Norbert's Gambit on TDDI using DLR

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Jul 31st, 2020 4:19 pm

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May 8th, 2020 11:57 am

Harambasa [OP]: Newbie; May 30, 2008; 60 posts; 20 upvotes

May 8th, 2020 11:57 am

Norbert's Gambit on TDDI using DLR

Hello. I am doing my first Norbert's Gambit in my RRSP using DLR.TO. I bought and journaled over my shares to my US subaccount. Even though I have journaled the shares to the US side, I am still seeing a Canadian flag next to the ETF.

If I go to sell the ETF, should I be selling the shares as DLR.U even though it shows as DLR.TO on my US side? I'd prefer to get an answer before doing something I might regret later.

I am currently waiting on the phone with TDDI but I think I would get a faster answer on this forum. Thank you!

Thread Summary

How to do Norbert's Gambit on TD Direct Investing (TDDI) using DLR ETF.

18 replies

May 8th, 2020 12:31 pm

jerryhung: Deal Expert; Sep 19, 2004; 26347 posts; 8600 upvotes; where I belong

May 8th, 2020 12:31 pm

I believe you enter DLR.U in the sell order prompt despite the DLR showing up
Try it, since you can verify at next page confirmation anyway

Which Credit Cards to sign up? >> Jerry's Mega Thread of Credit Cards Q&A

May 8th, 2020 12:40 pm

Harambasa [OP]: Newbie; May 30, 2008; 60 posts; 20 upvotes

May 8th, 2020 12:40 pm

Thank you! I tried it.

Another question - since I already journaled the shares over, does that sort of determine my exchange rate right away? I put in a limit order but if my exchange rate is already determined at the time of journaling, does it make more sense to sell using a market order?

May 10th, 2020 10:55 pm

jerryhung: Deal Expert; Sep 19, 2004; 26347 posts; 8600 upvotes; where I belong

May 10th, 2020 10:55 pm

Harambasa wrote: ↑ Thank you! I tried it.

Another question - since I already journaled the shares over, does that sort of determine my exchange rate right away? I put in a limit order but if my exchange rate is already determined at the time of journaling, does it make more sense to sell using a market order?

DLR > DLR.U - your FX rate is already determined since DLR.U trades around 10.1X, so just sell whenever you want, market or limit order
DLR.U > DLR - your FX is undetermined, so you can sell when DLR is high (I recently sold $14.3/$14.5)

Which Credit Cards to sign up? >> Jerry's Mega Thread of Credit Cards Q&A

+3

May 10th, 2020 11:01 pm

slb4ever: Newbie; Dec 6, 2011; 6 posts; 4 upvotes; YORK

May 10th, 2020 11:01 pm

Yes, if you transferred the securities to the US account, place a trade to sell DLR.U in that account to get US cash.

+2

May 11th, 2020 7:42 am

Harambasa [OP]: Newbie; May 30, 2008; 60 posts; 20 upvotes

May 11th, 2020 7:42 am

Thank you both for your replies. Much appreciated. I'll be more sure of things the next time I attempt the NG with DLR.

+1

Jul 21st, 2020 2:39 pm

vivibaby: Banned; May 15, 2016; 7020 posts; 2490 upvotes

Jul 21st, 2020 2:39 pm

How much do I save for a transaction with TD using norbert's gambit and is it worth it at this time given the exchange rate?

I am gong to buy maybe 50k today on one stock tomorrow with anticipation of jump but am thinking of just buying it with cad cash since it won't make it in time. I'm trying to find the additional cost it will cost me if I buy today.

If I buy the stock and then sell it in my account it will go back to cad so I lose transaction fee twice right? What is the best way of doing this in short time frame?

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Jul 24th, 2020 10:21 am

vivibaby: Banned; May 15, 2016; 7020 posts; 2490 upvotes

Jul 24th, 2020 10:21 am

I just bought DLR a couple days ago and am looking to move it from the cad to usd. Do I use the security transfer option in webbroker?

Did I buy in at the exchange rate several days ago or is the exchange rate “now” when I move DLR to DLR U?

I think the currency exchange hasn’t been done yet but why does it say the exchange rate is 1.33 when it Is different in xe.con? I thought this doesn’t charge commission fees?

Thank you.

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Jul 24th, 2020 11:03 am

Rhaegar: Deal Addict; Jan 28, 2012; 1769 posts; 670 upvotes

Jul 24th, 2020 11:03 am

I'm in the middle of trying to do one myself.

When you buy DLR for 13.xx you are then equivalent to holding USD in your CAD account so you've done the exchange at that point. The DLR.U version is always priced at like 10.11, it's the CAD one that fluctuates based on exchange rate.

Yes, you use the securities transfer to move it to your USD account. The annoying thing is it takes a couple days to "settle" so you can't do it right away. Going from CAD to USD this is fine because you already locked in the rate when you buy. Going from USD to CAD the delay can work against you.

When it moves into your USD account it will say you are holding DLR, but you have to sell it as DLR.U to get US dollars.

Jul 24th, 2020 11:06 am

jerryhung: Deal Expert; Sep 19, 2004; 26347 posts; 8600 upvotes; where I belong

Jul 24th, 2020 11:06 am

Rhaegar wrote: ↑ I'm in the middle of trying to do one myself.

When you buy DLR for 13.xx you are then equivalent to holding USD in your CAD account so you've done the exchange at that point. The DLR.U version is always priced at like 10.11, it's the CAD one that fluctuates based on exchange rate.

Yes, you use the securities transfer to move it to your USD account. The annoying thing is it takes a couple days to "settle" so you can't do it right away. Going from CAD to USD this is fine because you already locked in the rate when you buy. Going from USD to CAD the delay can work against you.

When it moves into your USD account it will say you are holding DLR, but you have to sell it as DLR.U to get US dollars.

This

Recently my DLR buy at $13.5 CAD filled
so if I want to convert to USD, I'll let it settle (2-3 days)
Use TD "Security Transfer"
and put in "DLR.U" in sell box to go through
DLR.U is usually around $10.11~10.12 USD

Which Credit Cards to sign up? >> Jerry's Mega Thread of Credit Cards Q&A

Jul 24th, 2020 12:26 pm

vivibaby: Banned; May 15, 2016; 7020 posts; 2490 upvotes

Jul 24th, 2020 12:26 pm

Rhaegar wrote: ↑I'm in the middle of trying to do one myself.

When you buy DLR for 13.xx you are then equivalent to holding USD in your CAD account so you've done the exchange at that point. The DLR.U version is always priced at like 10.11, it's the CAD one that fluctuates based on exchange rate.

Yes, you use the securities transfer to move it to your USD account. The annoying thing is it takes a couple days to "settle" so you can't do it right away. Going from CAD to USD this is fine because you already locked in the rate when you buy. Going from USD to CAD the delay can work against you.

When it moves into your USD account it will say you are holding DLR, but you have to sell it as DLR.U to get US dollars.

If you go from USD to CAD, do you buy DLR.U? If so, why doesn’t it lock in the currency at the rate you bought at?

jerryhung wrote: ↑ This

Recently my DLR buy at $13.5 CAD filled
so if I want to convert to USD, I'll let it settle (2-3 days)
Use TD "Security Transfer"
and put in "DLR.U" in sell box to go through
DLR.U is usually around $10.11~10.12 USD

To clarify this is two steps?

Use TD "Security Transfer"
and put in "DLR.U" in sell box to go through

As in for the security transfer, I search for DLR to move DLR to USD account. And then when I want USD, I sell DLR.U even though it’s listed as DLR?

Just wanted to clarify as this is a big sum. Would hate to sell it back and get CAD in USD account.

Jul 24th, 2020 12:38 pm

Rhaegar: Deal Addict; Jan 28, 2012; 1769 posts; 670 upvotes

Jul 24th, 2020 12:38 pm

vivibaby wrote: ↑ If you go from USD to CAD, do you buy DLR.U? If so, why doesn’t it lock in the currency at the rate you bought at?

I bought some DLR.U in my US account yesterday for 10.10

It settled as DLR at 13.5x, so even in the US side it gets held as DLR because both are canadian listed. I think DLR.U only exists so that you can buy/sell DLR in USD

Jul 25th, 2020 2:42 am

vivibaby: Banned; May 15, 2016; 7020 posts; 2490 upvotes

Jul 25th, 2020 2:42 am

Rhaegar wrote: ↑ I bought some DLR.U in my US account yesterday for 10.10

It settled as DLR at 13.5x, so even in the US side it gets held as DLR because both are canadian listed. I think DLR.U only exists so that you can buy/sell DLR in USD

If that’s the case I’m surprise the banks and foreign exchange people are ok with it taking commission away from them!

Jul 25th, 2020 9:29 am

Rhaegar: Deal Addict; Jan 28, 2012; 1769 posts; 670 upvotes

Jul 25th, 2020 9:29 am

You do still end up paying $20 in commissions so it's not like they get nothing

Jul 26th, 2020 12:34 pm

DrPoopee79: Member; Sep 26, 2012; 308 posts; 209 upvotes; Edmonton

Jul 26th, 2020 12:34 pm

Any reason for doing this instead of any dual-listed stock? Tax implications? I have done it a couple times with FTS and SU in my RBC direct investing RRSP account, worked fine.

Jul 26th, 2020 5:23 pm

Rhaegar: Deal Addict; Jan 28, 2012; 1769 posts; 670 upvotes

Jul 26th, 2020 5:23 pm

DrPoopee79 wrote: ↑ Any reason for doing this instead of any dual-listed stock? Tax implications? I have done it a couple times with FTS and SU in my RBC direct investing RRSP account, worked fine.

You dont have to worry about swings in the stock this way. It takes a few days because you can't move it over until the trade "settles"

+1

Jul 31st, 2020 3:56 pm

machoman: Deal Addict; Oct 1, 2008; 2879 posts; 1090 upvotes

Jul 31st, 2020 3:56 pm

Trying to complete a gambit. I receive this message

The Market selected is not eligible for Market or Stop Market Orders. Please select another price type. For assistance, please call TD Direct Investing at 1-800-465-5463. [43982]

I have bought DLR on the CAD side of my TFSA. I waited 3 days for the trade to settle. I journal-ed the shares using the transfer option online. When I go to sell DLR.U the error above comes up. Any help is appreciated since TD DI hold times are hours.

Jul 31st, 2020 4:16 pm

introspect: Member; May 4, 2010; 260 posts; 254 upvotes; Ottawa

Jul 31st, 2020 4:16 pm

machoman wrote: ↑ Trying to complete a gambit. I receive this message

The Market selected is not eligible for Market or Stop Market Orders. Please select another price type. For assistance, please call TD Direct Investing at 1-800-465-5463. [43982]

I have bought DLR on the CAD side of my TFSA. I waited 3 days for the trade to settle. I journal-ed the shares using the transfer option online. When I go to sell DLR.U the error above comes up. Any help is appreciated since TD DI hold times are hours.

The message is implying that you should change your order type to Limit Order.

Jul 31st, 2020 4:19 pm

machoman: Deal Addict; Oct 1, 2008; 2879 posts; 1090 upvotes

Jul 31st, 2020 4:19 pm

introspect wrote: ↑ The message is implying that you should change your order type to Limit Order.

Thank you very much! Can't believe I missed that.

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