Norbert's Gambit Calculator 2026: How Much You Actually Save

Norbert's Gambit is a method to convert Canadian dollars to US dollars (or vice versa) at near-spot exchange rates by buying a dual-listed ETF on the CAD side and selling its USD-listed equivalent. The most popular pair is DLR.TO (CAD-listed) and DLR.U.TO (USD-listed) — both are the Horizons US Dollar Currency ETF. By buying DLR.TO, journaling it to DLR.U.TO, and selling, you avoid your broker's 1.5–2% FX markup.

Enter four numbers: (1) the CAD amount you want to convert, (2) your broker's FX markup percentage (typically 1.5–2.0%), (3) the DLR.TO/U.TO bid-ask spread (typically 0.10–0.20%), and (4) the commission per trade at your broker. The tool calculates broker FX cost, gambit cost (spread + 2 commissions), savings, and break-even amount. Updates in real-time as you adjust inputs.

The amount where the gambit's two commissions equal your savings on FX fees. Math: break-even = (2 × commission) ÷ (broker FX rate − spread). Examples: at Questrade ($9.95/trade, 1.75% FX, 0.15% spread), break-even is approximately $1,250. At Wealthsimple Trade ($0/trade), break-even is essentially $0 — every dollar you convert via gambit saves money. At Big 5 banks ($9.95/trade), break-even is similar to Questrade.

For amounts above $5,000, almost always yes. On a $20,000 conversion: broker FX fee at 1.75% = $350; gambit cost at $9.95 commission and 0.15% spread = ~$50. Net savings: ~$300 for 30 minutes of work. For amounts below $2,000, often not — the commissions exceed the FX savings. The calculator computes your exact break-even based on your inputs.

Most major Canadian brokers: Questrade (best, supports online journaling), TD Direct, RBC Direct, BMO InvestorLine, CIBC Investor's Edge, Scotia iTRADE, and Interactive Brokers. Wealthsimple Trade does NOT directly support journaling — use the Wealthsimple Premium native USD account instead ($10/mo or free with $4K invested). Each broker has slightly different processes for the journaling step.

Typically 3–5 business days end-to-end. Day 1: buy DLR.TO. Day 3 (T+2 settlement): journal DLR.TO position to DLR.U.TO on the USD side of your account. Day 3-5: sell DLR.U.TO. The journaling step is the bottleneck — at Questrade it's online and instant; at Big 5 banks it requires a phone call. Plan ahead if you're targeting a specific USD purchase price.

Three main risks: (1) DLR.TO/U.TO price moves between buy and sell — unlikely to be material since they're priced in different currencies of the same fund, but minor slippage possible; (2) journaling refused or delayed — call broker BEFORE the buy if you're new to it; (3) buying the wrong ETF on the wrong side. Always verify the ticker before placing trades. The risks are minor but worth knowing.

Yes: (1) Wealthsimple Premium native USD account ($10/mo) — direct USD trading, no gambit needed; (2) Questrade USD account — free, holds USD natively without conversion fees; (3) Interactive Brokers — 0.002% FX fees, essentially zero; (4) RBC US-Friendly Account — Big 5 banking customers can avoid FX fees on transfers between Canadian and US accounts. For high-volume USD investors: native USD account is simpler than gambit.