Norbert's Gambit Explained Simply: How I Convert CAD to USD at Questrade

Norbert’s Gambit, explained simply: it is a way to convert Canadian dollars into US dollars without paying the 1.5% to 2% or more that banks and brokerages usually build into their exchange rate. I use it at Questrade whenever I move a larger amount into US stocks or ETFs. It takes a few days and a little patience, but on bigger amounts the saving is real.

Why currency conversion costs more than you think

You need US dollars to buy anything listed on the NASDAQ or NYSE (Apple, Nvidia, US-listed ETFs). Platforms give you two easy options, and both cost you:

1. Automatic conversion when you place the order: convenient, but you pay the platform’s exchange rate spread plus a conversion fee.
2. Converting beforehand: same spread and fee, just earlier, with little control over the rate.

That cost repeats every time you convert, and over years of investing it adds up to thousands.

What is Norbert’s Gambit?

The tool is the Global X US Dollar Currency ETF (formerly Horizons): it trades as DLR in Canadian dollars and DLR.U in US dollars on the Toronto Stock Exchange. Both are the same fund, which simply holds US dollar cash, so one price is in CAD and the other in USD (Global X). Moving your units from DLR to DLR.U is called journaling: your broker changes the currency side of your holding without selling anything.

How I do Norbert’s Gambit at Questrade, step by step

1. Step 1

   Buy DLR with Canadian dollars

   On the CAD side of your account. I place a limit order.

2. Step 2

   Wait for the trade to settle

   Canadian trades now settle one business day after the trade (T+1).

3. Step 3

   Ask Questrade to journal DLR to DLR.U

   In 2024 I did it through Questrade chat and over the phone (account number, security and number of units). Today you can also request it online: Management, then Journal shares. It costs $9.95 per request unless you have Questrade Plus.

4. Step 4

   DLR.U appears in your account

   Journaling took a day or two for me; Questrade says it can take up to 5 business days. You now hold the same units, priced in US dollars.

5. Step 5

   Sell DLR.U for US dollars

   Check the trading cost shown before you confirm.

6. Step 6

   Buy your US stock or ETF

   With the US dollars now in your account.

To go the other way (US dollars back to Canadian dollars), reverse it: buy DLR.U, ask Questrade to journal it to DLR, then sell DLR.

My tips from doing it a few times

• Plan ahead. I’m never in a hurry: I decide in advance when I’ll need US dollars, so the 3 to 4 days don’t matter.
• Use limit orders. I set my limit before buying. A price between the bid and the ask, during regular market hours, usually fills without overpaying. I avoid the first and last minutes of the trading day, when spreads can be wider.
• DLR barely moves. It follows the CAD to USD exchange rate, which in my experience moves very little over a few days. That small currency movement is the only real market risk.
• Keep the chat or call details (date, agent, units) in case you need to follow up.

How much can it save?

Amount converted	Saving in my comparison (fees at the time of my video, December 2024)
$1,000	About $0
$2,000	About $12
$6,000	About $72
$20,000	About $282

Since then, Questrade added a $9.95 journal fee (free with Questrade Plus), which takes about $10 off each saving above: the $2,000 example now saves only about $2. Fees and exchange rates change, so check current pricing and work out your own numbers before you start.

Does it work in a TFSA, RRSP or FHSA?

Before your first Norbert’s Gambit, ask your broker whether your specific account type can hold US dollars and whether it journals DLR. When I called Wealthsimple in 2024, they told me journaling wasn’t offered. Today it is: their help centre says you need an active USD account and must use the website, not the app. A good reminder that platforms change.

Taxes: journaling is not a sale, so it doesn’t trigger a tax event. In a non-registered account, selling DLR or DLR.U can create a small capital gain or loss, so keep your trade confirmations for your tax return. In a TFSA or RRSP this doesn’t apply.

When Norbert’s Gambit is worth it, and when it isn’t

Worth it when:

• You are converting a larger amount, where the saving clearly beats the $9.95 journal fee.
• You invest in US stocks or ETFs regularly.
• You can wait 3 to 4 business days.
• You’re comfortable placing a buy and a sell order and contacting support.

Not worth it when:

• You need US dollars today.
• The amount is small, where trading costs eat the saving.
• Your account can’t hold US dollars, or your broker doesn’t journal.

Is Norbert’s Gambit legal?

Yes. It uses ordinary purchases and sales of a publicly traded ETF, and journaling is a normal broker service. Canadian investors have used it for many years.

Where I do it

These are my referral and affiliate links. If you sign up through them, I may earn a reward (and with referral links, you may get one too), at no extra cost to you. You can always go to the company's website directly instead.

• Online brokerage

  Questrade®: Questrade® is a Canadian online brokerage. If you open a Questwealth Portfolios (managed investing) account through my link, I may earn a commission at no extra cost to you.

  Visit Questrade® (affiliate link · I use this)

Questrade® is a registered trademark and/or service mark of Questrade, Inc. Questrade, Inc. is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF).

My own experience, not financial advice. Fees, rates and broker policies change: check your broker’s current pricing and policies before you start.

What next

New to investing? Start with how to start investing in Canada, or follow every step in my Personal Finance guide. Questions? Ask in the comments on my YouTube video.