do you say boss?
Does this work with quest mobile too?
Yes it does
@@CanadianFinanceProdo we need a us account in questrade?
@@MISSY4EVR Hey, questrade automatically has a US account. You don't need to open another one.
@@CanadianFinancePro ok awsome. Thanks for the insight!
@@MISSY4EVR no worries! Happy to see these older videos still getting traction eh
Hi Bassem,
I’m just interested in buying USD, not “buying USD for Stock”. My question Is , this way kinda having an account that I can count as my asset?
This way is great for getting USD, you don't have to use it to buy stock, just note it takes 4 business days to achieve.
@@CanadianFinancePro so this is safe way to save money into USD. Thanks you. This helps me a lot.
👍💰
I understand the concept. Question are you buying the American dollar at spot, or is there a spread
The only 'spread' would be the variance in the 3-4 days of the CAD/USD. If you buy on Monday but only have time to sell on Thursday, any fluctuations there would be your spread. In an ideal world, its spot rate, hopefully the stock market will move to same day settlement instead of T+2
Great video, I've done this a couple of times and it's not as scary as it seems. This is the best way, thanks!
Worth it for all the brokers in Canada except for IBKR
Oh I gotta see why it doesn't work for IBKR? Do they charge too much?
@@CanadianFinancePro no the opposite, it's just not needed. You can convert at market rate with a market order for only a couple of dollars. Instant as long as the forex market is open and incredibly cheap.
@@CanadianFinancePro Brad answered perfectly below. Overall, I think IBKR is a much better broker for options selling than Questrade. Especially for smaller accounts. The fixed fee of $10 for normal traders or $5 for active traders is ridiculous. For your large account it might not feel like much, but hey it might save you a few cents. Great content BTW 🔥
This is probably the best explanation I've heard on RUclips around this topic. Those fees will eat into a lot of your buying power!
yesssss I was hoping I made it clear enough. Are you at 100K subs yet? Thanks for the support :p
Hello Bassem. Is this better thank IKBR? They only charge flat $2 fee. Also, I'd there la limit? What do you suggest for a transaction >$1M? Thank you
Do you mean Questrade over IBKR? I've done this with $50K at a time, I don't see what would be better for $1M.
@@CanadianFinancePro correct. IKBR vs Quest Trade.
Nice video!! Do you know a more expensive dual listed stock? Cuz if I want to convert large amount, questrade will charge up to 10$. I was thinking maybe shopify?
I think DLR is good since the daily move won't be too much. Shopify popped like $60 today, so the time delay between buying CAD and then selling USD, you might win or you might lose if SHOP tanks ...
@@CanadianFinancePro okok thank you :))
Try Canadian pacific
How would you do this when submitting your Canadian tax return ? I’m wondering if this would become a nightmare to file accurately, last thing you want is the CRA knocking on your doors.
Great question, there aren't really any tax gains/losses other than any variance between buying/selling. The CAD-equivalent ACB of your USD cash is equivalent to the exchange rate on the date your DLR.U sale is settled. If done correctly, it should be bang on.
Excellent way. Can't be simple enough than this!
does it work the other way around (USD to CAD)?
It does! Just switch the process around, buy DLR.U first then journal to DLR
even simpler its called forex...buy into a dip and re sell higher, youll have your currency+ some profit
Thx Bassem last 3 times I did this, I decided to use email too and it works perfectly. Thx bud 😊
I hope your options are holding up, I remember you mentioned selling puts on PLTR ... looks like I'll be bagholding if it stays this low :s
@@CanadianFinancePro hey bud I actually decided to stick it out with covered calls for 1 or 2 month. In the end I am happy as I have been learning a lot just watching them. Good luck with PLTR 🙏
Dam I traded 180k!!! Old way fml!
Not the end of the world! You know for next time :p I usually do this move with $50K at a time.
@@CanadianFinancePro I screwed up big changed to usd then back to cad to buy safer utility stocks after tech hype I sold it all and went back to cad
Oh man this is something I did not pay attention to and realized its slowly starting to add up. Also cmon guys, hit that subscribe and like button!
Tf is this
Is this still applicable??
I’m trying to exchange CAD to USD from a cad cash acct, buying DLR.to on the TD app. Then I’d move the shares to usd cash acct
And sell under DLR.u.to as stated.
When I try to buy DLR.TO it says I may be subject to “MERS” or Management expense ration fee’s. Is this normal? I thought I could exchange at zero fee’s except the $10 to buy and $10 to sell??
Hey, it is still applicable, I believe the MERS is the annual fee taken out of the fund. I've done this recently but still with Questrade instead of TD. DLR.TO is an etf, have you purchased another ETF with the app, did it give you the same prompt?
@@CanadianFinancePro hey thank you for the reply, I spoke with TD investing on the phone and they transferred the shares at no cost. They said the MERS prompt wasn’t applicable to this stock. They transferred the shares to my usd cash acct and I will sell them tomorrow. Thank you for the video. Norbert’s gambit is genius, saved me $2200 today!