opihiman2 Posted March 17, 2015 Share Posted March 17, 2015 Any of you Canadian guys (or even U.S. guys with financial interests in Canada) ever used Norbert's Gambit to exchange currency near the spot rate? If so, what's the best fund to use to minimize bid ask spread? I read that RBC's stock listing on either side is the best, most liquid fund to use. But, I thought maybe you guys might know of a better one. Also, any advice on what broker I should use? Currently, I'm with TD Ameritrade. I was thinking of heading over to IBKR, which may just be better to use since I think they are also a forex broker. Anyways, any inputs would be appreciated. Link to comment Share on other sites More sharing options...
writser Posted March 17, 2015 Share Posted March 17, 2015 If you open an IB account spot rates are so competitive that you shouldn't need Norbert's Gambit. They're also way cheaper than TD Ameritrade in general. It's basically a no-brainer. Only downside is that the learning curve of their platform is a bit steeper. Link to comment Share on other sites More sharing options...
bizaro86 Posted March 17, 2015 Share Posted March 17, 2015 One good option is DLR/DLR.U, which is an exchange traded fund traded on the TSX. It's assets are only US dollars, so it tracks the currency. It trades in both $C (DLR) and $USD (DLR.U). Link to comment Share on other sites More sharing options...
opihiman2 Posted March 17, 2015 Author Share Posted March 17, 2015 One good option is DLR/DLR.U, which is an exchange traded fund traded on the TSX. It's assets are only US dollars, so it tracks the currency. It trades in both $C (DLR) and $USD (DLR.U). I read from Norbert himself that not to use DLR anymore. The fund is too illiquid causing the bid / ask spreads to be wider than it should be. RBC supposedly has a much better spread. Although, I haven't checked it out lately. I suppose I should just get into IBKR. I mean, $10 a month is less than what I spend on Internet or cell phone service. But, it's probably infinitely better for my financial well being. Link to comment Share on other sites More sharing options...
EliG Posted March 17, 2015 Share Posted March 17, 2015 Currently, I'm with TD Ameritrade. To execute the gambit, you need to be able to settle your trades in both currencies, CAD and USD. Either within the same account, or in two linked accounts (CAD & USD). Can you do that at TD Ameritrade? If you can't, I don't see how Norbert's Gambit can be of any use to you. Link to comment Share on other sites More sharing options...
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