Norbert's Gambit: How to Exchange Canadian Dollars into US Dollars for Free!

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hello this is the academic investor here

this is a YouTube channel that makes

investing and trading videos for

beginners today I want to show you a way

to exchange Canadian dollars into US

dollars without any exchange fees using

a method called Norbert's gambit alright

let's get started when buying a stock

listed on the US exchange such as Apple

on the Nasdaq you would need US dollars

in order to make your purchase many

Canadians will often exchange their

Canadian dollars into US dollars through

the brokerage exchange they use such as

quests trade or through their banks

however the problem with this is the

hidden fees that are associated with

exchanging the currency for example

quests trade charges a 2% premium to

convert your currency the worldwide

currency exchange rate as of June 4th

2018 is one US dollar to 1.29 Canadian

dollars with the added 2% fees this

would make quest rates exchange rate one

u.s. dollar to one point three one

Canadian dollars if you were to exchange

10,000 Canadian dollars to US dollars

you would lose 200 Canadian dollars to

exchange fees now I will show you a

better way to obtain US dollars the

method I use is called Norbert's gambit

by using Norbert's gambit you convert

your Canadian dollars by the current

worldwide exchange rate without any

additional fees the analogy I used to

explain how this works is buying and

returning a store-bought item let's say

you go to a brand store such as Home

Depot in Canada and buy a chair using

Canadian dollars you then take the chair

and travel across the US border and

enter a Home Depot store in the u.s. you

return your chair to the Home Depot but

this time for US dollars instead as a

result you effectively exchanged your

canadian dollars into US dollars without

a premium in Norbert's gambit you would

be doing this within a stock exchange

using ETFs once you know the basics of

buying and selling stocks Norbert's

gambit will be an easy procedure for you

in this scenario the ETS stocks are the

chairs you are buying in the Toronto

Stock Exchange's home depot you would

first need a brokerage account in order

to buy stocks such as quest ring you

would also want to do this within your

TFSA brokerage account in order to avoid

any taxes if you were to gain money from

the currency exchange the first step is

to look up the ETF name dlr do located

on the Toronto Stock Exchange take note

of the ask price for the stock then you

will divide the amount of Canadian

dollars you want to exchange by this ask

price in order to know how many shares

you need to buy once this is done fill

in the lines within the ask price the

number of shares and change the order

type to a limit order by changing the

order type to a limit order this will

ensure you will buy each stock at a

certain price only once you have the dl

RTO shares the third step now is to

journal these stocks into DL are you Tia

journaling a stock just means converting

the dlr toh a Canadian stocks into DL

aren't you do H a US stocks in order to

do this you would need to contact quest

trade and send them a message such as I

have X amount of DL RTO stocks that I

want to journal into DL are you Dottie

Oh could you help me with this the

easiest way I found is through their

online chat the customer service

representative will tell you that

journaling the stock will take around

five business days for the process to be

complete avoid having any stat holidays

during these five business days because

stock exchanges are closed on those days

thus it would extend you further an

extra day you want to perform Norbert's

gambit quickly in order to avoid any

fluctuations with the exchange rate

after the five business days has passed

and your brokerage account has DL art

you do shares all you have to do is sell

your shares for US dollars fill the

limit price with the bid price and set

the order type to limit order once your

entire order sells you will have

successfully converted your Canadian

dollars into US dollars at the current

exchange rate take note of the ask price

for DL are toh a divided by the bid

price of DL are dot UT oo which

be the exact currency exchange rate for

one US dollar to Canadian dollars by

using Norbert's gambit I've saved myself

thousands of dollars from exchange fees

with more Bert's gambit you can also do

the reverse in order to exchange u.s.

dollars into Canadian dollars a good

time to do a currency exchange is when

the conversion rate between one u.s.

dollar to Canadian dollars is low and to

do the reverse when the exchange rate is

high this also makes you some profit on

the side if you manage to do at the

right time that is all for today I hope

you enjoyed this video if you want to

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take care