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Norbert's Gambit - First Time Please Help

  • Last Updated:
  • Nov 16th, 2017 12:05 am
Jr. Member
Feb 3, 2013
133 posts
55 upvotes
GREENWOOD, ns
moneyhelp wrote:

Makes me wonder if I want to open an account with RBC DI (I already bank with RBC) just for doing NG's, but then RBC DI will charge you inactivity fees if you don't meet their criteria of staying active. I would have no intention of trading with RBC DI except for doing NG, but don't want to be charge $25/quarter because I don't do any other investments. Any thoughts around this @sixcolors ?
I use RBC DI as my primary broker so I don't pay the inactivity fee. You'd have to figure out if you do enough trades to waive the fee or not. I think it's 3 a quarter. Other than that I doubt your ecn fees would be $100 but if you are converting USD to CAD the volatility on the spread while waiting for the Gambit buying DLR.U Journaling and then selling DLR may make up for it.
Jr. Member
Feb 3, 2013
133 posts
55 upvotes
GREENWOOD, ns
@moneyhelp I believe all the bank owned brokerages do not break out ECN fees. Qtrade stopped charging them but still charges SEC fees.

Questrade have just chosen to reward smaller transactions and accounts while not showing interest in larger ones. Everyone has a someone.
Deal Addict
Jul 17, 2005
1246 posts
265 upvotes
This thread has been a great help for me. One more question to confirm my theory that this would work for me.

- Employer deposits USD into my RBC USD checking account
- Transfer money from USD Checking account to the RBC USD DI Account
- RBC USD DI account to purchase DLR.U on the CDN Market
- Sell the DLR on the CDN Market
- See funds appear on the RBC CDN DI account
- Transfer money from RBC CDN DI account to a RBC Checking account.

Does that about sum up the best way to convert USD to CDN currency without losing a tonne to the bank? I'd have to do this every month but I think it if it works, I really want to minimize the amount lost in exchange rate conversions at the bank.
Newbie
Nov 7, 2016
54 posts
3 upvotes
wanton007 wrote: This thread has been a great help for me. One more question to confirm my theory that this would work for me.

- Employer deposits USD into my RBC USD checking account
- Transfer money from USD Checking account to the RBC USD DI Account
- RBC USD DI account to purchase DLR.U on the CDN Market
- Sell the DLR on the CDN Market
- See funds appear on the RBC CDN DI account
- Transfer money from RBC CDN DI account to a RBC Checking account.

Does that about sum up the best way to convert USD to CDN currency without losing a tonne to the bank? I'd have to do this every month but I think it if it works, I really want to minimize the amount lost in exchange rate conversions at the bank.
Sound about right to me, although I use Questrade as my broker to do NG. This year was the first time I used NG going from USD -> CAD (typically did it other way). One question, do you have to do this every month? I ask because RBC DI charges $9.95 for both buying and selling DLR.U.TO and then DLR.TO each time (ie. each month) which will add to your expense. I would recommend, if possible, to wait till your USD cash balance accumulates to at least $1,000 or more before doing the NG.
Deal Addict
Jul 17, 2005
1246 posts
265 upvotes
moneyhelp wrote: Sound about right to me, although I use Questrade as my broker to do NG. This year was the first time I used NG going from USD -> CAD (typically did it other way). One question, do you have to do this every month? I ask because RBC DI charges $9.95 for both buying and selling DLR.U.TO and then DLR.TO each time (ie. each month) which will add to your expense. I would recommend, if possible, to wait till your USD cash balance accumulates to at least $1,000 or more before doing the NG.
I do have to do it every month because it's my full monthly salary. It's definitely well north of $1,000 every month. If RBC (and all banks) didn't tack on so much to do perform currency exchanges, I wouldn't even really do this but the savings with this method far outweigh the $20 in charges for the transactions.

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